AutoZone Inc., Advance Auto Reach Settlement With New York Over Illegal Charges.

New York State Attorney General Eliot Spitzer announced a settlement with two national retail auto parts chains for overcharging consumers who do not turn in old automobile batteries.

The agreement with AutoZone Inc. and Advance Auto Parts Inc. will allow New York customers who paid more than $5 for a battery return incentive fee to receive a refund for the overcharge. The two companies have paid more than $215,000 in restitution and penalties for violating a state law.

To encourage the recycling of used batteries, both companies charge customers a fee if they buy a new battery without turning in an old one. New York law, however, limits such fees to $5. Spitzer said the two companies had been collecting $8 fees since 2000. "The Legislature set the fee for lead-acid batteries at a level that would encourage consumers to turn in old car batteries but protect against unreasonable windfalls by retailers," he said.

In response to Spitzer's announcement, Roanoke, Va.-based Advance Auto issued a statement confirming the settlement and justifying the fee program for its benefits to the environment.

The two companies stopped overcharging in May, when Spitzer's office first contacted them..