The FTC said consumers reported widespread discrepancies, and inspections confirmed that shelf labels showed lower prices than cash registers charged. The agency also alleged that customers were denied discounts advertised through digital coupons because the app did not work at checkout.

Under the proposed order, Family Dollar would set up a $40 million fund for eligible customers and a $20 million discount program. Payments exceeding $3 million would also go to states involved in the suit. The company would be required to establish a program to monitor and verify prices.

The FTC said Family Dollar had been fined $3 million over pricing violations in the past five years. It also said the company entered multiple settlements over the past three years, paying $800,000 in penalties for inaccurate pricing. In October, the agency filed a similar pricing complaint against Dollar General; that case is ongoing.