That Menards 11% Rebate? Illinois AG Says It Was Misleading

If you’ve ever wandered through a Menards store (if you're from Illinois, you defintely have), through aisle after aisle of lumber, paint, tools, and DIY stuff, you no doubt sing along with their catchy “save big money” jingle.

For years, Illinois shoppers have heard about Menards’ famous 11 percent rebate program and assumed that meant an immediate discount at the register (that's what I've always thought). But a new multistate settlement announced at the tail-end of last week by the Illinois Attorney General’s Office makes one thing crystal clear: that wasn’t always the whole story.

Attorney General Kwame Raoul, alongside nine other state attorneys general, have secured a $4.25 million settlement with Menards to resolve claims that the company deceptively marketed its rebate program by implying at checkout that customers were getting an instant discount when, in many cases, they were only being offered store credit for future purchases.

The Question Is: Did You Think That 11 Percent Off Everything Meant You Were Saving Money Right Then And There?

Like I pointed out earlier, that's what I thought, too.

And, that's exactly what all the different state Attorneys General say was misleading. Instead of saving instantly, consumers had to fill out rebate forms, mail them in, and wait for sometimes weeks or months, just to use the credit on another trip. Critics argued that the advertising painted a picture that simply wasn’t accurate.

Illinois Attorney General Kwame Raoul:

Menards’ deceptive marketing left many customers believing they were getting a discount, when, in fact, the store was only offering an in-store credit for future purchases. Customers deserve to know what they will be charged when they make a purchase, without deceptive deals and fine print. I’m pleased that this settlement requires Menards to end these practices, and I will continue to work to ensure Illinois consumers are treated fairly.

Here's What All Of This Means To You, Assuming That You're A Menards Customer

Under the settlement terms, Menards must overhaul how it advertises and administers its rebate program. That includes clearly explaining that the 11 percent discount is in fact rebate credit, offering at least a year from purchase for customers to redeem rebate claims, and improving its online rebate tracker so shoppers have better transparency. Menards is also prohibited from representing store-credit rebates as immediate point-of-sale discounts going forward.

The suit also didn’t stop at rebates. The attorneys general alleged that Menards engaged in price gouging on certain items during the COVID-19 pandemic, including essentials like garbage bags and isopropyl alcohol.

Illinois will receive around $947,000 of the total settlement, which the Attorney General’s Office says will be used for future consumer protection efforts.