Menards to pay $632,000 in Minnesota settlement over rebate program, pandemic pricing

Menards has agreed to a settlement of over $632,000 with Minnesota and nine other states following allegations of deceptive rebate practices and price gouging during the COVID-19 pandemic. The settlement, filed in Ramsey County District Court, resolves claims that Menards failed to clearly disclose limitations of its “merchandise credit check program,” leading consumers to believe they were receiving immediate discounts when, in fact, rebates were only available as in-store credit with a mail-in submission process. Authorities also alleged that Menards advertised rebates as direct discounts, such as “11% off,” and did not clearly state that the credits could not be used for online purchases.

Additionally, the lawsuit addressed claims of price gouging during the pandemic, alleging that Menards raised prices on essential goods like rubbing alcohol, garbage bags, and dish soap in violation of a 2020 executive order. While Menards denied wrongdoing in both cases, they agreed to the settlement terms, which include refraining from misleading rebate advertising in the future and avoiding excessive pricing of essential goods during emergencies. The company must now clearly state all rebate limitations, including application processes, deadlines, and processing times.

Minnesota will receive $632,167.13 from the settlement, which will be used for consumer protection, education, or redress, as well as litigation or local consumer aid funds.

(Source：Twincities)