Mississippi | Business
Family Dollar has agreed to a proposed $63 million settlement of state and federal allegations that customers were routinely charged more at checkout than advertised prices. The Federal Trade Commission and 17 states, including Mississippi, filed federal charges Thursday.
The agreement requires approval by a judge before it can take effect. Family Dollar said Friday that it would work with the FTC and participating state agencies to satisfy the settlement’s terms.
What Happened
Regulators said consumers had reported price discrepancies at Family Dollar stores for years. The company was cited for thousands of pricing violations during the past five years, resulting in more than $3 million in fines.
In January 2025, consumers in at least seven states reported that Family Dollar stores would not honor an advertised diaper promotion offering two packages for $20. One Michigan consumer said a store manager removed a shelf tag advertising the deal after the shopper challenged the price.
Family Dollar is privately owned, based in Chesapeake, Virginia, and operates more than 8,000 discount stores across the United States. The company reported $13 billion in revenue in its most recent fiscal year.
Settlement Terms
Under the proposed agreement, Family Dollar would create a $40 million consumer redress fund for eligible customers. The company would be required to notify customers about the fund through store notices and digital platforms.
The settlement also calls for a $20 million customer discount program and a $3 million payment to the states involved. Family Dollar would be required to operate a pricing-accuracy program subject to independent assessment and annual certification.
Janella Escobar, a Family Dollar spokeswoman, said the company takes its obligation to provide customers with a positive shopping experience seriously. She said Family Dollar remains focused on improving price accuracy and retaining customer trust.
Related Federal Action
The FTC and 20 states filed a similar case against Dollar General last month. That case remains pending.
The states participating in the Family Dollar case are Alabama, Arkansas, Colorado, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Utah and Wisconsin.