An investigation reveals that Family Dollar and Dollar General stores are systematically overcharging customers due to widespread discrepancies between advertised shelf prices and actual scanned prices. Thousands of failed price accuracy inspections across multiple states disproportionately impact low-income shoppers, while inadequate regulations and understaffing contribute to the problem.
A Guardian investigation uncovered rampant overcharging at Family Dollar and Dollar General stores across the U.S., stemming from discrepancies between shelf prices and register prices. An inspector in Windsor, NC, found a 23% error rate at a Family Dollar, which had failed four consecutive inspections. Nationwide, Dollar General failed over 4,300 price inspections in 23 states, and Family Dollar failed over 2,100 in 20 states since January 2022, with some error rates as high as 76%. These overcharges primarily affect low-income customers who rely on these stores and may not notice the discrepancies. State laws often cap fines at low amounts (e.g., $5,000 in North Carolina), making it 'cheaper to pay the fines' than to fix the systemic issue. Multiple state attorneys general have secured multi-million dollar settlements against both companies for consumer fraud, but the problem persists. The core issue is often attributed to the dollar-store industry's severe understaffing. While register prices update automatically, shelf tags require manual replacement. Employees, often working alone, lack the time to update hundreds of price and sale stickers weekly. Some workers also reported deceptive practices, where 'sale' stickers advertise prices that are, in fact, the regular price. Both companies declined interviews, with Dollar General arguing that 100% price accuracy is 'virtually impossible.' Critics argue these are not accidental errors but a known, systemic problem benefiting the companies. Many states have lax or no retail pricing inspections, leaving consumers to self-monitor. Even in states with tougher enforcement, repeat violations continue after settlements. Customers like Linda Davis, who lives on Social Security, and Melanie Hutzler, who relies on government food assistance, shared stories of consistent overcharges and difficulty getting corrections. These stores are often the only accessible option in 'food deserts,' further entrenching vulnerable communities in this cycle. Legal recourse for customers is also limited, as Dollar General has successfully pushed for arbitration, effectively closing the door to class-action lawsuits for many. The article concludes that while dollar stores claim to serve communities, critics argue they are a cause of economic distress, contributing to the closure of independent businesses and limiting access to nutritious food.
