Dollar Tree will pay nearly $560,000 after state investigators found the retailer continued selling recalled, lead-contaminated children’s food at New York stores.
Attorney General Letitia James announced the settlement after an investigation showed Dollar Tree failed to promptly remove WanaBana-brand cinnamon applesauce pouches from shelves following a nationwide recall in October 2023. The products were marketed largely for babies and young children and were pulled after tests found dangerously high levels of lead.
State officials say Dollar Tree received direct notice of the recall but did not immediately block sales or fully remove the applesauce from stores. As a result, hundreds of contaminated pouches were sold to New York customers days after the recall began.
Sales continued after recall notice
The Attorney General’s Office found that Dollar Tree sold at least 226 three-pack units of the recalled applesauce in New York after receiving notice from its supplier. Some sales occurred days later, and in at least one case, a customer received the product through online order pickup a full week after the recall started.
Investigators say the company delayed activating register “lock” systems that prevent recalled items from being sold and, at some locations, failed for weeks to remove the products from shelves.
Dollar Tree operates more than 300 stores across New York, many located in communities with limited access to full-scale grocery stores.
Health risks for children
State health data show dozens of New York children suffered elevated blood lead levels linked to consumption of the recalled applesauce. Most families reported purchasing the product at Dollar Tree locations.
Lead is a highly toxic metal that can cause serious and irreversible health effects, especially in children under six.
“Parents should never have to worry that the food they buy at the store could harm their children,” James said, adding that the company’s delay put families at serious risk.
Penalty and policy changes
Under the settlement, Dollar Tree will pay $559,250 in penalties, or about $2,474 for each three-pack unit sold in New York after the recall notice. The state will direct the money toward lead poisoning prevention efforts and expanding access to healthy, affordable food in underserved communities.
Dollar Tree must also overhaul its recall and food safety procedures in New York. The agreement requires faster activation of register stop codes, enhanced recall training for store managers, and stronger systems to notify online customers when purchased food products are later recalled.
The company must report back to the Attorney General’s Office on its compliance.
Consumers who bought the recalled applesauce previously received refunds from the manufacturer, along with limited reimbursements for related health care costs.
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