Family Dollar Ordered to Pay $42 Million

(PatriotSpotlight.org) – Family Dollar Stores will pay out a major fine of almost $42 million after admitting it stored consumer goods, including food, drugs, cosmetics, and medical products, in a rat-infested warehouse. The Department of Justice revealed on Monday 26 Feb, that the subsidiary of Dollar Tree, Inc. acknowledged that they had maintained unsanitary conditions at one of its distribution centers in West Memphis, Arkansas, prompting the contamination of products shipped to over 400 Family Dollar stores across six U.S. states.

According to court documents, company knowledge of pest hazards at the location dates back to August 2020, with numerous stores reporting receiving rodents and damaged products. By January 2021, employees knew that the filthy conditions were resulting in product damage and contamination. Despite this, the warehouse carried on shipping products from this location until January 2022, when an FDA inspection uncovered live rodents, rodent feces, urine, and evidence of animals gnawing and nesting throughout the facility. Subsequently, nearly 1,300 rodents were exterminated, and the company initiated a massive recall of products sold by 404 affected stores.

Brian Boynton, principal deputy assistant attorney general and head of the Justice Department’s civil division said it was “incomprehensible” that the business was aware of the rodent and pest issues at the Arkansas warehouse, but continued shipping products that were neither safe nor sanitary. Meanwhile, Dollar Tree Chairman Rick Dreiling has expressed disappointment over the incident, stating that as part of his role, he has “worked diligently” to help the firm resolve this matter and shift its policies to ensure such an incident is “not repeated”.

This is not the company’s only scandal under Dreiling’s leadership, with Family Dollar facing recalls in October and May 2023 for improperly stored products, including Advil. Dollar Tree operates over 16,000 stores across the United States and Canada. The company is known for offering a wide range of low-cost products, including household goods, party supplies and snacks.

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