If you’ve never heard of Menards, well, you probably don’t call soda “pop” or know the best place to hunker down during a tornado warning. You likely head to Lowe’s or Home Depot when you’re ready to tackle your next renovation, but many Midwesterners go to Menards, a home improvement chain with more than 300 stores across 15 states. The big box retailer is famous for its “Save big money at Menards” jingle, and its founder, John Menard Jr., is the second-richest person in Wisconsin, according to Forbes. He has an estimated net worth of more than $20 billion, but his company just reached a multi-million dollar settlement with several states over deceptive marketing practices.
Many of us have fallen victim to shady retailer practices at one time or another. Deceptive marketing ploys can include bait and switch ploys, hidden fees, bad warranties, and even counterfeit goods. Menards did not admit to any wrongdoing, but 10 states, including Arizona, Illinois, Iowa, Kansas, Michigan, Minnesota, Nebraska, Ohio, South Dakota, and Wisconsin, alleged that the company intended to deceive customers with its 11% Rebate Program and engaged in other price gouging practices during the COVID-19 pandemic. To resolve the allegations, Menards will pay $4.25 million in total to the states involved in the lawsuit.
What is the 11% Rebate Program?
We all like to save a few dollars when we shop, but there’s a difference between a discount and a rebate. A discount is applied at the point of purchase and immediately saves you money. When a rebate is offered, the customer typically pays full price and achieves savings at a later date, usually after mailing in a card or applying for the rebate online. According to Illinois Attorney General Kwame Raoul’s office, Menards’ 11% Rebate Program led customers to believe they’d be receiving an immediate discount at the point of purchase. The lawsuit also alleged that the home improvement store’s prices appeared to be reduced by 11%, leading customers to believe that they were achieving extra savings.
Additionally, after customers filled out the rebate form and mailed it in, they didn’t actually receive any money back. Instead, they received an in-store credit that could be used on a future purchase. The suit also alleges that Menard intentionally tried to make customers believe that the rebate forms were being sent to another company, when in fact, Rebates International is part of Menards…