Menards Settles with Illinois and Iowa Over Rebate Controversy

Menards has reached a settlement with several states, effectively resolving claims of deceptive marketing practices tied to its popular "11% Rebate Program" along with pandemic-era price gouging, per CBS News and multiple sources.

The Minnesota Attorney General's Office revealed the home improvement retailer, who is headquartered in Eau Claire, WI, reached a $4.25 million settlement with a plethora of states, including:

Arizona
Illinois
Iowa
Kansas
Michigan
Nebraska
Ohio
South Dakota

The Minnesota AG accused Menards of deceiving customers with its promise of saving "big money" through the rebate program under the guise that there is actually no real point-of-purchase discounter, per CBS News. Customers have to fill out a rebate form after they make their purchase(s), and then send the form and their receipt in the mail to Menards headquarters.

Instead of saving money, technically, consumers are receiving a Menards store credit:

An ad that says '11% OFF EVERYTHING' clearly implies that you can buy goods at an 11% discount, not that you can participate in a limited rebate program or get in-store credit for future purchases. Today's settlement holds Menards accountable for how they advertised their rebate program in the past and ensures that program will be more honest in the future - Minnesota Attorney General Keith Ellison, per CBS News

The lawsuit also stated that Menards "engaged in price gouging during the COVID-19 pandemic by raising prices on items such as rubbing alcohol, garbage bags, dish soap, and neoprene gloves."