Thirty-four members of Congress are calling on the Federal Trade Commission to investigate reports of widespread overcharging by some of America’s most-recognized brand-name retailers. The 28 October letter to the FTC comes in direct response to Guardian investigations of four of the nation’s largest dollar-store and convenience-store chains. Both investigations revealed pervasive mismatches between shelf labels and register prices.
The first, published in December, found that Dollar General had 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 Flintstone vitamins. Its smaller rival, Family Dollar, failed 2,100 price inspections in 20 states over the same period. The second, published last month, found a similar pattern at convenience store chains 7-Eleven and Circle K.
Consumer complaints, along with state and local inspections, revealed overcharges for snacks, beverages, toiletries, tobacco and medications. In addition, some stores charged more at the pump for gasoline than the prices displayed on their big road-facing signs. The letter, written by US House Democrats from 17 states and the District of Columbia, was addressed to FTC chair Andrew N Ferguson, a Trump appointee.
It was sent two days after the FTC, along with 20 states, filed a federal lawsuit accusing Dollar General of a “pattern of inaccurate pricing” that “affects millions of purchases”. The lawsuit claims the company knew about the problem for years without correcting it. Dollar General, in a statement, vowed to “defend this litigation vigorously”, saying it aims for 100% price accuracy and that it cooperated with the FTC’s investigation.
In a recent Harris Poll conducted for the Guardian, voters listed gas prices, grocery prices and living expenses as their top three election issues. In another poll, released by AP-Norc Center for Public Affairs Research, nearly 80% of voters disapproved of Donald Trump’s handling of the cost of living. Neither company complied, she said, “so we’re taking the next step of going to the FTC and asking them to do enforcement.” The federal agency is charged with policing unfair, deceptive and anti-competitive business practices.
The Guardian has contacted the FTC and the four retail chains for comment. Budzinski and her co-authors noted that many of their constituents live too far to walk or drive to independent grocery stores or chain supermarkets. A Dollar General or 7-Eleven might be the closest place for them to buy food.
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