Menards Class Action Over Price Gouging and Rebates

In December 2025, ten state attorneys general reached a $4.25 million settlement with Menard, Inc. over its “11% off” rebate promotions and price hikes on essential goods during the early months of the COVID-19 pandemic. The Menards 11% rebate settlement resolves allegations that the retailer’s signage led shoppers to expect an instant discount at the register when the savings actually came later, as store credit good only on future in-store purchases.

Do Shoppers Get Any Money Back

No. The $4.25 million was paid to the ten participating states and went into state enforcement funds. No claims process was created for individual customers to seek restitution. If you submitted a rebate in the past and felt shortchanged, this settlement does not reimburse you.

Menards also denied that its advertisements were false, misleading, or confusing. The Assurances of Voluntary Compliance filed on December 17, 2025 are neither an admission nor a denial of liability.

What the States Said Was Wrong With the “11% Off” Ads

The investigation focused on how Menards promoted its “11% Rebate Program.” Signs reading “11% OFF” or “11% OFF EVERYTHING” gave shoppers the impression they would pay less at checkout. In fact, customers paid full price, mailed in paperwork, and received a merchandise credit check that could only be spent on future in-store purchases.

The attorneys general pointed to several practices. Shelf prices were sometimes listed as if the 11% had already been taken off, reinforcing the sense of an immediate discount. The rebate program’s key limitations sat in fine print, often placed away from the promotional signage. And Menards told customers that “Rebates International” was a separate, independent company processing their claims, when Rebates International was Menards itself operating under another name.1Ohio Attorney General. Ohio, 9 Other States Reach $4.25 Million Settlement With Menards

Ohio Attorney General Dave Yost put it this way: “Fine print shouldn’t cancel out big promises. If a deal isn’t an immediate discount, companies need to say that plainly so consumers can make informed choices.”2FOX19. Ohio, Other States Settle With Menards Over Ads Promising 11% Off Everything

The Price Gouging Allegations

The same settlement resolved separate claims that Menards raised prices on essential goods during the early pandemic. In Wisconsin, investigators zeroed in on four-gallon bottles of purified water at store locations in Onalaska and Johnson Creek.3Wisconsin DATCP. Menards Multistate Settlement Illinois, Minnesota, and other states cited additional items, including isopropyl alcohol, garbage bags, dish soap, and neoprene gloves.4NBC Chicago. Menards to Pay $4.25M to Illinois, Other States After Suit Claims the Retailer Deceived Customers on Discounts

Complaints arrived quickly once states began declaring emergencies in March 2020. Michigan Attorney General Dana Nessel sent a cease-and-desist letter to Menards on March 17, 2020, citing 18 written complaints about price hikes on bleach and face masks. Wisconsin regulators received complaints even before Governor Tony Evers declared a health emergency on March 12, 2020.5Wisconsin Examiner. COVID-19 Price Gouging Complaints Against Menards

Going forward, the settlement prohibits Menards from price gouging during any future declared period of abnormal economic disruption.3Wisconsin DATCP. Menards Multistate Settlement

What Menards Has to Change About the Rebate Program

The practical consequence for shoppers is a set of operational changes Menards had to put in place within 90 days of December 17, 2025.6Ohio Attorney General. Ohio Menards State Assurance

On advertising, Menards can no longer describe the merchandise credit check program as a “point-of-purchase discount” or use phrases like “price after rebate” or a percentage “off” the final register price. Material limitations of the rebate program must be disclosed clearly and prominently, in the same medium as the ad, and cannot be tucked behind hyperlinks or “click more” buttons. The company must also publicly acknowledge that Rebates International is a name Menards does business under, not a separate entity.7Wisconsin DOJ. Menards Wisconsin Assurance of Voluntary Compliance

The rebate process itself has to work differently:

  • Customers get at least 12 months from the purchase date to submit a rebate claim.
  • Once a claim is entered, the online rebate tracker must show “In Process” within 48 hours.
  • If a claim is denied, the tracker must show a specific reason, not a generic rejection.
  • The tracker must reflect any reduction to a rebate caused by product returns.
  • Menards must investigate the feasibility of accepting rebate submissions online and letting customers use merchandise credits for online purchases.7Wisconsin DOJ. Menards Wisconsin Assurance of Voluntary Compliance

If a state attorney general finds Menards has violated the terms, the company has 30 days to respond in writing or propose a corrective action plan. That window does not apply when the attorney general concludes the violation poses an immediate threat to public health or safety.8Illinois Attorney General. Menards Illinois Assurance of Voluntary Compliance

How the $4.25 Million Was Split

Where publicly disclosed, the state allocations were:

Arizona, Iowa, Kansas, Michigan, and South Dakota also participated, though their individual shares were not made public in available records. Menards separately paid $7,237 to the National Association of Attorneys General to fund a document review platform.8Illinois Attorney General. Menards Illinois Assurance of Voluntary Compliance