Family Dollar Faces Record Fine for Violating Product Safety Standards: A Rat-Infested Warehouse
Family Dollar Stores, a subsidiary of Dollar Tree Inc., was hit with a record-breaking fine after selling items from a warehouse that were stored in unsanitary conditions infested with rats. The retailer was fined $41.6 million, which marked the “largest-ever monetary criminal penalty in a food safety case,” according to the Department of Justice (DOJ).
Corporate Compliance and Reporting Requirements
Following this violation, Family Dollar and Dollar Tree will face rigorous corporate compliance and reporting requirements for the next three years, as outlined by the DOJ. These measures are put in place to ensure that companies adhere to regulations designed to protect consumers’ trust and safety.
Consumer Trust and Laws
Acting Associate Attorney Benjamin Mizer of the DOJ stated in a press release, “When consumers go to the store, they have the right to expect that the food and drugs on the shelves have been kept in clean, uncontaminated conditions. When companies violate that trust and the laws designed to keep consumers safe, the public should rest assured: The Justice Department will hold those companies accountable.”
Rat-Infested Facility: A Longstanding Issue
Family Dollar’s rat problem can be traced back to 2020 when the US Food and Drug Administration (FDA) discovered a distribution facility operated by the discount chain in Arkansas, which was deemed dirty and rat-infested. The FDA’s inspection report detailed numerous instances of rodent evidence, such as live and dead rats at various stages of decay, droppings, gnawings, and odors.
Continued Shipping and Recall
Despite being aware of the rodent problem since January 2020, Family Dollar continued to ship goods from that facility until January 2022. When the FDA’s investigation revealed the extent of the infestation, over 1,270 dead mice were discovered during extermination efforts.
Product Recall and Store Closures
Following the FDA’s discovery, Family Dollar voluntarily recalled dozens of food items, cosmetics, drugs, and other products and temporarily closed over 400 stores in six southern states.
Criminal Charges and Guilty Plea
Family Dollar was charged with one misdemeanor count of causing FDA-regulated products to become adulterated while being held under insanitary conditions. The company pleaded guilty to the charge on Monday, January 31, 2022.
Business Transformation and Compliance
Dollar Tree CEO Rick Dreiling commented on the matter, stating that “we are continuing to move forward on our business transformation, safety procedures, and compliance initiatives.” He added that he had joined Dollar Tree’s Board of Directors in March 2022 and was disappointed to learn about the unacceptable issues at one of Family Dollar’s facilities. The company is committed to resolving this historical matter and significantly enhancing its policies, procedures, and physical facilities to ensure the situation is not repeated in the future.
