Wisconsin DOJ Resolves Consumer Complaint with Menards
The State of Wisconsin has reached a significant settlement with Menards, a well-known home improvement retailer. The announcement was made by Attorney General Josh Kaul, revealing that Menards will pay $750,000 as part of a multistate consumer protection resolution.
Details of the Settlement
The total amount to be paid by Menards across ten states amounts to $4.25 million. This settlement addresses consumer complaints related to the company’s rebate program, which had been criticized as misleading. Under the program, customers could mail back a rebate form for an advertised 11 percent discount, but Attorney General Kaul indicated this constituted false advertising.
Concerns Over Business Practices
- The complaints centered on unfair business practices.
- Allegations also included price gouging during the early COVID-19 pandemic.
Kaul stated that the state’s focus considered whether the discounts were depicted as point-of-sale discounts rather than as rebates.
Proposed Changes to Rebate Process
In accordance with the settlement, Menards has committed to improving its rebate process. The retailer will explore the implementation of an online option for submitting rebate claims. Currently, customers must mail rebate forms with their receipts, a process that will be revised.
- Customers will receive a full year to redeem their receipts.
- An online tracking system for rebate claims will be developed.
Consumer Protection Commitment
Attorney General Kaul emphasized that the settlement exemplifies his agency’s dedication to consumer protection, especially during challenging economic times. He noted the importance of fair and transparent pricing, stating that consumers should be treated with respect.
Legislative Approval and Fund Usage
The settlement will need approval from Wisconsin’s Joint Finance Committee, which is currently held by the GOP. However, a recent ruling by the Wisconsin Supreme Court may allow for direct payment without legislative review. Kaul expressed interest in utilizing the recovered funds to support consumer protection efforts by the Department of Justice.
About Menards
Menards, headquartered in Eau Claire, Wisconsin, is recognized for its catchy advertising jingle promoting savings. CEO John Menard is among the state’s wealthiest individuals and has been a significant donor to Republican candidates and political action committees.
Other States Involved
The lawsuit also includes settlement agreements with Arizona, Kansas, Illinois, Iowa, Michigan, Minnesota, Nebraska, Ohio, and South Dakota.
