Update: Menards says their bleach prices are ‘reasonable’ after being accused of price gouging by Michigan Attorney General

The home improvement company Menards got a cease and desist letter from the Michigan Department of Attorney General Tuesday after investigators found evidence of Menards stores hiking prices on bleach and 3M face masks during the coronavirus pandemic.

In the letter sent to Menards corporate offices in Wisconsin, Assistant Attorneys General Darrin F. Fowler and Andrea Moua wrote the attorney general’s office has received 18 written complaints from consumers about price increases at the company’s locations in Michigan.

Reports began coming in about Menards early last week, per the Attorney General’s office, including one from a customer at the South Haven location.

Investigators found Menards “has essentially doubled the price on some cleaning products such as bleach” and priced two-packs of 3M face masks at $39.95 with a $20 in-store rebate.

The letter calls the reports “unconscionable” and directs the company to respond in 10 days, noting the department is taking steps to either file a civil lawsuit or commence a formal investigation if no assurance of voluntary compliance is provided.

“In short, the actions of Menards this past week are unacceptable,” the letter concludes. “In this very unique moment, we are hopeful that Menards will immediately change course and renew its commitment to the jingle it has worked so hard to brand into the consciousness of Michigan consumers.”

In an email to MLive, Menards spokesperson Jeff Abbott said “it’s been a very chaotic time for all of us” since the coronavirus outbreak, adding it’s hard to figure out the market in unusual, unprecedented conditions.

He said the Clorox bleach Menards carries changed the concentration of sodium hypochlorite from 6 percent to 7.5 percent late last year, which increased costs but also increased the number of uses per bottle. The company dropped prices on the original product to make way for the new in February, Abbott said, and priced the new version of the product at $8.99 in early March.

That price was lowered to $7.49 on March 13 to be competitive in the marketplace, Abbott said.

“Based on the market, our $7.49 price on a 121-ounce bottle of 7.5% sodium hypochlorite concentrated bleach seems reasonable to us,” he said.

Abbott’s email did not directly address the concerns raised over prices of 3M masks raised by the Attorney General’s office.

“We will continue to monitor and adjust prices if the market changes,” he said in the email. “Our focus right now is to get products to our stores or else none of this would matter anyway.”

In a statement, Attorney General Dana Nessel said big box stores are not immune to the Michigan Consumer Protection Act or a recent executive order from Gov. Gretchen Whitmer intended to stop price gouging on products related to the coronavirus.

“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," she said in the statement.

As of 11 a.m. Tuesday, the Attorney General’s office has received 363 complaints of price gouging. The department temporarily expanded hours of operation for consumer tip lines this week, leaving lines open for additional reports through 11 p.m. Tuesday.

The line is typically open between 8:30 a.m. and 4:30 p.m. Monday through Friday.

Michigan residents can report suspected violations of the Consumer Protection Act online or by calling 877-765-8388.

This article has been updated to include a response from Menards spokesperson Jeff Abbott.

PREVENTION TIPS

Michigan’s State Emergency Operations Center is coordinating state-government resources and the response to the coronavirus spread. It has shared the following tips:

What you can do to prevent the spread of COVID-19 and other respiratory diseases:

· Always cover coughs or sneezes with a tissue or sleeve.

For statewide and national information on the virus, visit Michigan.gov/Coronavirus or CDC.gov/Coronavirus.

· Stay home if you are sick and advise others to do the same.

· Avoid close contact with people who are sick.

· Avoid touching your eyes, nose and mouth with unwashed hands.

· Wash your hands often with soap and warm water for at least 20 seconds.

· Use an alcohol-based hand sanitizer with at least 60% alcohol, if soap and warm water are not available.

· Clean and disinfect frequently touched objects and surfaces (computers, keyboards, desks, etc.).

· It’s not too late to get your flu shot! While the influenza vaccine does not protect against COVID-19 infection, it can help keep you healthy during the flu season.

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