Family Dollar reaches $63 million settlement over repeated overcharges

Family Dollar agreed to a proposed $63 million settlement with the Federal Trade Commission and 17 states over allegations that shoppers were repeatedly charged more at checkout than prices displayed on shelves, tags, the company’s website, app and promotions. Regulators said the discrepancies persisted despite customer complaints, inspections and earlier enforcement, disproportionately affecting low-income communities. The settlement, which requires federal court approval, includes $40 million for eligible customers who made purchases during the covered period, a $20 million program offering 15% discounts, and more than $3 million for participating states. Family Dollar must adopt a pricing-accuracy program with employee training, monitoring, prompt corrections and independent annual assessments, and is barred from misrepresenting prices. The company said it would work with regulators to meet the requirements and improve pricing accuracy, and neither admitted nor denied the allegations.