Menards to Pay $4.25 Million After States Crack Down on Rebate Ads

(COLUMBUS) - Menards has agreed to pay $4.25 million dollars to settle claims that its rebate advertising misled customers. Ohio Attorney General Dave Yost announced the settlement Thursday, saying an investigation by Ohio and nine other states found the home improvement retailer's ads often gave shoppers the impression of an immediate discount at checkout. Instead, customers received rebates later in the form of store merchandise credit, with key limitations buried in fine print. State officials say Menards repeatedly advertised "11 percent off" deals in ways that suggested instant savings, listed prices that appeared discounted at the register, and failed to clearly explain rebate restrictions. Investigators also raised concerns that Menards told customers its rebate processor was a separate company, even though it is operated by Menards itself. As part of the settlement, Menards agreed to change how it advertises rebates, clearly explain all terms and conditions, improve rebate tracking and updates, give customers at least a year to submit rebate claims, and explore safer online submission and redemption options. Menards will pay the full settlement to the ten states involved. Attorneys general from Arizona, Illinois, Iowa, Kansas, Michigan, Minnesota, Nebraska, South Dakota, and Wisconsin joined Ohio in the settlement.