Menards

When it comes to home improvement stores if you live in the Midwest, it is not only Lowe’s and Home Depot, but also Menards. While having one of the best commercial jingles, Menards is my favorite home improvement store. I was fascinated by how big the lighting section was at the Waterloo location. Compared to the corporate out of state Lowe’s and Home Depot, Menards always felt closer to home. Being a Wisconsin based company, it feels good to support the next-door neighbor cheeseheads.

Unfortunately, Menards is not perfect. They have their rebates. For those unfamiliar, when you buy a product (i.e., paint) from them, you must physically fill out and mail them the rebate form for a better price, which is in-store credit. Anecdotally, it does not seem most send in the rebates leading to money left on the table. If you get the store credit, you now go back to Menards to buy something else and the process starts over. Being a tightwad, I always send in the rebate because I like to get what I deserve.

Despite this slight annoyance, I still love Menards. Unfortunately, this love does not stop Menards from playing fast and loose with their rebate program. Menards recently settled a lawsuit with the attorney generals of Illinois, Minnesota, Wisconsin, Iowa, Arizona, Kansas, Michigan, Nebraska, Ohio, and South Dakota. What was this lawsuit about? The rebate program, specifically the Menards “11% off everything” advertising. If you live in a state with Menards, you have watched or heard these advertisements. The issue for the lawsuit is this is not a point-of purchase discount but only in-store credit. These attorneys general also said Menards did not appropriately disclose the details of the rebate program. This settlement led to Menards discontinuing this practice.

The other part of this lawsuit is the aspect of price gouging. In the states with a Democrat attorney general, their press releases highlight forms of price gouging. When it comes to states with a Republican attorney general, price gouging is not mentioned. Maybe Menards only wanted to price gouge blue states, but I do not believe price gouging stops at state lines.

When it comes to states where price gouging was revealed like in Minnesota, their press release states investigated Menards engaging in price gouging during the COVID-19 pandemic by raising prices on items such as rubbing alcohol, garbage bags, dish soap, and neoprene gloves. Wisconsin noted price gouging on four-gallon bottles of purified water at two Menards locations. Because of these actions and through the settlement, Menards is prohibited from engaging in price gouging during a period of abnormal economic disruption. Menards was also not the only company or product (i.e. Amazon, eggs, KN95 masks) to allegedly price gouge or be price gouged during the COVID pandemic.

Price gouging laws during time of emergencies are common. Unfortunately, price gouging has taken place at times without an emergency. When few companies control a significant amount of market power, it is easier for them to get away with price gouging. With less competition, they do not have to worry about competitors undercutting them. Holding these companies accountable is important to protect consumers.

Living in a time with highly consolidated industries has led to people being taken advantage of. The economy has not always been this way. When competitive markets exist, businesses must compete ethically and morally for a consumer’s business. They cannot use market power to dominate. With fewer companies existing in specific industries, this Menards issue can happen. These companies do not have to compete for their customers’ respect when there are only a few places to go.

Despite my almost universal approval rating for Menards, a company like them can still be up to shenanigans. Whether it is in the home improvement, agriculture, and junk fees, laws are meant to protect people. No one should be at the mercy of unfair business practices. This accountability is vital to a healthy economy and a healthy democracy.

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