When “11 % Off” Isn’t What It Seems: Minnesota’s Settlement with Menards

In the crowded aisles of home‑improvement stores, bright signs proclaiming “11 % OFF EVERYTHING” have long lured shoppers with the promise of savings — but for Minnesota consumers, that promise drew scrutiny all the way to the state’s highest law‑enforcement office. This week, Minnesota announced it will receive $632,167.13 as part of a $4.25 million multistate settlement with Menard Inc., the Wisconsin‑based retailer better known as Menards, over alleged deceptive advertising in its popular rebate program and price gouging during the COVID‑19 pandemic.

Attorney General Keith Ellison said the settlement resolves claims that Menards’ longstanding 11 % rebate offer misled customers by implying that prices were immediately discounted at checkout — when in fact the “discount” came only as store credit for future purchases after consumers mailed in rebate forms and waited for merchandise credit to arrive. States argued that the disclaimers about rebate limitations were not clearly disclosed, leading many shoppers to believe they were getting direct savings on the spot.

Beyond the rebate program, Minnesota and other states alleged that Menards engaged in price gouging during the pandemic, raising prices on everyday essentials such as rubbing alcohol, garbage bags, dish soap and neoprene gloves at a time when consumers had limited alternatives. The multistate investigation, led by Wisconsin, Minnesota, Illinois and Iowa — with additional participation by Arizona, Kansas, Michigan, Nebraska, Ohio and South Dakota — concluded with the retailer agreeing to change its business practices and pay the settlement amount.

As part of the settlement filed in Ramsey County District Court, Menards must change how it advertises its rebate program. The company is now prohibited from implying that store‑credit rebates represent immediate discounts at the point of sale. It also must conspicuously disclose rebate terms and limitations, update its online rebate tracking system more promptly, allow customers at least one year from their purchase date to submit rebate claims, and refrain from price gouging during future periods of abnormal economic disruption.

For Minnesota, the payout — more than $630,000 — goes to the state rather than directly to consumers, and will be used for consumer protection enforcement and related governmental purposes. While individual shoppers will not receive cash from this settlement, officials and consumer advocates say the changes required by the agreement could lead to clearer marketing and fairer pricing in the future — especially for Northland and Twin Cities residents who frequent Menards’ stores across the state.

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Sources

• Minnesota Attorney General press release

• KSTP News

• WDIO News