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Menards will pay $4.25 million to a group of 10 states under a December 2025 settlement over its 11% rebate advertising and, in some states, pandemic-era pricing. The agreement does not announce checks or a claims process for customers. It instead requires clearer rebate disclosures, at least 12 months to submit claims, and specific updates to the rebate tracker. Menards denied that its advertising was misleading or unlawful.
What the Menards settlement covers
On December 17, 2025, attorneys general from Arizona, Illinois, Iowa, Kansas, Michigan, Minnesota, Nebraska, Ohio, South Dakota and Wisconsin announced the agreement with Menard Inc., which does business as Menards. The investigation focused on the retailer’s merchandise-credit check program, commonly called the 11% Rebate Program. Certain states also examined Menards’ prices for some goods during the COVID-19 pandemic. Illinois Attorney General’s announcement and the signed Assurance of Voluntary Compliance describe the terms.
The states alleged that phrases such as “11% OFF” and “11% OFF EVERYTHING” could lead shoppers to expect an immediate reduction at checkout. They also said that subtracting a potential rebate from a displayed price could suggest an upfront saving, while important conditions were less prominent or appeared elsewhere. Menards denied that its advertising was misleading or violated consumer-protection laws. The Assurance says the settlement is neither an admission nor a denial; the allegations were resolved by agreement, not a court finding.
The program described in the agreement is a post-purchase rebate that requires paperwork and results in a merchandise credit check. That check is redeemable at physical Menards stores; it is not a discount applied at checkout or cash back. For online or app purchases, Menards must disclose that resulting credit can be used only in a store, not toward a later website or app purchase.
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What the agreement changes about rebate advertising and claims
Advertising must distinguish credit from an upfront discount
Menards may not present store credit as a point-of-purchase discount or cash back. That restriction includes advertising a potential credit as a percentage “off” or subtracting it from the advertised purchase price. Material limitations must be disclosed clearly and conspicuously near the sales message, and applicable terms must be readily available.
The terms must explain how to apply, what documents are required, how to check a claim’s status and contact Menards about processing, the submission deadline, and a reasonable estimate of processing time.
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Customers must have at least 12 months to file
The agreement gives customers at least 12 months from the purchase date to submit a rebate claim. It also requires the online tracker to show “In Process” within 48 hours after a complete application enters Menards’ system. The tracker must report when returns reduce a rebate and, for certain ineligible claims, show the status and reason.
Online submission and redemption are not guaranteed
Menards must investigate whether it can safely and securely accept applications and receipts online and permit credit redemption for online purchases. Those features are conditional: the agreement does not require implementation unless Menards finds a process that is safe, secure and economically feasible. The settlement terms alone do not establish whether either feature is currently available.
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The agreement also requires Menards to disclose clearly that it does business as Rebates International and that Rebates International is not a separate or independent company.
Will Menards customers receive settlement money?
The $4.25 million is paid to the participating states, not described as a customer compensation fund. The official announcements and agreement reviewed do not establish an individual claim process or direct payments to shoppers. Illinois announced an allocation of $946,633.61, while Minnesota announced $632,167.13. Those are state allocations, not amounts owed to individual customers. Illinois may use its share for lawful purposes including consumer-protection enforcement, education or redress; that does not create a direct shopper claim under this settlement.
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What the settlement says about pandemic-era prices
Certain states alleged that Menards raised prices on some essential goods early in 2020, including garbage bags, isopropyl or rubbing alcohol, dish soap and neoprene gloves. Menards denied violating the law. The agreement bars selling or offering essential consumer goods at an unconscionably high price during a period of abnormal economic disruption, as defined under the relevant law. The pricing allegations, like the rebate allegations, were not adjudicated findings.
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