Ohio reaches multimillion settlement with national retailer accused of deceiving customers with ‘discounts’
In a multi-state settlement, including Ohio, a national retailer will have to pay $4.25 million due to deceptive advertising and discounts.
According to Ohio Attorney General Dave Yost, Menards’ marketing deceived customers into thinking they would be receiving 11% off of everything in an immediate discount.
An investigation by Ohio and nine other states found that the home improvement store gave “shoppers the impression that they would get an immediate discount at the register, but the savings actually came later in the form of in-store merchandise credit,” says the OAJ’s website.
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“Fine print shouldn’t cancel out big promises,” said Yost. “If a deal isn’t an immediate discount, companies need to say that plainly so consumers can make informed choices.”
The following allegations were made against Menard’s:
- Advertised “11% OFF” or “11% OFF EVERYTHING” in a way that suggested an instant price cut, even though customers received only a rebate to use on future purchases.
- Listed prices that already reflected an 11% discount, reinforcing the idea that shoppers were saving money at checkout.
- Failed to clearly explain important limits of the rebate program, burying key details in fine print.
- Told customers that “Rebates International” was a separate company handling rebates, even though it is operated by Menards itself.
As part of this settlement, Ohio will receive $365,173.05, which will go to the Attorney General’s Consumer Protection Enforcement. Menard’s has also agreed to change how it advertises and runs its rebate program, discontinuing ads suggesting that store-credit rebates provide an immediate discount and clearly explaining the rules.
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