Illinois is set to receive a chunk of a major, multi-million dollar settlement against popular home improvement chain Menards, with the suit claiming the retailer made misleading and deceptive claims about how much money customers could save.
A Wednesday announcement from Illinois Attorney General Kwame Raoul’s office says the program, which claimed “11% off,” falsely advertised a point-of-purchase discount for customers when it actually only offered an in-store credit for future sales.
The suit also said Menards’ prices reflected an 11% discount, leading customers to believe they were saving money.
“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 in the announcement. “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.”
The suit, which includes attorneys general from Minnesota, Wisconsin, Iowa, Arizona, Kansas, Michigan, Nebraska, Ohio and South Dakota, also alleged Menards’ failed to appropriately disclose the details of the rebate program, which were listed in small print.
It also claims the home improvement retailer engaged in price gouging during the COVID-19 pandemic by raising prices on several important items at the time, like garbage bags, isopropyl alcohol, dish soap and neoprene gloves.
Under the terms of the settlement, Menards must make 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.
According to Raoul’s office, Menard’s is set to pay $4.25 million to the multistate group. $946,633.61 will go to Illinois, Raoul’s office said.
NBC 5 Responds reached out to Raoul’s office to clarify where the settlement money for Illinois will go, and if consumers will receive any part of it.
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