The settlement resolves allegations that Family Dollar charged customers more at the register than the prices advertised on store shelves, price tags and in advertisements. Illinois joined the Federal Trade Commission and 16 other states in suing the company.

Under the agreement, Family Dollar will establish a $40 million redress fund for eligible consumers and a $20 million discount program for customers. Illinois will receive $188,548 as part of 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 a 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.

As part of the settlement, Family Dollar must post notices about the redress fund at all stores and on its digital platforms. The chain also must create a pricing accuracy program that regularly monitors and verifies prices, trains employees to spot discrepancies and corrects errors so customers are charged the advertised or displayed price. The program will be independently assessed and certified each year.

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

The settlement comes as many households struggle with rising costs for everyday essentials, and it puts new scrutiny on retail pricing practices that can quietly drain budgets in low-income communities.