Family Dollar, the Federal Trade Commission and 17 states — including Pennsylvania — have reached a $63 million settlement over allegations the discount retailer routinely charged customers more at the register than the advertised prices.

The proposed order prohibits Family Dollar from misrepresenting prices of goods and requires the privately owned New York City-based company to establish a pricing accuracy program that is independently assessed and annually certified.

“Today’s order will ensure Family Dollar stops deceiving consumers about its prices and returns money to consumers harmed by these practices,” Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said in a prepared statement.

Under the proposed order, Family Dollar will be required to create a $40 million fund to compensate eligible consumers and a $20 million discount program for Family Dollar customers. Customers must be notified of the fund in its stores and on its digital platforms.

The FTC complaint and stipulated final order was filed in the U.S. District Court for the Eastern District of Virginia.

The complaint alleges that consumers from across the country consistently reported widespread pricing discrepancies; regulatory inspections confirmed that prices at checkout were often higher than advertised. In the last five years, state and local regulators cited Family Dollar for thousands of pricing violations, resulting in fines exceeding $3 million, according to the FTC.

In related legal action, the FTC and 20 states last month filed a 29-count civil lawsuit against Goodlettsville, Tenn.-based Dollar General, a competing discount retailer, which contains allegations similar to those in the Dollar Tree complaint. The FTC and the states are seeking a permanent injunction, unspecified monetary relief and other measures against the publicly traded retailer.

That litigation is continuing in the U.S. Middle District Court of Tennessee.

Both Family Dollar and Dollar General market to rural, low-income areas with low advertised prices. Family Dollar has about 255 stores in Pennsylvania.

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