Menards to pay 10 states, including Ohio, $4.25 million in rebate settlement

COLUMBUS, Ohio (WCMH) — Ohio is part of a multistate lawsuit settlement against home improvement store Menards.

According to the state Attorney General’s Office, Ohio and nine other states reached the settlement with Menards, a Wisconsin-based home-improvement retail store, over allegations of deceptive rebate advertising.

The 10-state led investigation revealed that Menards would give shoppers the impression that they were getting an immediate discount while shopping through its advertising, when in fact, savings actually came in the form of a rebate or in-store credit.

The investigation raised concerns with Menards’ marketing strategy and sales practices, alleging the following of the company:

• Advertised 11% off or 11% off everything that suggested an instant price cut, even though customers received only a rebate on future purchases.
• Listed prices already at an 11% discount, reinforcing the idea that shoppers were getting an in-store discount.
• Failed to clearly explain the important limits of the rebate program, burying key details in the fine print.
• Tell customers that Rebates International was a separate company handling rebates, even though it is operated by Menards itself.

The settlement, announced Thursday, included an agreement by Menards that it would, in part, discontinue ads suggesting immediate discounts, clearly explaining the rules, limits, and conditions of its rebate program, and offer customers an easier path towards claiming rebates, both in person and online, among other changes.

In addition, Menards will pay participating states $4.25 million in fees, of which $365,173.05 will go toward the Ohio Attorney General’s Consumer Protection Enforcement Fund.