Pennsylvania among states named in Family Dollar settlement claiming the retailer overcharged customers
The Pennsylvania Attorney General's office announced a multi-million-dollar settlement between Family Dollar and customers in 17 different states, including Pennsylvania.
The settlement comes amid accusations that the popular retailer overcharged customers at the register, making them pay more than the listed prices.
"I think this is a slam-dunk case of deception," said Dr. Risa Kumazawa, an associate professor of economics at Duquesne University.
Dr. Kumazawa said the attorney general's findings show that Family Dollar knowingly deceived customers.
"They ended up not paying the prices that were posted, either on the shelves or on the weekly ads on their website, and when they complained, the situations were not rectified," she said.
Dr. Elaine Luther is a business management professor at Point Park University, and she said Family Dollar isn't the only retailer that is misleading with discount pricing.
"I still go in the stores, and I don't see stickers on each product," she said. "So, that means that all the stores — and I'm talking Dollar General, Family Dollar, and Dollar Tree- don't have prices on everything."
That is when things can get confusing for customers. Dr. Luther said it causes customers to have to associate a tag on the shelf with the product, and then remember it until they get to checkout.
As part of the settlement, Family Dollar has been ordered to pay $63 million, and $40 million of it will be used to refund customers who are eligible. Then, the remaining $20 million will be used for a discount program for Family Dollar customers.
So, what does this all mean for customers in the future?
"When you get there, don't be in a rush to check out, but ask, 'Can I check the price on these because I wasn't sure of them,'" Dr. Luther said.
Consumer advocates said if you feel that you've been overcharged or defrauded, you can file a complaint with the attorney general's office at this link.