Menards' Iconic '11% Rebate' Program Reined In By Keith Ellison And Other Midwest Attorneys General

SAINT PAUL, MN — Wisconsin-based Menards will be forced to overhaul its famous 11 percent rebate program under a multistate settlement led by Minnesota Attorney General Keith Ellison, resolving allegations that the retailer deceptively advertised the rebate and engaged in price gouging during the COVID-19 pandemic.

The agreement was negotiated by Minnesota along with Illinois, Iowa, and Wisconsin. Attorneys general from Arizona, Kansas, Michigan, Nebraska, Ohio, and South Dakota also joined the settlement.

Under the settlement, Menards will pay $4.25 million to the coalition of states, including $632,167.13 to Minnesota. The agreement was filed Tuesday in Ramsey County District Court.

The lawsuit said Menards routinely advertised its promotion using phrases such as "11% OFF" or "11% OFF EVERYTHING," which investigators argued falsely implied an immediate discount at the register. In reality, customers paid full price and later received a mail-in merchandise credit that could only be redeemed at Menards stores.

State investigators also found that Menards’ advertised prices often reflected the rebate amount rather than the price actually paid at checkout, and that key limitations of the rebate program were disclosed only in small print or separate materials.

In addition, the states said Menards misrepresented "Rebates International" as a separate entity responsible for handling rebate issues when it is actually part of Menards itself.

"It’s hard for Minnesotans to afford their lives when businesses are trying to deceive them," Ellison said. "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."

The settlement also resolves claims that Menards raised prices on essential consumer goods during Minnesota’s COVID-19 peacetime emergency, including items such as rubbing alcohol, garbage bags, dish soap, and neoprene gloves, in violation of an executive order banning price gouging.

As part of the agreement, Menards is prohibited from advertising any store-credit rebate as a point-of-purchase discount. The company must clearly disclose all material limitations of its rebate program, including that rebates are not immediate discounts and are redeemable only as in-store credit.

Menards is also required to disclose that Rebates International is not a separate company, give customers at least one year to submit rebate claims, and provide faster and more transparent updates through its online rebate tracking system. The settlement further bars Menards from engaging in price gouging during future periods of abnormal economic disruption.

Menards did not admit wrongdoing as part of the settlement.