Dollar Tree, Inc. announced that it has resolved with the Consumer Protection Branch (CPB) of the U.S. Department of Justice (DOJ) regarding operations at Family Dollar's West Memphis, Arkansas distribution center.
The Largest Penalty of The FDA
Family Dollar Stores was told to pay $41.6 million for using a rodent-infested warehouse to distribute food, cosmetics, and medical devices to over 400 Southern stores.
The Justice Department stated that the most significant penalty of its kind follows a U.S. Food and Drug Administration (FDA) investigation that discovered live and decaying rodents, rodent feces, and urine, along with gnawing and nesting evidence at Family Dollar's West Memphis distribution center.
With 8,000 stores in 46 states and acquired by Dollar Tree in 2015, the company admitted guilt to one misdemeanor count of storing goods under unsanitary conditions in a federal court in Little Rock on Monday.
The department noted it as the largest U.S. food safety case fine. Family Dollar Stores and Dollar Tree agreed to meet "robust" corporate reporting guidelines for three years as part of the plea deal. Acting Associate Attorney General Benjamin C. Mizer stated that consumers expect clean, uncontaminated food and drugs on store shelves when going to stores.
The Long-Standing Mouse and Pest Issues at Family Dollar Stores
The plea agreement mentioned that in August 2020, the company was informed about "mouse and pest issues," but deliveries continued to 404 stores across several states, including Alabama, Missouri, Mississippi, Louisiana, Arkansas, and Tennessee. The company admitted that some employees knew in January 2021 that the warehouse conditions were unlawful.
However, it persisted in shipping goods from the warehouse until January 2022, when the FDA's investigation uncovered the full extent of the infestation. Following the fumigation of the building, exterminators discovered 1,270 dead mice, according to the DOJ. It was not until February 18, 2022, that all food, drugs, cosmetics, and medical devices from the warehouse were recalled.
Attorney Jonathan D. Ross expressed disbelief that Family Dollar kept shipping unsafe and unsanitary products despite knowing about rodent and pest issues at its Arkansas distribution center, adding that selling these types of products intentionally not only places the public's health at risk but erodes consumers' trust in the products they purchase.
Dollar Tree's Commitment Moving Forward
Dollar Tree stated it cooperated with the DOJ's probe and is updating safety measures. Dollar Tree CEO Rick Dreiling, who assumed his role in March 2022, mentioned, "We are continuing to move forward on our business transformation, safety procedures, and compliance initiatives."
Dreiling mentioned that since then, and particularly after taking on the CEO role, they have diligently worked to aid Family Dollar in resolving the issue and improving their policies, procedures, and facilities to prevent a recurrence.
The company intends to return to the West Memphis location by fall, investing $100 million to enhance distribution and create 300 jobs.
