Family Dollar to pay $63 million to settle allegations that it routinely overcharged customers

Family Dollar will pay $63 million to settle state and federal allegations that it routinely charged customers more at the register than the prices displayed on its shelves, website and mobile app.

The Federal Trade Commission and 17 states filed federal charges against the company Thursday and announced the proposed settlement the same day. The settlement must still be approved by a judge.

According to the FTC’s complaint, consumers from across the country have been reporting price discrepancies at Family Dollar for years. In January 2025, for example, consumers from at least seven states reported that Family Dollar refused to honor a “2 for $20” sale on a package of diapers, even though the price was advertised on its mobile app and on shelf tags.

One Michigan consumer took a picture of the “2 for $20” shelf tag and brough...