Menard Inc., which operates the Menards home improvement retail chain, has agreed to pay $4.25 million as part of a multistate settlement addressing claims of deceptive advertising and price gouging. Minnesota will receive over $630,000 from the agreement.
The investigation by several states found issues with Menards’s sales practices, particularly regarding its “11% Rebate Program.” According to officials, advertisements for the program suggested that customers would receive an 11% discount on purchases, but instead they were offered limited rebates or in-store credit for future transactions.
“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.”
Under terms filed in Ramsey County District Court, Menards will implement changes to its advertising and sales practices.
Minnesota joined Illinois, Iowa, Wisconsin, Arizona, Kansas, Michigan, Nebraska, Ohio, and South Dakota in negotiating this settlement.
