ST. PAUL, Minn. (FOX 9) - Menards has agreed to a $4.25 million settlement with several states, including Minnesota, over its "11% off everything" rebate program.
Menards' advertising practices under scrutiny
What we know:
The settlement resolves claims that Menards misled customers with its "11% off everything" advertising, which implied customers would get immediate savings when, in reality, the savings were offered in future in-store credits.
Menards was also accused of price-gouging during the pandemic, raising the prices on items such as rubbing alcohol, dish soap, garbage bags, and neoprene gloves.
Menards settlement terms
What we know:
Minnesota will receive $632,167 for its split of the settlement with the Midwest home improvement chain. Other states involved in the lawsuit include Illinois, Iowa, Wisconsin, Arizona, Kansas, Michigan, Nebraska, Ohio, and South Dakota.
Menards will also change its advertising practices, ensuring clear disclosure of rebate program terms and prohibiting misleading discount representations. The company will also explore online rebate submissions and redemption:
- Not advertise any program that offers store credits as "discounts"
- Clearly disclose the limitations of rebate programs
- Give customers at least a year to submit a rebate claim
What they're saying:
Attorney General Keith Ellison, whose office represented Minnesota in the lawsuit, provided this statement on the settlement:
"It’s hard for Minnesotans to afford their lives when businesses are trying to deceive them," said Attorney General Ellison. "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. 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. Furthermore, it is disappointing that Menards took advantage of the fear and uncertainty during the height of the COVID-19 pandemic to jack up prices on consumers, so we are holding them accountable for that as well."
The Source: This story uses information from Attorney General Keith Ellison's Office.