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Michigan Attorney General Dana Nessel has put Five Below on notice, alleging the retail chain of specialty discount gifts, has been overcharging for items in Michigan stores and failing to clearly display item prices.
Nessel alleges that the Philadelphia-based chain has committed pricing violations under Michigan law at nearly 20 stores in the state on 30 separate occasions.
From Aug. 3 to Nov. 5, the state has documented more than 18 instances in which items labeled as $5 were allegedly charged $6 or $7 at the register. In October alone, overcharges were documented at eight different Five Below store locations, the AG's office alleges.
Five Below has until Dec. 15 to meet with the Attorney General's Office and assure it is in compliance. If not, it may face civil fines and litigation.
Since June 5, the Michigan Department of Agriculture and Rural Development has issued 30 Shopping Reform and Modernization Act non-compliance findings at Five Below stores, according to a press release from the Attorney General's Office in Lansing.
Five Below previously said it would conduct an internal pricing audit, retrain staff and instruct them to verify the prices of items in stores. However, Nessel alleges that these steps have not fully corrected the pricing violations.
“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 a statement.
