By Fatma Younis
Thirty-four members of Congress have called on the Federal Trade Commission to investigate widespread overcharging by some of America's largest dollar-store and convenience-store chains. The letter, sent on 28 October, follows investigations that revealed pervasive mismatches between shelf labels and register prices at Dollar General, Family Dollar, 7-Eleven and Circle K.
Congressional letter cites systemic failures
The lawmakers wrote that the documented violations are not isolated to a geographic area or a handful of stores, but appear to result from systemic failure within corporate operations. An investigation published in December found Dollar General failed more than 4,300 government price-accuracy inspections in 23 states over a three-year period on items such as peanut butter, spaghetti sauce and vitamins. Family Dollar failed 2,100 inspections in 20 states over the same period. A second investigation published last month found a similar pattern at 7-Eleven and Circle K, with overcharges for snacks, beverages, toiletries, tobacco, medications and gasoline.
FTC lawsuit against Dollar General
The congressional letter was addressed to FTC Chair Andrew N Ferguson and sent two days after the agency, along with 20 states, filed a federal lawsuit accusing Dollar General of a "pattern of inaccurate pricing" affecting millions of purchases. The lawsuit claims the company knew about the problem for years without correcting it. Dollar General said it would defend the litigation vigorously and aims for 100% price accuracy.
Lawmakers push for broader probe
While welcoming the FTC lawsuit, the lawmakers said the widespread nature of the issue warrants a full-scope probe. The letter comes as affordability dominates the midterm election, with voters citing gas prices, grocery prices and living expenses as top concerns. Representative Nikki Budzinski of Illinois, the letter's lead author, said gas prices in her district are at $4.50 a gallon and any uptick forces families to choose between filling their gas tank or their grocery basket. Budzinski noted that previous requests to the CEOs of Dollar General and Family Dollar for internal pricing documents went unanswered, prompting the FTC referral.
Personal experience highlights impact
For Representative Shontel Brown of Ohio, the issue is personal. She recently visited a Dollar General in her district and found the register total did not match the advertised price. When she questioned the discrepancy, a cashier told her the system often overcharges for soda. Brown said she has the luxury of not counting every dollar, but many constituents do not, making such overcharges especially harmful in underserved neighborhoods where these stores are often the sole option for essentials.
