Michigan's Attorney General Dana Nessel has issued a notice of intended action to value retailer Five Below after numerous incidents of assumed pricing violations in their Michigan stores. The Attorney General's office has accused the company of non-compliance with the Michigan Shopping Reform and Modernization Act and the Michigan Consumer Protection Act. These allegations stem from findings by the Michigan Department of Agriculture and Rural Development (MDARD) regarding scanner overcharges and the misrepresentation of item prices on multiple occasions.
The MDARD has reportedly uncovered 30 separate non-compliance findings at nearly 20 Five Below store locations since June 5, despite the company's claims to address the matters internally. Five Below has stated intentions to run an internal audit, retrain their employees, and check for correct pricing displays. However, Nessel's notice suggests these proposed solutions have not completely resolved the issue. From August through November, MDARD documented overcharges at the register for items advertised as $5, which were instead charged at $6 or $7, with October seeing such incidents at eight different locations, according to a press release by the Michigan Attorney General's office.
"Shoppers should know the price they see on the shelf is what they will be charged, and repeated overcharging violations are unacceptable," Nessel said. In an effort to maintain consumer trust in retail pricing fairness, the Attorney General has recognized the efforts of the MDARD's Weights and Measures inspectors and urges consumers to be vigilant.
MDARD Director Tim Boring remarked on the importance of their work, stating, Michigan Attorney General's Office, "This investigation and coordination with the Attorney General is an example of that diligent commitment to consumer and a reminder to pay attention to pricing when you get to the register, especially as we enter the holiday season." The retailer has until December 15 to discuss and potentially reach a voluntary compliance agreement that could help avoid litigation and civil penalties.
