Family Dollar agrees to $63 million overpricing settlement

Family Dollar customers were allegedly paying more at the register than the prices displayed on shelves, and now the company has agreed to pay $63 million to settle the case. The proposed settlement, filed in federal court in Virginia, covers thousands of stores nationwide. Of the settlement amount, $40 million will go towards refunds, $20 million towards discounts and more than $3 million towards the states. A judge still has to sign off.Family Dollar stores overcharged consumersThe state and the Federal Trade Commission (FTC) alleged that Family Dollar regularly charged customers more at the register than the prices displayed on shelves, price tags and advertisements, costing consumers millions of dollars.The proposed order prohibits Family Dollar from misleading customers about prices and requires it to introduce a pricing programme that is independently reviewed and certified every year.“The FTC is committed to ensuring price transparency and fairness so consumers can make informed choices. Today’s order will ensure Family Dollar stops deceiving consumers about its prices and returns money to consumers harmed by these practices,” Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, said in a release.The complaint says the overcharges hit hardest in low-income communities, where many residents have limited access to full-service grocery stores.