Tennessee Settles with Family Dollar for $63 Million Over Deceptive Pricing
November 13, 2026, 12:12 p.m.

NASHVILLE, TN - Tennessee Attorney General Jonathan Skrmetti announced a $63 million multistate settlement with Family Dollar Stores to resolve allegations that the retailer charged consumers more at checkout than the prices it advertised.

“Tennessee consumers deserve honest prices from retailers,” said Attorney General Skrmetti. “This settlement provides meaningful financial relief to Tennesseans and clear responsibilities for Family Dollar to improve pricing accuracy and prevent deceptive practices. Our office is committed to protecting Tennessee consumers and holding businesses accountable for unfair and deceptive practices”

The settlement follows a Federal Trade Commission (FTC) investigation that identified widespread pricing discrepancies at Family Dollar stores, including failures in Tennessee’s Weights and Measures inspections. The FTC estimates that approximately 4.2% of Family Dollar sales nationwide result in consumer overcharges. The allegations involve Family Dollar’s 148 Tennessee stores and violations of the Tennessee Consumer Protection Act.

MONETARY RELIEF

The settlement requires Family Dollar to provide $63 million in monetary relief, including:

$40 million Consumer Redress Fund: Payments for eligible consumers who purchased goods from Family Dollar between March 1, 2023, and October 1, 2026. Consumers will have up to 180 days to submit claims through an independent third-party administrator. Family Dollar will bear the costs of administering the consumer redress program.

$20 million Discount Program: A 15% discount on goods or services at Family Dollar stores for two consecutive days, based on genuine current retail prices. The program must be implemented within 90 days of entry of settlement approval and receive advance FTC approval.

$3 million in state payments: Distributed among participating states based on store counts. Tennessee will receive $155,028.52.


INJUNCTIVE RELIEF AND PRICING SAFEGUARDS

The settlement permanently prohibits Family Dollar from misrepresenting prices or other material facts to consumers. Within 90 days of settlement approval, the company must establish a comprehensive Pricing Accuracy Program requiring:

• Publicized Lowest Price and Price Adjustment policies;
• Point-of-sale controls and technical monitoring to ensure advertised prices are honored;
• Annual employee training;
• Itemized consumer receipts;
• At least two random, unannounced pricing audits of every store annually;
• Oversight by a qualified individual reporting to the board or a senior officer of the company;
• Annual independent third-party assessments for five years.

Source: Office of the Tennessee Attorney General