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Colorado to Receive $87K from Family Dollar Settlement Over Pricing Discrepancies

Colorado will receive over $87,000 from a nationwide settlement with Family Dollar after an investigation found the chain charged customers more at the register than advertised prices. The state also joined a separate $183.5 million settlement with rent-to-own financier Acima Digital over deceptive practices.

Colorado to Receive $87K from Family Dollar Settlement Over Pricing Discrepancies

Colorado will receive more than $87,000 from a nationwide settlement with Family Dollar after an investigation revealed the retail chain was charging customers more at the register than the prices listed on shelves and in advertisements, Attorney General Phil Weiser's office announced Thursday.

The settlement, totaling $60 million across more than a dozen states, follows a multi-state investigation that began in 2023 after customers reported being overcharged compared to prices listed on the company's website, mobile app and in-store shelves. Internal documents suggested Family Dollar likely knew about the discrepancies but failed to resolve them, according to the Attorney General's Office.

Family Dollar operates 84 stores in Colorado, which are subject to regular pricing inspections by the Colorado Department of Agriculture.

"When you go to the store, you deserve to know exactly how much you are paying for something," said Weiser, who will become Colorado's next governor in January. "When you budget for groceries and anticipate paying a certain shelf price, only for that amount to change at the register, this can greatly affect a consumer. When a business does this, we will hold them accountable."

Under the agreement, Family Dollar must implement a comprehensive price accuracy system, obtain third-party price accuracy assessments, and offer a 15% discount at stores in impacted states. The discount will be funded by $20 million of the settlement funds.

In a separate announcement, Weiser's office said Colorado was part of a $183.5 million settlement with rent-to-own financing company Acima Digital, LLC, and its parent company, Acima Holdings, LLC, over allegations of deceptively advertising rental-purchase agreements and marking up the cash price of rentable items such as electronics, furniture and home appliances.

"Consumers were led to believe they could pay for their purchase over 90 days without interest or fees, but they were automatically placed into 12-month payment plans with higher charges and without their knowledge," Weiser said. "Coloradans are struggling without having to worry about being taken advantage of. Companies must be upfront and honest with Coloradans, or we will hold them accountable."

The investigation determined the 12-month payment plans cost about twice the advertised price. Acima also marketed the program as "credit," leading consumers to believe it was similar to traditional financing, authorities said. Additionally, the company blocked consumers from canceling their payment plans by returning their property.

Under the settlement, Acima must provide $1.36 million in lease forgiveness to 1,229 Colorado consumers, pay $450,000 in restitution to an additional 1,631 consumers in the state, and pay $389,000 to the state. The company is also prohibited from reporting rental-purchase agreements to the three major credit reporting agencies for three years and must comply with Colorado's Rental Purchase Agreement and Consumer Protection Acts.

More than 40 other states joined Colorado in the Acima settlement.

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