Menards Accused Of Price Gouging Face Masks, Bleach And Other Cleaning Products Amid Coronavirus Panic

Menards, the home improvement store, was accused of price gouging items including face masks and bleach to capitalize on the coronavirus pandemic.

The Michigan Attorney General's office said on Tuesday that it has sent a cease and desist letter to Menards after receiving complaints from 18 customers about masks, bleach, and other items being sold at high prices.

In a news release, Attorney General Dana Nessel's office said investigators found the store had doubled the price of cleaning products last week and "significantly" raised the price of face masks. The statement said investigators from the Attorney General's office "have found that Menards appears to be exploiting public fear about coronavirus disease 2019 (COVID-19) through a systematic effort of raising prices."

"Investigators discovered the store last week doubled the price of cleaning products like bleach and significantly raised the price of face masks while tying their purchase to an in-store rebate."

Customers made complaints about Menards, a chain with more than 300 locations in 14 Midwestern states, early last week, Nessel's office said.

According to the cease and desist letter, one customer shopping for bleach at a Menards store in South Haven, Michigan, said he was told by a store employee to take the shelf tag to the cash register with him as the employee had been told to double the price on all cleaning products.

"I was amazed and commented that I couldn't believe Menards would take advantage of consumers during an outbreak," the customer said in an affidavit.

Michigan Governor Gretchen Whitmer issued an executive order on Sunday to address price gouging during the COVID-19 outbreak.

The order states that no business or person can sell products "grossly" in excess of the price at which they bought the product.

It also says that products cannot be sold at a price that is more than 20 per cent higher than what it was being offered for on March 9, unless the seller can justify a higher price due to an increase in the cost of bringing the product to market.

"Big box stores are not immune to the Michigan Consumer Protection Act or the Governor's Executive Order," Nessel said.

"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 will have 10 days to respond to the letter or Nessel's office will further investigate the matter and potentially take legal action, the release added.

"We are disappointed and are taking this very seriously. We are working hard on responding in due course to the Michigan Attorney General," a spokesperson for Menards told Newsweek.

The Michigan Attorney General's office has been contacted for comment.

The new coronavirus has infected more than 201,500 people around the world and killed more 8,000, according to Johns Hopkins University. More than 82,000 people have recovered. In the U.S., 6,496 cases had been confirmed as of Wednesday morning and the death toll has climbed to 114. Seventeen people have recovered so far.

This article has been updated with a comment from Menards.

The graphic below, provided by Statista, shows the number of confirmed cases of COVID-19 around the world, as of 6 a.m EST on March 18.