COLUMBUS, Ohio — Ohio Attorney General Dave Yost announced that Ohio and nine other states have reached a $4.25 million multistate settlement with Menards, a Wisconsin-based home improvement retailer, over allegations of deceptive rebate advertising practices.
The investigation found that Menards’ widely promoted “11% OFF” and “11% OFF EVERYTHING” advertisements often gave consumers the impression of an immediate discount at the register. Instead, customers received savings later in the form of in-store merchandise credit, a distinction investigators say was not made clear enough in the company’s advertising.
“Fine print shouldn’t cancel out big promises,” Yost said. “If a deal isn’t an immediate discount, companies need to say that plainly so consumers can make informed choices.”
According to the attorneys general involved, Menards’ marketing raised several concerns, including advertisements that appeared to offer instant price reductions, pricing that already reflected the 11% discount, and key rebate limitations buried in fine print. Investigators also took issue with Menards’ claims that “Rebates International” was a separate company handling rebates, when it is operated by Menards itself.
Under the settlement, Menards agreed to make several changes to its rebate program and advertising practices. These include discontinuing ads that suggest rebates provide immediate discounts, clearly explaining rebate rules and restrictions, and stating plainly that Rebates International is part of Menards. The company will also explore allowing online rebate submissions and online use of rebates, give customers at least one year to submit rebate forms, and improve the accuracy and timeliness of rebate tracking and status updates.
As part of the agreement, Menards will pay $4.25 million to the participating states. Ohio’s share totals $365,173.05, which will be deposited into the Ohio Attorney General’s Consumer Protection Enforcement Fund.
Joining Ohio in the settlement are the attorneys general of Arizona, Illinois, Iowa, Kansas, Michigan, Minnesota, Nebraska, South Dakota, and Wisconsin.
