Five Below has agreed to pay the state of Michigan $179,500 after regulators documented dozens of instances where the discount retailer's registers charged more than the price printed on the shelf tag. Michigan Department of Agriculture and Rural Development inspectors documented 30 non-compliance findings involving Five Below stores across Michigan, including stores near Ann Arbor and Novi.
The settlement resolves allegations that Five Below violated the Michigan Shopping Reform and Modernization Act and the Michigan Consumer Protection Act, according to CBS News. The Michigan Department of Agriculture and Rural Development documented at least 30 alleged instances of overcharging or failing to display price tags since June 2025, per that outlet's reporting. About half of Five Below's Michigan stores sit in the southeastern part of the state, including locations in Ann Arbor, Novi, Allen Park, Farmington Hills, Northville, Orion, Bloomfield Hills and Brighton.
Conflicting Timelines on When Violations Piled Up
Accounts differ on exactly when the bulk of the alleged violations occurred. CBS News reported that 18 of the instances were logged between Aug. 3, 2025, and Nov. 5, 2025, while WTOL reported that inspectors recorded 30 separate non-compliance findings at 18 Five Below stores between June 5 and Nov. 6, 2025. Attorney General Dana Nessel sent Five Below a notice of intended action on Nov. 20, 2025, ahead of the settlement.
Separately, WLNS reported that pricing problems surfaced at nearly 20 stores across 30 separate occasions, and that in October 2025 alone, overcharges were found at eight different store locations. The agreement includes mandated pricing controls.
What Five Below Must Now Do Differently
Under the agreement, Five Below will implement and maintain policies and protocols meant to ensure ongoing pricing accuracy and compliance with Michigan law. The company is adding staff hours dedicated to pricing accuracy, enhancing training for employees on pricing, and establishing an internal pricing-audit procedure, per the same cbsnews.com account.
On top of those internal changes, Five Below will undergo quarterly pricing audits by an independent auditor for one full year. The retailer also faces enhanced penalties for repeat pricing violations over the next three years should problems resurface.
Where the $179,500 Is Going
Of the total payment, $50,000 will go to the Michigan Department of Agriculture and Rural Development to cover its investigation costs. The remaining balance will fund the independent audits, with the rest distributed to the Michigan Department of the Attorney General, according to the cbsnews.com report.
Nessel said Five Below cooperated during the settlement process. “This agreement holds Five Below accountable and requires concrete business-practice improvements,” Nessel said, adding that Michigan consumers must be able to trust that shelf prices match what they're actually charged at the register.
Michigan's scanner law separately spells out what shoppers can do if they catch an overcharge themselves: consumers can seek the price difference plus $5 or 10 times the difference, whichever is greater, subject to a maximum payment of $15, according to guidance published by the state.
