Menards will pay the state more than $632,000 in a settlement filed in Ramsey County District Court on Wednesday after several states claimed that the retailer misled or confused consumers about its rebate program and engaged in price gouging during the pandemic.

The settlement between the Minnesota Attorney General’s office and those of nine other states claims that the particulars of Menards’ rebate advertising practices were not disclosed and that the company raised prices on essential goods during the COVID-19 pandemic.

The Minnesota Attorney General’s office announced the deal, saying Menards denied wrongdoing but agreed to settlements with the attorneys general of Arizona, Illinois, Iowa, Kansas, Michigan, Minnesota, Nebraska, Ohio, South Dakota and Wisconsin.

Authorities alleged that Menards, based in Eau Claire, Wisconsin, failed to clearly disclose key limitations of its rebate program. The program was formally called the “merchandise credit check program.”

The nine states alleged that Menards did not adequately disclose that the rebate was “only an in-store credit on a future purchase that is only redeemable in-person at physical store locations, and that the (rebate) requires a mail-in rebate submission form.”

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The settlement said that some of the advertising about the rebate program labeled it “11% off” or listed the item’s actual price leading people to think the discount would be applied immediately at checkout. In addition, the lawsuit alleged that Menards didn’t clearly state that the rebate credits couldn’t be used online.

In the settlement, Menards agreed to no longer advertise in those ways. In the future, all limits to the rebate must be stated including how customers apply for the rebate, deadlines to submit the rebate and how long it typically takes to receive it.

In addition, the settlement addressed emergency pricing by the store during the pandemic. Minnesota authorities alleged that Menards raised prices on essential goods such as rubbing alcohol, garbage bags and dish soap during the pandemic in violation of a 2020 executive order banning price gouging. Menards denied the allegation but agreed not to price essential goods at excessive prices during future emergencies.

Menards will pay Minnesota $632,167.13, which the state can use for purposes including future consumer protection or privacy enforcement, consumer education or redress, litigation or local consumer aid fund or a revolving fund.