Menards settles with several states in suit over 11% Rebate Program, COVID price gouging
The Minnesota Attorney General's Office says Menards, the Wisconsin-based home improvement retailer, has reached a $4.25 million settlement with several states to "resolve claims" of deceptive marketing practices in its popular "11% Rebate Program" and pandemic-era price gouging.
Attorney General Keith Ellison said Minnesota will receive $632,167 of the settlement filed on Wednesday in Ramsey County with parent company Menard Inc., headquartered in Eau Claire, Wisconsin. The company's home state was also involved in the suit, along with Arizona, Illinois, Iowa, Kansas, Michigan, Nebraska, Ohio and South Dakota.
According to court documents, the attorneys general alleged Menards deceived customers with its promise of saving "big money" through the rebate program because there is actually no real point-of-purchase discount. Instead, customers must fill out a rebate form to eventually receive in-store credit on subsequent purchases.
The suit also alleged the company obscured the fact that Rebates International — the name on the address of where rebate forms are sent — is part of Menard Inc. and not a separate company.
"An ad that says '11% OFF EVERYTHING' clearly implies that you can buy goods at an 11% discount, not that you can participate in a limited rebate program or get in-store credit for future purchases," Ellison said in a news release. "Today's settlement holds Menards accountable for how they advertised their rebate program in the past and ensures that program will be more honest in the future."
The suit also alleged Menard Inc. "engaged in price gouging during the COVID-19 pandemic by raising prices on items such as rubbing alcohol, garbage bags, dish soap, and neoprene gloves."
Ellison said Menard Inc. agreed to make several "advertising and sales practices" changes as part of the settlement, including "clearly and conspicuously disclosing material limitations of the rebate program," making it clear Rebates International and Menards are one and the same and abstaining from price gouging "during a period of abnormal economic disruption."
According to Forbes, Menards is the third-largest home improvement chain in the U.S., with Home Depot and Lowe's in the top two spots. The company has 300-plus stores in 15 states, with most in the Midwest.
WCCO has reached out to Menard Inc. for comment.