Arkansas Attorney General Tim Griffin has announced a $63 million settlement with Family Dollar, addressing allegations that the retailer charged customers more at checkout than the prices advertised on shelves or in promotional materials. The agreement, reached in coordination with the Federal Trade Commission and attorneys general from 16 other states, includes $95,321 allocated to Arkansas.
Griffin stated that the settlement resolves claims that Family Dollar routinely displayed lower prices than customers were ultimately charged, a practice that disproportionately impacted low-income shoppers who rely heavily on discount retailers.
As part of the settlement, Family Dollar will create a $40 million consumer redress fund. Eligible customers who purchased goods between January 1 and October 1 of this year will be able to file claims on Family Dollar's website following approval of the settlement by a federal court. Additionally, the company will implement a $20 million discount program, providing a 15% discount on certain merchandise.
The agreement also requires Family Dollar to establish a pricing accuracy program, which will be subject to independent audits. The retailer is prohibited from misrepresenting prices as part of the settlement terms.
This is the second significant legal matter involving Family Dollar in Arkansas within recent years. In 2022, the company reached a $5.5 million settlement related to a rodent infestation at its West Memphis distribution center, which prompted a large-scale product recall.
Consumers impacted by the latest pricing issues are encouraged to visit Family Dollar’s website for claim filings once the settlement gains court approval.