Family Dollar reaches $63 million settlement with US FTC, states over customer overcharges

Nov 12 (Reuters) - Family Dollar reached a $63 million settlement with the US Federal Trade Commission and 17 states of allegations that the discount retailer overcharged shoppers, including by charging more at the register than it advertises on its website and mobile app.

According to settlement papers filed on Thursday in the Norfolk, Virginia federal court, Family Dollar will offer $40 million of restitution and $20 million of future discounts to eligible shoppers, and pay $3 million to the states.

The FTC and states accused Family Dollar of violating federal and state laws against deceptive practices, "betraying the trust" of millions of American consumers who rely on it for essentials, and "imposing significant financial harm on the communities that can least afford it."

Family Dollar did not admit or deny wrongdoing in agreeing to settle. The Chesapeake, Virginia-based company and its lawyer did not immediately respond to requests for comment. Family Dollar has more than 8,000 stores, according to its website.