MADISON, WI (WSAU-WAOW) A $4.25 million multistate settlement has been reached with Menards, over allegations of deceptive marketing practices. The Wisconsin Department of Agriculture, Trade and Consumer Protection and Attorney General Josh Kaul announced the settlement, which resolves claims related to Menards’ merchandise credit check program and price gouging during the COVID-19 pandemic.
The investigation revealed several issues with Menards’ sales practices. These included misleading advertising of a supposed 11% discount and failure to disclose limitations of their rebate program. Menards also allegedly engaged in price gouging by raising prices on water during the pandemic at Wisconsin locations in Onalaska and Johnson Creek.
“This settlement reinforces a message in Wisconsin law: practices like deceptive marketing or price gouging during a declared period of abnormal economic disruption are unfair to consumers,” said Randy Romanski, Secretary of the Wisconsin Department of Agriculture, Trade and Consumer Protection.
Menards agreed to several changes in their practices, including not advertising rebates as point-of-purchase discounts and ensuring clear disclosure of rebate terms. They will also investigate online processes for rebate submissions and redemptions and update their rebate tracker promptly.
Wisconsin will receive over $750,000 from the settlement. Minnesota, Iowa and Illinois were also part of the lawsuit.
Comments