Ohio Attorney General Dave Yost has revealed that Ohio is participating in a multi-state settlement totaling $4.25 million with the home improvement chain Menards.
Investigation Findings
An investigation conducted by multiple states determined that Menards engaged in deceptive advertising regarding its rebate programs. The company's marketing materials led consumers to believe they would receive immediate discounts at checkout, when in reality the savings were provided later as store credit.
"Fine print shouldn't cancel out big promises," Yost stated. "If a deal isn't an immediate discount, companies need to say that plainly so consumers can make informed choices."
Problematic Practices Identified
The investigation uncovered several concerning marketing tactics:
Advertising "11% OFF" or "11% OFF EVERYTHING" in a manner that suggested instant price reductions
Displaying prices that already included the 11% discount
Failing to clearly communicate important limitations of the rebate program
Representing "Rebates International" as a separate entity handling rebates, despite being operated by Menards
Settlement Terms
As part of the agreement, Menards has committed to revising its advertising practices. These changes include discontinuing misleading advertisements that imply immediate discounts and ensuring rebate terms and conditions are clearly presented to consumers.
The company will also improve its online rebate submission systems and update its rebate tracking tool more promptly after customer submissions.
Financial Distribution
Ohio will receive approximately $365,173.05 from the settlement, which will be directed to the Attorney General's Consumer Protection Enforcement Fund.
The attorneys general of Arizona, Illinois, Iowa, Kansas, Michigan, Minnesota, Nebraska, South Dakota, and Wisconsin joined Yost in this multi-state action against the Wisconsin-based retailer.
