MADISON (NBC 26) — Menards will pay $4.25 million, including more than $750,000 to Wisconsin, as part of a multi-state settlement resolving claims related to rebate advertising and price gouging during the COVID-19 pandemic.
That's according to a media release from the Wisconsin Department of Agriculture, Trade, and Consumer Protection.
The settlement addresses allegations that Menards "deceptively marketed its merchandise credit check program, commonly known as the 'Menards 11% Rebate Program,' and raised prices on four-gallon bottles of purified water at two Wisconsin locations during the pandemic.
According to the investigation, Menards falsely implied an immediate point-of-purchase discount related to its 11% rebate. Instead, customers received an in-store merchandise credit for future purchases.
Investigators also found that advertised prices reflected the 11% discount, potentially misleading consumers into believing they were receiving instant savings.
The settlement was co-led by Wisconsin, Minnesota, Illinois, and Iowa, and includes attorneys general from Arizona, Kansas, Michigan, Nebraska, Ohio, and South Dakota.
The states further alleged Menards failed to adequately disclose key limitations of the rebate program, including using small-print disclaimers that were removed from the discount representation. Menards also told customers that “Rebates International” was a separate entity, when it is part of the same company.
In addition, the investigation found Menards engaged in price gouging during the COVID-19 pandemic by raising prices on four-gallon bottles of purified water at stores in Onalaska and Johnson Creek.
“Figuring out how much you’ll have to pay to buy something should be straightforward,” Kaul said in a statement. “It shouldn’t be an adventure.”
Under the settlement terms, Menards agreed to make multiple changes to its advertising and sales practices. These include clearly disclosing that rebate programs offer store credit rather than point-of-purchase discounts, conspicuously listing all rebate limitations and terms, and disclosing that Menards does business as Rebates International.
