i- On February 26, 2024, Family Dollar Stores LLC agreed to pay $41.675 million after pleading guilty to storing food and drugs in unsanitary conditions in a rodent-infested warehouse. In addition to monetary penalties, Family Dollar and Dollar Tree stores must “meet robust corporate compliance and reporting requirements for the next three years.”
- Family Dollar began receiving reports of rodent issues in its West Memphis, Arkansas, warehouse and in store deliveries in 2020, and by January 2021, employees were aware of the unsanitary conditions in the warehouse that caused FDA-regulated products to become adulterated. However, the company continued to ship the products until January 2022 when an FDA inspection revealed live rodents, dead and decaying rodents, rodent feces, urine, odors, and evidence of gnawing and nesting. Fumigation following the investigation resulted in the extermination of more than 1,200 rodents. In February 2022, the company initiated a recall of all drugs, medical devices, cosmetics, and human and animal food products sold since January 1, 2021, in the 404 stores that received shipments from the infested warehouse.
- Family Dollar was sued over the rodent problem in a class action on February 23, 2022, following FDA’s investigation of the warehouse. The complaint alleged that Family Dollar knowingly omitted information about the infestation from advertising and promotion of its products and continued to ship products to its stores from the warehouse in violation of state consumer protection laws and deceptive trade and practice statutes. The complaint also alleges breach of implied warranty, unjust enrichment, and negligence.
- DOJ officials commented that consumers “have the right to expect that the food and drugs on the shelves have been kept in clean, uncontaminated conditions” and that the DOJ will hold accountable companies that violate laws designed to keep consumers safe. Knowingly selling adulterated products both put public health at risk and eroded consumer trust in the safety of products they purchase. An FDA official commented that “When companies put themselves above the law and distribute food that has been held under extremely insanitary conditions, putting the public’s health at risk, we will see that they are brought to justice.”
- Dollar Tree announced that it has created new compliance and safety roles and plans to open a “fully reimagined and refreshed distribution center” in West Memphis.
Family Dollar Pleads Guilty to Food and Drug Adulteration Charge
Tuesday, February 27, 2024
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