Arkansas Attorney General Tim Griffin announced Friday that Family Dollar has agreed to a $63 million settlement over allegations that customers were charged more at checkout than prices advertised on store shelves and in print and digital promotions.
The agreement was reached with the Federal Trade Commission and attorneys general from 17 states. It includes nationwide financial relief for eligible consumers, a discount program and requirements intended to improve the accuracy of Family Dollar’s prices.
“As part of this settlement, Family Dollar will create a nationwide Consumer Redress Fund of $40 million for eligible consumers, which will be managed by a third-party administrator.” — Attorney General Tim Griffin
Consumer relief and eligibility
The settlement calls for a $40 million Consumer Redress Fund. Consumers who bought items at a Family Dollar store between Jan. 1, 2023, and Oct. 1, 2026, will be eligible to seek compensation under the agreement.
A claim form will be posted at Family Dollar’s website within 14 days after a federal court enters the proposed settlement order. The fund will be administered by a third party, according to Griffin’s announcement.
- Eligible purchases must have been made at a Family Dollar store between Jan. 1, 2023, and Oct. 1, 2026.
- Family Dollar will establish a nationwide discount program offering 15% off eligible merchandise.
- Arkansas will receive $95,321 under the settlement.
Pricing requirements
The agreement also includes an injunction barring Family Dollar from misrepresenting the prices of its goods or services. The company must create and implement a pricing accuracy program that will be independently assessed and certified each year.
Griffin said the alleged pricing practices affected customers in Arkansas and elsewhere who paid more at checkout than the amounts displayed in Family Dollar advertising or on store shelves. His office said the enforcement action was conducted jointly with the FTC and the participating state attorneys general.
The proposed settlement must receive a federal court order before the consumer claims process begins. Griffin’s announcement identified the redress fund, discount program, pricing restrictions and annual certification requirement as the principal consumer-related terms of the agreement.
