SPRINGFIELD, Ill. (WGEM/Gray News) – A multistate settlement has been reached with home improvement retail chain Menards over its advertising practices.
State officials in Illinois shared that the settlement resolves claims that the company deceptively marketed its merchandise credit check program, commonly known as the Menards 11% Rebate Program.
An investigation looked into several reported problems with Menards’ sales practices, including allegations that the company’s prolific use of “11% off” or “11% off everything” advertising falsely implied a point-of-purchase discount, when Menards actually only offered an in-store merchandise credit for future purchases.
“Menards’ deceptive marketing left many customers believing they were getting a discount, when, in fact, the store was only offering an in-store credit for future purchases,” Illinois Attorney General Kwame Raoul said. “Customers deserve to know what they will be charged when they make a purchase, without deceptive deals and fine print.”
The attorneys general also alleged that Menards engaged in price gouging during the COVID-19 pandemic by raising prices on important items at the time, such as garbage bags, isopropyl alcohol, dish soap and neoprene gloves in early 2020.
Under the terms of the settlement, Menards is required to make several changes to its advertising and sales practices, including:
No longer advertising or representing that customers will receive a discount when they make a purchase if the program really offers store credit for making purchases at Menards.
Clearly and conspicuously disclose limitations of the rebate program and disclose all applicable terms and conditions in a readily available manner.
Allowing consumers at least one year from the date of purchase to submit a rebate claim.
Updating the online rebate tracker with information about the rebate claim within 48 hours of the application being put into Menards’ system.
Updating the online rebate tracker with additional information about the rebate, including information about returns affecting the rebate.
Investigating whether and to what extent Menards can offer a process that allows consumers to safely and securely submit online rebate application forms and receipts.
Investigating whether and to what extent Menards can offer a process that allows consumers to safely and securely redeem rebates for online purchases.
A prohibition from engaging in price gouging during a period of abnormal economic disruption.
As part of the settlement, the company will pay $4.25 million to states that also included Minnesota, Wisconsin, Iowa, Arizona, Kansas, Michigan, Nebraska, Ohio and South Dakota.