Dollar-stores overcharge customers while promising low prices
Regulation, Enforcement, and Fines
- Many see the core problem as weak, under‑resourced regulation rather than lack of laws: NC’s $5k/inspection cap is viewed as a “cost of doing business,” especially with rare inspections.
- Others argue this is regulatory capture if industry lobbying kept penalties low or weakened them over time.
- Suggested fixes:
- Escalating fines for repeat violations, potentially up to % of revenue/profit.
- Treating systemic mismatches as fraud with possible criminal liability for executives.
- “Bounty hunter” / qui tam models where customers or employees share in penalties.
- Aggressive inspection strategies (multiple inspections per day, or closing stores that exceed error thresholds).
Legal Status of Shelf Prices
- Long subthread on “invitation to treat” vs binding offer:
- In common‑law theory, shelf displays invite the customer to make an offer; the contract is formed at checkout.
- Several commenters note many US states effectively treat the displayed price as binding in practice, especially when systematic, not one‑off, discrepancies occur.
- Debate over whether “mistakes” (old tags, misprints) should excuse retailers; some say occasional errors are inevitable, others say that if you put up a number, you should be legally bound to it.
Customer Experience and Power Imbalance
- Practically, catching overcharges requires time, vigilance, confrontation with staff, and often long waits for a manager—costly for low‑income, time‑poor shoppers.
- Social pressure (holding up a line, fear of conflict, being labeled “difficult”) further suppresses complaints.
- Some report smooth corrections and even free items; others report being yelled at or refused adjustments.
Economics of Dollar Stores: Convenience vs Exploitation
- Two competing framings:
- Convenience: they are often the only or closest store in rural and low‑income areas; travel cost and time can easily outweigh a few cents per item.
- Exploitation: per‑unit prices are often far higher than supermarkets; small package sizes plus cash‑flow constraints mean poor shoppers pay more over time (“Boots theory” of poverty).
- Disagreement over whether dollar stores are killing local grocers or simply filling already‑underserved markets; some cite studies showing rural grocers closing after dollar stores arrive, others blame grocers’ product mix or management.
Technology & Process Proposals
- E‑ink shelf labels and store apps to keep shelf and register prices in sync are seen as likely future; concerns about dynamic pricing and difficulty proving discrepancies.
- Some argue this is mostly understaffing and bad internal processes (one clerk doing everything), not inherently “impossible” to fix.
Private Equity and Corporate Incentives
- Strong thread blaming private equity and financialization: “slash staff, squeeze margin, treat fines as a line item,” especially in essential services.
- Counter‑arguments note that low reported margins and weak returns in retail suggest shareholders are not obviously over‑rewarded; the deeper issue may be market structure and lack of competition.
Comparisons and Norms Elsewhere
- Multiple examples of stricter regimes:
- States (e.g. MA, MI) where overcharges must be refunded plus a bonus/free item.
- Policies where mispriced items are free or heavily discounted, creating strong incentives to fix errors.
- Australian/UK approaches where the lowest displayed price must be honored and regulators are more aggressive.
- Many conclude US practice tolerates too much “predation” and relies on individual shoppers to police behavior that regulators and courts should be addressing structurally.