MADISON, Wis. (WMTV) – A more than $4 million multistate settlement was reached with Menards Wednesday over deceptive rebate advertising and price gouging, Wisconsin officials announced Wednesday.

Attorney General Josh Kaul and the Wisconsin Department of Agriculture, Trade and Consumer Protection said the settlement resolves claims that Menards falsely marketed its merchandise credit check program, also known as the Menards’ 11% Rebate Program, and allowed price gouging during the COVID-19 pandemic.

Wisconsin will receive $750,000 in the settlement, according to DATCP.

“Figuring out how much you’ll have to pay to buy something should be straightforward,” Kaul said. “It shouldn’t be an adventure.”

Investigators involved in the multi-state lawsuit, which included Illinois and Minnesota, reviewed several aspects of Menards’ sales practices.

Wisconsin officials said investigators reviewed allegations that Menards’ use of the 11% off rebate program falsely claimed a point-of purchase discount, when the home improvement chain only offered in-store merchandise credit for future use, among other advertising claims.

Officials also investigated price gouging on four-gallon bottles of purified water at two locations in Wisconsin, including in Johnson Creek.

As part of the settlement, Menards will need to follow several advertising and sales practices. The terms, noted by DATCP, are as follows (wording theirs):

• Not advertising or representing that any program that offers store credit for making purchases at Menards provides consumers with a point-of-purchase discount;
• Clearly and conspicuously disclosing material limitations of the rebate program and disclosing all applicable terms and conditions of the rebate program in a readily available manner;
• Investigating whether and to what extent it can offer a process by which consumers can safely and securely submit rebate application forms and receipts online;
• Investigating whether and to what extent it can offer a process by which consumers can safely and securely redeem their rebate for online purchases;
• Clearly and conspicuously disclosing that Menards is doing business as Rebates International;
• Allowing consumers at least one year from the date of purchase to submit a rebate claim;
• Updating their online rebate tracker with information about the rebate claim within 48 hours of the application being input into Menards’ system;
• Updating their online rebate tracker with additional information about the rebate, including updates about returns affecting the rebate; and
• Not engaging in price gouging during a period of abnormal economic disruption.

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