Menards $4.25M False Advertising Class Action Settlement
By Steve Levine
Published: December 18, 2025
Total Settlement Amount: $4,250,000
Award Amount: N/A
What Is the Menards Settlement About?
Menards has agreed to a $4.25 million multistate settlement following an investigation into its advertising and pricing practices. State attorneys general alleged that Menards deceptively marketed its well known “11% Rebate Program” in a way that could mislead consumers into believing they were receiving an immediate discount at the register, when the program actually provided store credit for future purchases.The investigation also examined whether Menards engaged in price gouging during the COVID-19 pandemic by raising prices on certain essential goods during a declared period of abnormal economic disruption.
What Was Allegedly Misleading About the 11% Rebate Program?
According to the states, Menards frequently advertised “11% OFF” or “11% OFF EVERYTHING” in a manner that implied a point of purchase discount. Investigators alleged that advertised prices already reflected the rebate, which could lead customers to believe they were saving money immediately at checkout.The states also alleged that material limitations of the rebate program were not clearly disclosed, that important disclaimers appeared in small print, and that Menards represented “Rebates International” as a separate company when it is part of Menards itself.
COVID-19 Price Gouging Allegations
As part of the multistate investigation, Menards was accused of raising prices on four gallon bottles of purified water at two Wisconsin locations during the pandemic. State officials alleged these price increases violated laws prohibiting price gouging during periods of abnormal economic disruption.What Does the Settlement Require Menards to Do?
Under the settlement terms, Menards agreed to change how it advertises and administers its rebate program. The company must stop advertising store credit programs as point of purchase discounts and must clearly disclose all material terms and limitations of the rebate program.Menards also agreed to disclose that Rebates International is part of the same company, allow consumers at least one year to submit rebate claims, and improve its online rebate tracking system with faster updates and clearer information.
The settlement also requires Menards to evaluate whether it can safely allow online rebate submissions and online redemption of rebate credits. In addition, the company is prohibited from engaging in price gouging during future declared emergencies.
Who Brought the Case?
The settlement was co-led by Wisconsin, Minnesota, Illinois, and Iowa. Attorneys general from Arizona, Kansas, Michigan, Nebraska, Ohio, and South Dakota also joined the multistate action.Wisconsin Attorney General Josh Kaul stated that pricing transparency should be straightforward for consumers and that deceptive marketing practices undermine consumer trust.
Will Consumers Receive Payments?
This settlement does not include a claims process or direct payments to individual consumers. Instead, the $4.25 million settlement fund will be distributed among participating states. Wisconsin will receive more than $750,000, split between the Wisconsin Department of Justice and the Department of Agriculture, Trade and Consumer Protection.Who Gets the Money From the Menards Settlement?
Consumers do not receive payments. The $4.25 million is paid to the participating states, which split the money among their attorney general offices, consumer protection agencies, and related enforcement budgets. In Wisconsin, the funds are allocated between the Wisconsin Department of Justice and the Department of Agriculture, Trade and Consumer Protection.How is it Fair That Consumers Don't Get Settlement Awards?
Many consumers feel it is not, because there is no refund. States typically structure settlements this way because issuing individual payments can be expensive and difficult across millions of purchases, and because government enforcement cases are designed to penalize conduct and require business changes rather than compensate each shopper. The settlement's main consumer benefit is stronger advertising disclosures and stricter rules going forward, not direct restitution.Does Menards Admit to Anything in the Class Action?
Menards denies the allegations and maintains that its advertising and pricing practices complied with the law. The company agreed to settle the matter to avoid the costs, uncertainty, and time associated with continued litigation.Bottom Line
The Menards settlement highlights increased scrutiny of rebate advertising and pandemic era pricing practices. While consumers will not receive direct payments, the agreement requires Menards to make lasting changes to how it markets its popular 11% rebate program and how it discloses pricing information going forward.Sources
Wisconsin Department of Justice press releaseWisconsin Department of Agriculture, Trade and Consumer Protection announcement
Multistate settlement agreement involving Menard Inc.
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Submit Claim| Settlement Summary | |
| Status | Multistate Settlement |
|---|---|
| Total Settlement Amount | $4.25 million |
| Wisconsin Share | Over $750,000 |
| Consumer Claims | No claim form |
| Category | Deceptive Advertising and Price Gouging |
| Defendant | Menard Inc. |
| Lead States | Wisconsin, Minnesota, Illinois, Iowa |