MITCHELL, SD (Mitchell Now) — South Dakota Attorney General Marty Jackley announced the state will receive $102,888.64 as part of a multistate settlement with Menards over allegations of deceptive advertising tied to its 11% merchandise credit rebate program.
The settlement resolves claims that Menards’ advertising misled consumers by implying an immediate point-of-purchase discount, when customers instead received store credit for future purchases.
“Despite its advertising, Menards did not put cash in the hands of their customers or provide the discount at the time of checkout,” Jackley said. “I appreciate Menards’ willingness to correct its advertisements and to make good with South Dakota consumers.”
Jackley joined a coalition of 10 state attorneys general who investigated Menards’ sales practices. The investigation found that Menards frequently used “11% OFF” advertising without clearly disclosing that the rebate was issued as in-store credit, not a cash discount. Investigators also alleged disclosures were difficult to find and that Menards misrepresented Rebates International as a separate entity.
Under the settlement, Menards agreed to revise its advertising and sales practices. Changes include clearer disclosure of rebate limitations and terms, prohibitions on advertising store credit as a point-of-sale discount, expanded rebate claim deadlines, improvements to online rebate tracking, and disclosure that Rebates International is part of Menards.
Menards will also explore options for online rebate submission and redemption.
South Dakota’s portion of the settlement will go to the Attorney General’s Consumer Protection Division to support consumer education and future investigations.
Other states participating in the settlement include Arizona, Illinois, Iowa, Kansas, Michigan, Minnesota, Nebraska, Ohio, and Wisconsin.
