South Dakota to Receive Over $100K in Settlement Over Deceptive Menards Rebate Advertising

Northeast Radio SD News – South Dakota - South Dakota Attorney General Marty Jackley announced today that the state will receive $102,888.64 as part of a multistate settlement with Menards. The agreement resolves claims that the home improvement retailer deceptively marketed its “11% Rebate Program.”

The settlement follows an investigation by a coalition of 10 Attorneys General into the company’s merchandise credit check program. Jackley noted that while advertisements frequently featured “11% OFF EVERYTHING,” the promotion did not actually provide a discount at the register.

“Despite its advertising, Menards did not put cash in the hands of their customers or provide the discount at the time of checkout,” Jackley said. “I appreciate Menards’ willingness to correct its advertisements and to make amends with South Dakota consumers.”

Allegations of Deceptive Practices 

The multi-state investigation alleged several misleading practices regarding the rebate program:

·        False Point-of-Purchase Claims: Advertising implied a direct discount at the time of sale, while Menards only offered in-store credit for future purchases.

·        Misleading Price Tags: Advertised prices often reflected the 11% discount, wrongly suggesting immediate savings.

·        Inadequate Disclosures: Material limitations of the rebate were hidden in small print or separated from the primary discount claims.

·        Hidden Entity Ties: Menards represented “Rebates International” as a separate entity when it is actually the same company.

Terms of the Settlement

As part of the agreement, Menards has agreed to significant changes in its sales and advertising practices. The company is now prohibited from representing store credit programs as point-of-purchase discounts and must clearly disclose all terms and conditions.

Further improvements required under the settlement include:

·        Online Integration: Menards must investigate options for online rebate submissions and the redemption of rebates for online purchases.

·        Transparency: The company must clearly disclose that it is doing business as Rebates International.

·        Claim Window: Consumers must be allowed at least one year from the date of purchase to submit a rebate claim.

·        Improved Tracking: The online rebate tracker must be updated within 48 hours of an application being entered and must include information regarding how returns affect specific rebates.

South Dakota’s portion of the settlement funds will be directed to the Attorney General’s Consumer Protection Division to support future investigations and consumer education initiatives.

The coalition involved in the settlement included South Dakota, Arizona, Illinois, Iowa, Kansas, Michigan, Minnesota, Nebraska, Ohio, and Wisconsin.