Hard to make a judgment here w/o all the details. On the surface, sounds like bad management at that store.
Why not:
Manager: "Frank, we need you to slow down on the price matching. If you feel you must match under our policy, alert a manager for review. At least for the time being. If you can't do that, then we'll have to move you off the register to another area."
Frank: "Ok."
PR crisis averted.
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