Nov 12 (Reuters) - H&R Block ( HRB ) agreed to pay $7

million to settle multiple U.S. Federal Trade Commission

charges, including that it deceived many taxpayers into

believing they could file their taxes online for free.

Tuesday's settlement requires the largest U.S. tax

preparation service to disclose in advertising either the

percentage of taxpayers eligible for free products, or that a

majority does not qualify.

According to the FTC, H&R Block's ( HRB ) ads sometimes buried in fine

print that its "free" offer applied only to simple returns.

The settlement also resolved charges that the Kansas City,

Missouri-based company wasted time of customers who wanted to

downgrade to cheaper products by insisting they speak with

customer service by phone or chat rather than do it themselves,

and then reenter their tax information for the downgraded

products.

Customers who sought upgrades encountered no such obstacles

the FTC said.

The $7 million will be paid to customers. H&R Block ( HRB ) did not

admit or deny wrongdoing in agreeing to settle.

In a statement, the company said it will continue to work

with the FTC, and that its pricing is "fair and transparent."