Attorney General Raoul Secures $4.25 Million Menards Settlement
Multistate lawsuit resolves deceptive marketing claims against Menards over its 11% Rebate Program for home improvement products.
Chicago – Attorney General Raoul today announced a $4.25 million multistate settlement with home improvement retail chain Menard Inc. (Menards). The bipartisan settlement resolves claims that the company deceptively marketed its merchandise credit check program, commonly known as the Menards 11% Rebate Program.
Raoul co-led a coalition of attorneys general in investigating a number of 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.
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“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,” Raoul said. “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.”
Raoul and the attorneys general allege that Menards’ advertised prices reflected an 11% discount, which falsely implied that customers could realize savings at the time of purchase. According to the attorneys general, Menards failed to appropriately disclose the details of the rebate program, which were detailed in small print. The attorneys general also allege that Menards engaged in price gouging during the COVID-19 pandemic by raising prices on a few important items, 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 disclosing limitations of the rebate program and disclosing 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 the multistate group, which includes a payment of $946,633.61 to Illinois.
Joining Raoul in the bipartisan settlement are the attorneys general of Minnesota, Wisconsin, Iowa, Arizona, Kansas, Michigan, Nebraska, Ohio and South Dakota.
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