Popular Retail Chain Accused Of Price-Gouging At 20 MI Stores

Michigan Attorney General Dana warned Five Below to stop overcharging customers and clearly display item prices.

Nessel accused the popular retail chain of committing price violations under the Michigan Shopping Reform and Modernization Act and the Michigan Consumer Protection Act at 20 different Michigan stores on 30 separate occasions. Officials did not list the stores.

Officials have issued 30 price non-compliance findings at the stores since June 5. In response, Five Below said it would conduct an internal pricing audit to confirm that all displayed prices align with sale prices, retrain staff and instruct them to verify the prices of items in stores.

However, officials documented more than 18 instances, in which items labeled as $5 were actually charged $6 or $7 at the register between Aug. 3 and Nov. 5, Nessel said.

She said officials found overcharges at eight different Michigan Five Below stores in October alone.

"Shoppers should know the price they see on the shelf is what they will be charged, and repeated overcharging violations are unacceptable," Nessel said. "I want to thank MDARD for their work in identifying these violations and urge consumers to remain vigilant against overcharges when they shop."

Officials said Five Below has until Dec. 15 to meet with the attorney general to explore an agreement for voluntary assurance of compliance. They could get hit with civil fines and lawsuits if they do not comply.

"MDARD’s weights and measures inspectors work every day to ensure Michiganders encounter fair and transparent pricing when they’re out shopping," said MDARD Director Tim Boring. "This investigation and coordination with the attorney general is an example of that diligent commitment to consumers and a reminder to pay attention to pricing when you get to the register."

To file a complaint with the Attorney General or get additional information one can call 517-241-3771 or fill out an online complaint form.