COLUMBUS, Ohio — Ohio and nine other states have reached a $4.25 million settlement with the home improvement store Menards over allegations that the retailer misled customers with deceptive rebate advertising, Attorney General Dave Yost’s office announced Thursday.
An investigation by the collection of states found that Menards advertised discounts in ways that suggested immediate savings at the checkout, when in reality, customers received in-store merchandise credit for future purchases.
For example, Menards advertised “11% OFF” or “11% OFF EVERYTHING” in ways that implied instant price cuts while failing to explain the limits of the rebate program, burying key details in fine print, according to the states. Menards also told customers that “Rebates International” was a separate company handling rebates, even though it is operated by Menards itself.
“Fine print shouldn’t cancel out big promises,” Yost said in a statement. “If a deal isn’t an immediate discount, companies need to say that plainly so consumers can make informed choices.”
Under the settlement, Menards agreed to discontinue ads suggesting store-credit rebates are an immediate discount, and to clearly explain rebate program rules and conditions. The company will also research online rebate submission options and explore allowing customers to use rebates on online purchases. Menards must also give customers at least one year to submit rebates, among other policy changes.
Ohio will receive over $365,000 in settlement funds, which will go to the Attorney General’s Consumer Protection Enforcement Fund. Joining Ohio were the attorneys general of Arizona, Illinois, Iowa, Kansas, Michigan, Minnesota, Nebraska, South Dakota and Wisconsin.
Cleveland.com has reached out to Menards for comment.