Hailey
Menards has announced a major multistate settlement with nine U.S. states, including Kansas, resolving allegations related to deceptive advertising and misleading rebate promotions.
The agreement centers on the company’s widely advertised “11% rebate” program, which state attorneys general argued misled customers about the true nature of advertised savings.
As part of the settlement, Menards will pay $4.25 million and agree to significant changes in how it advertises rebates and pricing.
What Triggered the Multistate Investigation
The investigation focused on Menards’ long-running 11% rebate advertising campaign, which often gave consumers the impression that they were receiving an instant discount at checkout. According to the states involved, the savings were not immediate.
Instead, customers had to submit mail-in rebate forms and received store credit for future purchases, not cash or instant price reductions.
Regulators also raised concerns that:
- Important rebate limitations were not clearly disclosed
- Fine-print terms were difficult for average shoppers to notice
- Advertised prices already reflected the rebate, reinforcing the impression of instant savings
- The rebate processing system lacked transparency
In addition, some states alleged price increases on essential household items during periods of economic disruption, which further intensified scrutiny of Menards’ pricing practices.
States Involved in the Settlement
The settlement includes the following nine states:
- Kansas
- Illinois
- Minnesota
- Michigan
- Iowa
- Ohio
- Nebraska
- South Dakota
- Arizona
Each state participated in the coordinated enforcement effort to strengthen consumer protection laws and ensure advertising practices accurately reflect real savings.
Financial Details of the Settlement
Menards agreed to pay a total of $4.25 million, which will be distributed among the participating states. Funds will be used for consumer protection enforcement, restitution efforts, and education programs designed to prevent deceptive marketing in the future.
Settlement Overview
| Category | Details |
|---|---|
| Total Settlement Amount | $4.25 million |
| Number of States | 9 |
| Kansas Participation | Yes |
| Primary Issue | Deceptive rebate advertising |
| Program Involved | 11% rebate promotion |
| Outcome | Financial penalty + policy changes |
Required Changes Menards Must Implement
As part of the agreement, Menards must make several mandatory operational and advertising changes, including:
- Stop marketing rebates as instant discounts when savings are delayed
- Clearly and prominently disclose all rebate terms
- Allow customers at least 12 months to submit rebate claims
- Update rebate tracking systems within 48 hours of submission
- Improve transparency in how rebates are processed and redeemed
- Evaluate options for online rebate submission and redemption
- Refrain from unfair price increases during declared emergencies
These measures aim to ensure consumers fully understand how promotions work before making a purchase.
Why the Settlement Matters to Consumers
This settlement represents an important step in protecting shoppers from misleading advertising. Rebates can be valuable, but only when consumers clearly understand how and when savings are delivered.
By requiring clearer disclosures and longer submission windows, the agreement helps ensure shoppers are not misled by promotional language.
For Kansas residents and consumers nationwide, the changes mean greater transparency, fewer surprises, and stronger consumer rights when shopping at large retail chains.
The Menards settlement with nine states, including Kansas, highlights growing enforcement against deceptive retail advertising in the United States.
By agreeing to financial penalties and meaningful policy reforms, Menards has committed to clearer, more honest marketing practices. The case serves as a reminder that transparency matters—and that companies promoting savings must ensure customers truly understand what they are getting.