Dollar Tree and Family Dollar Reaffirm Commitment to Safety and Compliance

Company Reaches Resolution with the U.S. Department of Justice Regarding Investigation into Operations at Family Dollar’s Distribution Center in Arkansas

The Company has reached a resolution with the Consumer Protection Branch (“CPB”) of the U.S. Department of Justice’s Civil Division and the U.S. Attorney’s Office for the Eastern District of Arkansas (“DOJ”) regarding its investigation, launched on March 1, 2022, into the operations at Family Dollar’s distribution center in West Memphis, Arkansas.

Under the terms of the plea agreement, Family Dollar Stores LLC has agreed to enter a plea of guilty to a one count misdemeanor violation relating to acts that caused FDA-regulated product held in DC 202 to become adulterated. Under the plea agreement, Family Dollar has agreed to pay $200,000 in fines and a forfeiture money judgment in the amount of $41,475,000 to the United States, which relates to the value of the adulterated FDA-regulated products that were held in DC 202. The plea agreement cites the Company’s “extensive cooperation” throughout the process.

Since March 2022 our new leadership team has fully cooperated with the DOJ’s investigation and has made significant strides to strengthen our commitment to safety and compliance, working diligently to help Family Dollar resolve issues related to this historical matter and enhance our policies, procedures, and physical facilities.

Enhancements include:

  • Created new compliance and safety roles, hiring experienced personnel to strengthen the Company’s practices, including a new Chief Legal Officer with expertise and experience building and enhancing corporate compliance programs and working in and with the U.S. Department of Justice; a new Chief Ethics and Compliance Officer with experience leading compliance at a global retailer; senior positions in Food Safety, Product Quality and Regulatory Compliance, and Environmental, Health, and Safety; and a Safety, Sanitation, and Compliance Manager in each distribution center.
  • Developed and implemented risk-based procedures and controls, and continuing to deliver extensive compliance and safety training to associates. This is supported by strengthened monitoring and auditing activities to test program execution and adherence and promote continuous improvement.
  • Over the past 18 months, each of the Company’s distribution centers has passed an independent, third-party audit and became “Good Distribution Practices” (“GDP”) certified, with all distribution centers planning to maintain the distinguished certification.

Re-establishing operations in West Memphis

Dollar Tree recently announced that Family Dollar plans for operations to return to West Memphis, Arkansas, with a fully reimagined and refreshed distribution center. The new facility, expected to be operational by fall 2024, reflects more than $100 million in current and anticipated future investments. The facility, which is expected to initially provide more than 300 new jobs for Arkansas workers, is being rebuilt with a strong emphasis on safety, sanitation, and compliance and should serve as a model of excellence for all facilities in the Dollar Tree and Family Dollar network.

Read more in our Health and Safety Fact Sheet.