(File Photo: Source for Photo: A large billboard sign beckons customers to this Family Dollar store in Jackson, Miss., Tuesday, Nov. 26, 2019. (AP Photo/Rogelio V. Solis)
Noah Haswell, Beaver County Radio News
(Harrisburg, PA) Pennsylvania Attorney General Dave Sunday, along with the Federal Trade Commission (FTC) and 16 other states, recently secured a $63 million national settlement with Family Dollar Stores to resolve allegations that the company routinely charged customers more at the register than the prices that were displayed on shelves, price tags, and advertisements.
In a proposed order that was filed by Pennsylvania and the partners, Family Dollar will be prohibited from misrepresenting the price of its goods and services.
According to the complaint, thousands of Family Dollar stores nationwide have overcharged shoppers while failing to correct the issue despite thousands of failed inspections, hundreds of consumer complaints, and multiple enforcement actions.
Consumers have reported widespread pricing discrepancies consistently, and regulatory inspections confirmed inaccurate price labels in Family Dollar stores nationwide.
The complaint also alleges that Family Dollar charged customers more at the register than as labeled and on its website and mobile app.
Family Dollar will be required to establish a $40 million consumer redress fund, payable to eligible consumers, and a $20 million discount program for Family Dollar consumers under the proposed order.
Family Dollar must also notify customers of their redress fund eligibility by clearly posting notices on its digital platforms and in its stores.
The company also must establish a pricing accuracy program that requires it to regularly monitor and verify prices, train employees to identify discrepancies, and promptly correct errors to ensure that customers are charged the prices that are advertised or displayed.
The enforcement action against Family Dollar also included: Alabama, Arkansas, Colorado, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Ohio, Oklahoma, South Carolina, Tennessee, Utah and Wisconsin, in addition to the FTC.