Menards' Iconic '11% Rebate' Program Reined In By Midwest Attorneys General

EAU CLAIRE, WI — Wisconsin-based Menards will be forced to overhaul its iconic 11 percent rebate program under a multistate settlement involving Wisconsin and other Midwest states, resolving allegations that the retailer deceptively advertised the rebate and engaged in price gouging during the COVID-19 pandemic.

Under the settlement, Menards will pay $4.25 million to a coalition of states. Wisconsin is among the states receiving a share of the settlement, which was filed Tuesday in Ramsey County District Court in Minnesota.

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

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

Investigators also said Menards advertised prices that reflected the rebate amount rather than the actual price paid at checkout and failed to clearly disclose key limitations of the rebate program, including that it was not an immediate discount and could not be used online.

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.

The settlement also resolves claims that Menards raised prices on essential consumer goods during COVID-19 emergency periods, including items such as rubbing alcohol, garbage bags, dish soap, and neoprene gloves, in violation of state price-gouging restrictions.

As part of the agreement, Menards is prohibited from advertising store-credit rebates as point-of-purchase discounts. The company must clearly disclose that its rebate program offers mail-in, in-store merchandise credit for future purchases, not an immediate price reduction.

Menards must also 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.