Menards to pay $4.25 million settlement after lawsuit claiming Covid price surging

Menards, a Wisconsin-based home improvement retailer, has agreed to a $4.25 million multistate settlement resolving allegations of deceptive marketing practices related to its 11% rebate program and price gouging during the COVID-19 pandemic. Attorneys general from ten states – Minnesota, Wisconsin, Illinois, Iowa, Arizona, Kansas, Michigan, Nebraska, Ohio, and South Dakota – argued that Menards falsely advertised an immediate discount with claims like “11% OFF EVERYTHING,” when it was actually a rebate offered as in-store credit for future purchases. The lawsuit also claimed Menards misrepresented its relationship with “Rebates International,” which handles rebate forms, as a separate entity.

Furthermore, the states alleged that Menards engaged in price gouging during the pandemic, increasing prices on essential items like rubbing alcohol and garbage bags. As part of the settlement, Menards is required to clearly disclose the limitations of its rebate program, refrain from price gouging during economic disruptions, and provide customers with at least one year to submit rebate claims.

Minnesota will receive $632,167.13 from the settlement, while Wisconsin will receive $450,000, Illinois nearly $947,000, and Iowa nearly $447,000, with the remaining funds distributed among the other states involved. Attorney General Keith Ellison stated the settlement “holds Menards accountable” and ensures the rebate program will be more transparent in the future.

(Source：Daily Express Us)