Menards, a major home improvement chain popular in the Midwest, faces changes after a $4.25 million settlement with 10 state attorneys general. The deal addresses misleading ads for its “11% OFF EVERYTHING” rebate program and price hikes on key items during the COVID-19 pandemic. Announced on December 17, 2025, the agreement requires clearer marketing and better practices to protect shoppers.
Misleading Rebate Ads
Shoppers knew Menards for its “Save big money” slogan and bold “11% OFF EVERYTHING” signs in stores, TV ads, and flyers. These promotions made people think they would get an instant discount at checkout, but the reality involved a complicated rebate process instead. Internal documents revealed company leaders knew the setup confused customers yet saw it as a way to stand out from rivals. Staff training told workers to give short answers about rebates, even when asked, leaving many buyers in the dark.
Illinois Attorney General Kwame Raoul stressed that consumers deserve clear charges without tricky fine print. The states argued the ads wrongly showed prices already cut by 11%, implying savings right away. This lack of upfront clarity formed the core of the deception claims.
Complicated Rebate Process
To claim the 11% back, customers paid full price at the register and then had to keep receipts, find special forms, and mail everything to “Rebates International.” Processing took six to eight weeks with no updates, and approved claims came as store credit only for future buys, not cash. Many skipped the steps due to lost papers, tight deadlines, or hassle, so the promised savings often vanished.
Regulators highlighted how Rebates International sounded like an independent firm, but it was just Menards under another name. Minnesota Attorney General Keith Ellison noted this hid that problems went straight back to the retailer. The settlement now bans hiding this link and demands plain statements that it’s the same company.
Menards runs 341 stores across 15 states, pulls in about $13 billion yearly, and ranks as the nation’s third-largest home improvement chain after Home Depot and Lowe’s. Its rebate system drew extra fire because disclaimers hid in tiny print far from the big discount claims.
Price Gouging in Pandemic
Beyond rebates, the probe uncovered sharp price jumps on everyday goods when COVID-19 hit and demand soared. Menards raised costs on rubbing alcohol, garbage bags, dish soap, neoprene gloves, and even bottled water in states like Wisconsin. These items became must-haves for cleaning, protection, and hygiene amid widespread worry and few other options.
Officials called this price gouging, exploiting a health crisis for profit. Combined with rebate issues, it painted a picture of favoring earnings over fair dealings. The settlement bars such hikes during economic disruptions like emergencies.
Settlement Changes Ahead
The $4.25 million will split among Minnesota, Wisconsin, Illinois, Iowa, Arizona, Kansas, Michigan, Nebraska, Ohio, and South Dakota for costs, restitution, and consumer education on rebates and gouging laws. Minnesota gets about $632,000, Wisconsin over $750,000, and Ohio $365,000, for example. Menards must now spell out in ads and stores that rebates mean mailed forms and future credit, not instant cuts.
New rules include a one-year window to file claims, online submission options, a tracker updated in 48 hours, and probes into online redemptions. Ellison said the ads wrongly promised quick discounts, but the fix ensures honesty going forward. Menards agreed to the terms, claiming past legal compliance while vowing better disclosures and pricing reviews. Consumer groups wonder if the fine hits hard enough for a multibillion-dollar firm, and states plan close watch on follow-through. This case spotlights rebate traps and crisis pricing, urging shoppers to read terms closely.
Sources
Settlement Announcement: Minnesota Attorney General Keith Ellison, December 17, 2025
Statement by Illinois Attorney General Kwame Raoul, December 17, 2025
Multistate Attorneys General Investigation Report, December 2025