Menards Agrees to $4.25 Million Settlement Over Rebate Advertising

(COLUMBUS, Ohio) — Ohio Attorney General Dave Yost announced a $4.25 million multistate settlement with Menards, a Wisconsin-based home-improvement retailer, over allegations of deceptive rebate advertising.

An investigation by Ohio and nine other states found that Menards’ advertising often gave shoppers the impression that they would get an immediate discount at the register, but the savings actually came later in the form of in-store merchandise credit.

“Fine print shouldn’t cancel out big promises,” Yost said. “If a deal isn’t an immediate discount, companies need to say that plainly so consumers can make informed choices.”

The states raised several concerns with Menards’ marketing and sales practices, including allegations that the company:

• Advertised “11% OFF” or “11% OFF EVERYTHING” in a way that suggested an instant price cut, even though customers received only a rebate to use on future purchases.
• Listed prices that already reflected an 11% discount, reinforcing the idea that shoppers were saving money at checkout.
• Failed to clearly explain important limits of the rebate program, burying key details in fine print.
• Told customers that “Rebates International” was a separate company handling rebates, even though it is operated by Menards itself.

As part of the settlement, Menards has agreed to change how it advertises and runs its rebate program by:

• Discontinuing ads suggesting that store-credit rebates provide an immediate discount.
• Clearly and plainly explaining the rules, limits and conditions of its rebate program.
• Researching ways for customers to safely submit rebate forms and receipts online.
• Exploring options for customers to use rebates on online purchases.
• Clearly stating that Rebates International is part of Menards.
• Giving customers at least one year from the purchase date to submit a rebate.
• Updating its online rebate tracker within 48 hours after a rebate entry into the system.
• Providing clearer rebate status updates, including how returns may affect a rebate.

Menards will also pay $4.25 million to the participating states. Ohio will receive $365,173.05, which will go to the Attorney General’s Consumer Protection Enforcement Fund.

Joining Ohio were the attorneys general of Arizona, Illinois, Iowa, Kansas, Michigan, Minnesota, Nebraska, South Dakota and Wisconsin.