Family Dollar Stores, a subsidiary of Dollar Tree, has been ordered to pay a record-breaking $41.6 million fine after pleading guilty to storing food, drugs, cosmetics, and medical devices in a rodent-infested warehouse in West Memphis, Arkansas. The U.S. Food and Drug Administration found "live rodents, dead and decaying rodents, rodent feces, urine, and odors, and evidence of gnawing and nesting" at the facility, leading to the largest-ever monetary criminal penalty in a food safety case in the United States.

The company continued to ship products to over 400 stores in six states despite receiving reports of mouse and pest issues starting in August 2020. By January 2021, some employees were aware of the insanitary conditions causing product contamination, yet shipments continued until January 2022 when an FDA inspection uncovered the extent of the infestation, resulting in the extermination of 1,270 rodents.

In a statement, acting Associate Attorney General Benjamin C. Mizer emphasized that consumers have the right to expect clean and uncontaminated products on store shelves. The company's chairman and CEO, Rick Dreiling, who took over in March 2022, expressed disappointment in learning about the issues at the facility and stated that Dollar Tree is committed to enhancing safety protocols to prevent future incidents.

As part of a plea agreement, Family Dollar Stores and Dollar Tree must adhere to robust corporate reporting guidelines for the next three years. Dollar Tree plans to invest $100 million in improving the West Memphis distribution center and creating 300 jobs, aiming to return to the site by the fall. The company has also faced previous recalls due to improper storage conditions, indicating a need for heightened safety measures moving forward.