Five Below agrees to pay $179,500 settlement over alleged Michigan pricing violations

Discount store chain Five Below has agreed to a settlement with the state of Michigan over allegations that the company's scanners overcharged consumers and that it failed to clearly display item prices.

In November 2025, Michigan Attorney General Dana Nessel sent a notice of intended action to the retailer, stating that the Michigan Department of Agriculture and Rural Development documented at least 30 instances of alleged overcharging and/or failure to display price tags since June 2025, violating the Michigan Shopping Reform and Modernization Act and the Michigan Consumer Protection Act. MDARD says 18 of those instances were reported between Aug. 3, 2025, and Nov. 5, 2025. 

Nessel alleges that between June 5, 2025, and Nov. 5, 2025, state investigators documented items labeled $5 that rang up at the register as $6 or $7.  

Around half of the stores are located in Southeast Michigan, including Ann Arbor (Washtenaw Avenue and Maple Road), Novi, Allen Park, Farmington Hills, Northville, Orion, Bloomfield Hills and Brighton.

As part of the settlement, Five Below, which Nessel said has cooperated during this process, will "implement and maintain policies and protocols intended to ensure ongoing pricing accuracy and compliance with Michigan law," including adding additional staff hours to "pricing accuracy, enhancing training on pricing, and establishing a procedure for internal pricing audits," according to Nessel. 

The discount chain will also face quarterly pricing audits by an independent auditor for one year, as well as enhanced penalties for repeat pricing violations for the next three years, Nessel said. 

"Michigan consumers must be able to trust that the prices they see on the shelves match what they are actually being charged," Nessel said in a statement. "This agreement holds Five Below to a high standard of accountability and ensures they take concrete steps to improve their business practices moving forward."  

Nessel says Five Below has agreed to pay the state of Michigan $179,500, of which $50,000 will go to MDARD to cover investigation costs. The remaining balance will be used to fund independent audits, with the rest to be distributed to the Department of the Attorney General, according to Nessel.