Attorney General Kwame Raoul announced a $4.25 million settlement with Menard Inc., resolving allegations that the home improvement retailer used deceptive advertising in its merchandise credit check program, known as the Menards 11% Rebate Program.
The investigation, led by Raoul and a coalition of attorneys general from several states, focused on Menards’ advertising practices. The company often promoted “11% off” or “11% off everything,” which the coalition claims misled customers into believing they would receive an immediate discount at checkout. Instead, shoppers were offered an in-store merchandise credit for future purchases.
“Menards’ deceptive marketing left many customers believing they were getting a discount, when, in fact, the store was only offering an in-store credit for future purchases,” Raoul said. “Customers deserve to know what they will be charged when they make a purchase, without deceptive deals and fine print. I’m pleased that this settlement requires Menards to end these practices, and I will continue to work to ensure Illinois consumers are treated fairly.”
According to the attorneys general, Menards did not properly disclose the details of its rebate program; key information was provided only in small print. They also alleged that during the early stages of the COVID-19 pandemic, Menards raised prices on certain essential products such as garbage bags and cleaning supplies.
As part of the settlement terms, Menards must change how it advertises discounts linked to its rebate program. The company can no longer suggest customers will get a direct discount if only store credit is provided instead. It must clearly disclose all limitations and conditions associated with rebates and give consumers at least one year from purchase to submit claims.
Menards is also required to improve its online rebate tracker by updating information within 48 hours after applications are processed and providing additional details about each rebate’s status. The company will investigate options for allowing consumers to submit and redeem rebates securely online.
Additionally, Menards is prohibited from engaging in price gouging during periods of abnormal economic disruption.
Of the $4.25 million payment under the agreement, Illinois will receive $946,633.61. Other states participating include Minnesota, Wisconsin, Iowa, Arizona, Kansas, Michigan, Nebraska, Ohio and South Dakota.
