Attorney General Ellison secures settlement with Menards regarding deceptive rebate advertising and price gouging
Menards to pay $4.25M to coalition of states; Minnesota to receive $630,000 in settlement
December 17, 2025 (SAINT PAUL) — Attorney General Ellison today announced a $4.25 million multistate settlement with Menard Inc. d/b/a Menards, a home improvement retail chain, which resolves claims that the company deceptively marketed its merchandise credit check program (commonly known as the “Menards 11% Rebate Program”) and engaged in price gouging during the COVID-19 pandemic.
The States investigated a number of problems with Menards’s sales practices, including that:
- The company’s prolific use of “11% OFF” or “11% OFF EVERYTHING” advertising falsely claimed a point-of purchase discount, when Menards actually only offered an in-store merchandise credit for future purchases;
- Menards’s advertised prices reflected an 11% discount, which wrongly implied that customers could realize a savings at the time of purchase;
- Menards failed to appropriately disclose the material limitations of the rebate program because the disclaimers were in small print and removed from the discount representation;
- Menards told customers that “Rebates International” is a separate entity responsible for its 11% rebate program, when it is actually the same company; and
- Menards engaged in price gouging during the COVID-19 pandemic by raising prices on items such as rubbing alcohol, garbage bags, dish soap, and neoprene gloves.
"It’s hard for Minnesotans to afford their lives when businesses are trying to deceive them,” said Attorney General Ellison. “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. Furthermore, it is disappointing that Menards took advantage of the fear and uncertainty during the height of the COVID-19 pandemic to jack up prices on consumers, so we are holding them accountable for that as well.”
Under the terms of the settlement, filed today in Ramsey County District Court, Menards will make several changes to its advertising and sales practices, including:
- A prohibition from advertising or representing that any program that offers store credit for making purchases at Menards provides consumers with a point-of-purchase discount;
- Clearly and conspicuously disclosing material limitations of the rebate program and disclosing all applicable terms and conditions of the rebate program in a readily available manner;
- Investigating whether and to what extent it can offer a process by which consumers can safely and securely submit rebate application forms and receipts online;
- Investigating whether and to what extent it can offer a process by which consumers can safely and securely redeem their rebate for online purchases;
- Clearly and conspicuously disclosing that Menards is doing business as Rebates International;
- Allowing consumers at least one year from the date of purchase to submit a rebate claim;
- Updating their online rebate tracker with information about the rebate claim within 48 hours of the application being input into Menards’ system;
- Updating their online rebate tracker with additional information about the rebate, including updates about returns affecting the rebate; and
- A prohibition from engaging in price gouging during a period of abnormal economic disruption.
As part of the settlement, the company will pay $4.25 million to the multistate group, which includes a payment of $632,167.13 to Minnesota.
Along with Minnesota, the settlement was negotiated by Illinois, Iowa, and Wisconsin. Joining the settlement are the Attorneys General of Arizona, Kansas, Michigan, Nebraska, Ohio, and South Dakota.
