(The Center Square) – Wisconsin-based Menards has agreed to pay a combined $4.25 million to settle a lawsuit from 10 states related to deceptive marketing for its 11% rebate.
The states attorneys argued that the Eau Claire retailer misled consumers in some cases that the 11% rebate would be a discount that customers would receive at checkout instead of a rebate that needed to be mailed in and returned for a later store credit.
The company agreed to make payments to Wisconsin, Illinois, Minnesota, Iowa, Arizona, Kansas, Michigan, Nebraska, Ohio and South Dakota.
It also agreed to several terms, including allowing one year for customers to return rebate forms and investigating how to create an option for consumers to safely and securely submit rebates online instead of mailing in the forms and receipts.
“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,” Illinois Attorney General Kwame Raoul said in a statement. “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.”
Menards agreed to pay Wisconsin $450,000 and Illinois nearly $947,000, Iowa nearly $447,000 while each of the 10 states will receive payments.