Family Dollar to Pay $42M Fine for Storing Rat-Infested Products, Largest Food Safety Penalty

Family Dollar Stores has reached a settlement with the Department of Justice to pay a fine of almost $42 million after pleading guilty to unlawfully storing consumer products, including food, drugs, cosmetics, and medical devices in a warehouse infested with rodents. The company admitted to allowing products to become contaminated at a distribution center in West Memphis, Arkansas, and has agreed to the largest-ever monetary criminal penalty in a food safety case.

Filthy Distribution Center

The subsidiary of Dollar Tree acknowledged that its facility in West Memphis, Arkansas, shipped Food and Drug Administration-regulated products to over 400 Family Dollar stores in several states. Reports of rodent and pest issues with store deliveries began surfacing in August 2020, with some stores receiving rodents and rodent-damaged products by the end of the year. The company further confessed that by January 2021, some employees were aware of the unsanitary conditions causing product contamination. Despite this, the warehouse continued shipping 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 throughout the facility. Subsequently, nearly 1,300 rodents were exterminated, and the company initiated a massive recall of products sold by 404 stores serviced by the warehouse on February 18, 2022.

Legal Consequences

The Department of Justice condemned the company's actions, with Brian Boynton, principal deputy assistant attorney general and head of the Justice Department's civil division, expressing disbelief that Family Dollar continued to ship unsafe and unsanitary products despite being aware of the rodent and pest issues at its distribution center in Arkansas.

Corporate Response

Following the settlement, Dollar Tree's Chairman and CEO, Rick Dreiling, expressed disappointment and stated that efforts have been made to rectify the situation and prevent its recurrence since he assumed the role of CEO.

Recalls and Company Operations

In addition to this incident, Family Dollar had previously recalled hundreds of consumer products sold in 23 states due to improper storage. This was preceded by another recall in May for certain Advil products stored at the wrong temperature. Dollar Tree, the parent company, operates a vast network of 16,622 stores across 48 states and five Canadian provinces.