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Right before the holidays, the big-box retailer Menards entered into an Assurance of Voluntary Compliance with the Attorneys General of ten states, resolving allegations that the company misled consumers about its rebate program and engaged in price-gouging during the pandemic. As part of the settlement, Menards agreed to pay $4.25 million.
The states alleged that Menards misled consumers about the terms of its "Menards 11% Rebate Program." They argued that Menards advertising of its rebate program communicated that consumers received a discount at the point-of-purchase when, in fact, consumers only received an in-store merchandise credit for future purchases. The states alleged, for example, that Menards advertised its rebate program as providing "11% off" and also advertised the final prices of products as the product price minus the rebate.
In the Assurance of Voluntary Compliance, Menards agreed that, in the future, it will not advertise a program that offers store credit as one that provides a discount or a cash back on a purchase. And, specifically, Menards agreed not to advertise a store credit as a percentage "off" a price or to advertise a store credit as a price minus the store credit amount – even with language such as "price after rebate."
Certain states also charged that, during the pandemic, Menards increased its prices in violation of applicable law. In the Assurance, Menards agreed that it would not do that in the future.
In announcing the settlement, Illinois Attorney General Raoul said, "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. Customers deserve to know what they will be charged when they make a purchase, without deceptive deals and fine print. I'm pleased that this settlement requires Menards to end these practices, and I will continue to work to ensure Illinois consumers are treated fairly."
Menards entered into the settlement with Arizona, Illinois, Iowa, Kansas, Michigan, Minnesota, Nebraska, Ohio, South Dakota, and Wisconsin.
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