House Democrats Urge FTC to Open Broad Probe Into Retail Overcharging

Thirty-four members of Congress are asking the Federal Trade Commission to investigate reports of widespread overcharging at several of the best-known retail chains in the United States. The letter, dated 28 October, was written by House Democrats from 17 states and the District of Columbia.

The request follows two Guardian investigations covering four large dollar-store and convenience-store chains. Both found frequent mismatches between the prices on shelf labels and the prices charged at the register.

The first investigation, published in December, found that Dollar General failed more than 4,300 government price-accuracy inspections in 23 states over three years. The affected items included peanut butter, spaghetti sauce and Flintstone vitamins. Its smaller rival, Family Dollar, failed 2,100 inspections in 20 states over the same period.

The second investigation, published last month, turned to convenience chains 7-Eleven and Circle K. Consumer complaints and state and local inspections showed overcharges on snacks, beverages, toiletries, tobacco and medications. Some stores also charged more at the pump for gasoline than the prices shown on their large road-facing signs.

"These reports show that these incidents are not isolated to a geographic area or to a handful of stores," the lawmakers wrote. They said the scale of the violations appears to reflect "systemic failure within corporate operations" that may leave customers overpaying without knowing it. All four companies have told the Guardian in written statements that they try to keep register prices consistent with shelf prices.

The letter is addressed to FTC chair Andrew N Ferguson, a Trump appointee. It arrived two days after the FTC and 20 states filed a federal lawsuit accusing Dollar General of a "pattern of inaccurate pricing" that "affects millions of purchases". The suit claims the company knew of the problem for years without fixing it. Dollar General said it will "defend this litigation vigorously", that it aims for 100% price accuracy, and that it cooperated with the FTC's investigation. The lawmakers called the lawsuit positive but said the issue's reach "warrants a full-scope probe".

Representative Nikki Budzinski of Illinois, the letter's lead author, said she and 29 colleagues wrote in December to the chief executives of Dollar General and Family Dollar seeking internal documents on the pricing gaps. Neither company complied, she said, so the group is now asking the FTC to take enforcement action. Budzinski said gas prices in her district are $4.50 a gallon, and that even small increases force families to choose between filling a tank and filling a grocery basket.

The timing comes on the eve of a midterm election in which affordability has become a leading concern. In a Harris Poll conducted for the Guardian, voters named gas prices, grocery prices and living expenses as their top three issues. A separate AP-Norc poll found nearly 80% of voters disapproved of Donald Trump's handling of the cost of living.

The letter also stresses that many constituents live far from independent grocers or supermarkets, leaving a Dollar General or 7-Eleven as the nearest place to buy food. Because of that, the lawmakers wrote, these companies hold "a unique position of trust and responsibility".

For Representative Shontel Brown of Ohio, the issue is personal. She said she tried to buy soda earlier this year at a Dollar General in Warrensville Heights, but the register total did not match the advertised sale price and her coupons. According to Brown, the cashier told her the system does that often with soda, and she left without buying it. She said she can afford to overlook a few dollars, but many of her constituents cannot.