Family Dollar Settles Overcharge Claims for $63 Million

NASHVILLE, Tenn. — Shoppers who paid more at a Family Dollar register than the price on the shelf may have money coming, after Tennessee Attorney General Jonathan Skrmetti on Nov. 13 announced the state is part of a $63 million settlement with the discount chain.

Tennessee is one of 17 states that teamed up with the Federal Trade Commission on the case. The complaint and a proposed order were filed in federal court for the Eastern District of Virginia on Nov. 12.

The states allege the retailer routinely rang up items above the prices shown on shelf tags, in mailers, on its website and in its app, and kept doing so even after thousands of inspections came back failed, hundreds of customers complained and regulators took action more than once. The FTC estimates about 4.2% of Family Dollar sales across the country end in an overcharge. In Tennessee, the claims cover the 148 Family Dollar locations in the state, failed state weights and measures checks and the Tennessee Consumer Protection Act.

The biggest piece of the deal is a $40 million fund to repay customers who shopped at Family Dollar from March 1, 2023, through Oct. 1, 2026. An outside administrator will run the claims process at the company expense, and people will get up to 180 days to file once it opens. The chain must also post notices in stores, online and in its app telling customers they may qualify.

Another $20 million goes to a two-day, 15% discount on goods and services at Family Dollar stores, figured from real current prices. That sale has to start within 90 days after the settlement is approved and must be cleared by the FTC in advance. The remaining $3 million is split among the states by store count, with $155,028.52 going to Tennessee.

Skrmetti said in the announcement that Tennessee consumers are owed honest prices and that the deal gives them real relief while setting clear rules for the company.

Going forward, Family Dollar is barred for good from misstating prices. Within 90 days of approval it must stand up a pricing accuracy program with point-of-sale safeguards, yearly staff training, itemized receipts, at least two surprise price audits at every store each year, and independent outside reviews annually for five years.

Filed under: Nashville TN Business News