OHIO — Ohio is part of a multistate $4.25 million settlement with a major home improvement retailer, according to Ohio Attorney General Dave Yost.
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The settlement is with the Wisconsin-based company, Menards, over allegations of deceptive rebate advertising practices.
An investigation found that Menards’ advertising misled consumers into believing they would receive immediate discounts at the register; however, the savings were provided later as in-store merchandise credit.
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“Fine print shouldn’t cancel out big promises,” Yost said. “If a deal isn’t an immediate discount, companies need to say that plainly so consumers can make informed choices.”
The states involved in this investigation found several concerning practices in Menards’ marketing and sales strategies.
- Advertised “11% OFF” or “11% OFF EVERYTHING” in a way that suggested an instant price cut
- Listed prices that already reflected an 11% discount
- Didn’t clearly explain important limits of the rebate program
- Told customers that “Rebates International” was a separate company handling rebates, even though it is operated by Menards
Yost said the company agreed to revise its advertising practices as part of the settlement.
Some of those revisions include discontinuing misleading ads that imply immediate discounts and ensuring the terms and conditions of rebates are plainly stated.
The company also plans to enhance online rebate submission processes and update its online rebate tracker promptly after entries are made.
The State of Ohio will receive approximately $365,173.05 from the settlement, which will be allocated to the Attorney General’s Consumer Protection Enforcement Fund.
Yost was joined by the attorneys general of Arizona, Illinois, Iowa, Kansas, Michigan, Minnesota, Nebraska, South Dakota, and Wisconsin.
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