The state of South Dakota is receiving $100,000 in a settlement with Menards. Attorney General Marty Jackley helped secure the funds through a multistate lawsuit.
Jackley and 10 other attorneys general—from Arizona, Illinois, Iowa, Kansas, Michigan, Minnesota, Nebraska, Ohio and Wisconsin—sued the company, claiming it deceptively marketed its merchandise credit check program. It’s commonly called Menards 11% Rebate Program.
The attorneys general alleged:
- The company’s prolific use of “11% OFF” or “11% OFF EVERYTHING” advertising falsely claimed a point-of purchase discount, when Menards actually only offered an in-store merchandise credit for future purchases;
- Menards’ advertised prices reflected an 11% discount, which wrongly implied that customers could realize a savings at the time of purchase;
- Menards failed to appropriately disclose the material limitations of the rebate program because the disclaimers were in small print and removed from the discount representation; and,
- Menards told customers that “Rebates International” is a separate entity responsible for its 11% off program, when it is actually the same company.
The settlement means Menards will make changes to its advertising and sales practices.
- A prohibition from advertising or representing that any program that offers store credit for making purchases at Menards provides consumers with a point-of-purchase discount;
- Clearly and conspicuously disclosing material limitations of the rebate program and disclosing all applicable terms and conditions of the rebate program in a readily available manner;
- Investigating whether and to what extent it can offer a process by which consumers can safely and securely submit rebate application forms and receipts online;
- Investigating whether and to what extent it can offer a process by which consumers can safely and securely redeem their rebate for online purchases;
- Clearly and conspicuously disclosing that Menards is doing business as Rebates International;
- Allowing consumers at least one year from the date of purchase to submit a rebate claim;
- Updating their online rebate tracker with information about the rebate claim within 48 hours of the application being input into Menards’ system;
- Updating their online rebate tracker with additional information about the rebate, including updates about returns affecting the rebate.
South Dakota’s share of the settlement will go to the Attorney General’s Consumer Protection Division. Jackley says they’ll be used for consumer education and future investigations.
