Minnesota Settles Lawsuit With Menards Over 11% Rebate

Wisconsin-based Menards is wrapping up the year by settling a multi-state lawsuit that claimed the home improvement chain misled shoppers with its well-known 11 percent rebate program.

Minnesota, along with Arizona, Kansas, Michigan, Nebraska, Ohio, and South Dakota, argued that Menards’ prolific use of phrases like “11% OFF” and “11% OFF EVERYTHING” amounted to false advertising. According to the states, those ads gave shoppers the impression they would receive an immediate discount at checkout, rather than a mail-in rebate issued as in-store credit.

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The lawsuit also claimed Menards advertised prices as if the 11 percent discount had already been applied, reinforcing the belief that customers would pay less at the register. Attorneys General further alleged that Menards misled customers by presenting “Rebates International” as a separate company, when in fact it was operated by Menards itself.

COVID-Era Price Gouging Allegations

Beyond the rebate program, the lawsuit accused Menards of price gouging during the COVID-19 pandemic. State officials said the retailer raised prices on essential items such as rubbing alcohol, garbage bags, dish soap, and neoprene gloves at a time when consumers had limited alternatives.

Settlement Terms and Changes Ahead

Menards will pay $4.25 million to settle the lawsuit. The settlement, filed in Ramsey County District Court, requires the company to make several changes to its advertising and sales practices.

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Under the agreement, Menards will stop using advertising language that promotes store credit as a discount. The company will also allow customers up to one year to submit rebates and will provide rebate tracking within 48 hours of being entered into Menards’ system.

Why This Matters in Minnesota

With dozens of Menards locations across Minnesota, the settlement directly affects Northland and Twin Cities shoppers who relied on the rebate program for big home improvement projects. Minnesota Attorney General Keith Ellison said the agreement ensures clearer advertising and greater transparency moving forward.

In a press release, 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. 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.”