Attorney General Mayes Reaches Settlement With Family Dollar Over Price Misrepresentation

Attorney General Mayes Reaches Settlement With Family Dollar Over Price Misrepresentation

Retailer agrees to pay penalties, improve training, and honor shelf prices after state investigation

PHOENIX — Arizona Attorney General Kris Mayes announced a settlement with Family Dollar Stores, LLC over allegations the company inaccurately advertised item prices at stores across the state.

Following a consumer fraud investigation, Family Dollar agreed to pay $275,000 in civil penalties and $25,000 in attorneys’ fees. Additionally, the company will implement a series of changes aimed at ensuring price accuracy, including dedicating 10,000 additional labor hours over the next two years to price updates, investing $300,000 in employee training, and guaranteeing that customers will pay the lower of the shelf or register price.

“With grocery prices skyrocketing, it’s critical that Arizona consumers are not being charged more at the register than what they were promised in the aisle,” Mayes said. “Inaccurately advertising pricing is simply unacceptable.”

The investigation revealed that Family Dollar repeatedly failed UPC scanning inspections in multiple Arizona locations. The errors often occurred when register prices were changed before employees updated store shelf tags.

As part of the agreement, Family Dollar must train all store employees on price accuracy procedures during onboarding and annually thereafter. The company is also required to submit records demonstrating compliance and to post notices at all registers in Arizona informing customers of their right to the lower price.

Consumers are encouraged to check prices at checkout and report discrepancies. If a business refuses to honor the lower advertised price, complaints can be filed with the Arizona Attorney General’s Office.

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