Illinois customers to receive payments from $63 million Family Dollar settlement over price discrepancies

Illinois customers will soon receive payments after Family Dollar agreed to a $63 million settlement over allegations of price discrepancies at its stores, officials announced Friday.

Illinois, the Federal Trade Commission and 16 other states sued the company, alleging it charged customers more at the register than the prices advertised on store shelves, price tags and in advertisements.

The company will have to establish a $40 million redress fund for eligible consumers and a $20 million discount program for customers, Illinois Attorney General Kwame Raoul said in a Friday statement.

Illinois will also receive $188,548 in the settlement.

“Family Dollar overcharging for products at a time when many basic necessities have become less affordable harms vulnerable families and communities,” Raoul said in the statement. “I am pleased with this settlement that holds Family Dollar accountable and takes steps to ensure that it will not overcharge consumers in the future. I remain committed to protecting Illinois consumers from unfair business practices.”

The complaint alleged that thousands of Family Dollar stores overcharged customers and that the company failed to address the problem despite repeated failed inspections and customer complaints.

Family Dollar will be required to post notices of the redress fund at all stores and on its digital platform, Raoul's office said.

The chain must also establish a pricing accuracy program that will regularly monitor and verify prices, train employees to identify discrepancies, and correct errors to ensure customers are charged the prices advertised or displayed.

The pricing accuracy program will be independently assessed and certified annually.

Family Dollar did not immediately respond to a request for comment.