AG Nessel cracking down on alleged price-gouging at Menards
Retailer sent cease and desist letter following investigation
The Michigan Attorney General is cracking down on alleged price-gouging at Menards during the COVID-19 outbreak.
A cease and desist letter sent to the retailer on Tuesday states that it appears to be exploiting public fear about the new coronavirus by raising prices — doubling the price on bleach, for example.
Investigators for the Attorney General’s Office began visiting Menards stores last week in response to a number of complaints about price-gouging. At one store, a 121 oz. container of Clorox bleach had a shelf price of $4.47. The shelf was bare. But the store also had a bleach display listing the product at $8.99, the AG’s office said.
“Here, it appears Menards took affirmative steps to not only grossly elevate the price of the bleach product, but also to give special attention to it at that elevated price,” the cease and desist letter states.
The AG’s office stated that it also found Menards was offering a $20 rebate on two-packs of 3M face masks — priced at $39.95 — which some people are using for protection during the outbreak. That far exceeds the store’s 11 percent rebate program, leading to concerns that the masks are being used to drive additional purchases at Menards, according to the AG’s office.
Menards is the first business to be sent a cease and desist letter for alleged price-gouging in Michigan during the COVID-19 outbreak. A large number of other businesses are being investigated due to similar complaints, and could also be on the receiving end of the order, according to the AG’s office.
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Menards is the first business to be sent a cease and desist letter for alleged price-gouging in Michigan during the COVID-19 outbreak. A large number of others are being investigated due to similar complaints, and could also be on the receiving end of such an order, according to the AG’s office. As of Tuesday, the AG’s office reported receiving 363 complaints from consumers alleging price-gouging related to COVID-19, of which 18 of them were for Menards.
“Big box stores are not immune to the Michigan Consumer Protection Act or the Governor’s Executive Order,” Attorney General Dana Nessel stated in a news release. “Large corporations must also play by the rules, and my office will work diligently to ensure this state’s consumers are treated fairly and not abused by businesses seeking to unlawfully jack prices up to line their pockets with profits at the expense of the public during this time of great need.”
Menards was given 10 days to respond to the letter before the AG’s office further investigates and possibly initiates legal action. Menards and the State of Michigan could also agree to an assurance of voluntary compliance, the AG’s office said.
MediaNews Group left a message with Menards seeking comment Wednesday but hasn’t heard back yet.
Residents are encouraged to report alleged price-gouging and other violations of the Michigan Consumer Protection Act online at https://tinyurl. com/qpl9ze or by calling 877-765-8388.
Meanwhile, a 3-bill, bipartisan package was introduced last week in the Michigan Senate to create more tools to curb pricegouging on consumer goods during emergency declarations or other market disruptions. The proposed legislature includes enhanced investigation tools, additional criminal penalties and expanded enforcement efforts.