Menards Lawsuit, $4.25M Settlement Over “11% OFF” Rebate Deception Finalized, Court Approval Hearing April 30, And What The Price Gouging Claims Mean For Customers

If you shopped at Menards and believed you were getting an “11% OFF” discount at checkout, a $4.25 million multistate settlement finalized in December 2025 confirms those ads were misleading. The settlement resolves claims that Menards falsely advertised point-of-purchase discounts when it only offered store credit for future purchases, plus allegations of COVID-19 price gouging on essential items.

What The Menards Lawsuit Alleged

Ten state attorneys general—Illinois, Minnesota, Wisconsin, Iowa, Arizona, Kansas, Michigan, Nebraska, Ohio, and South Dakota—filed enforcement actions against Menard Inc. alleging deceptive marketing of its “11% Rebate Program.” The states claimed Menards violated consumer protection laws through several practices.

First, Menards’ prolific use of “11% OFF” or “11% OFF EVERYTHING” advertising falsely implied customers received immediate discounts at the register. In reality, the program only provided in-store merchandise credit checks for future purchases after customers mailed rebate forms to “Rebates International.”

Second, advertised prices reflected the 11% reduction, creating the false impression that checkout prices included savings. Michigan Attorney General Dana Nessel stated advertisements should inform, not deceive consumers.

Third, fine-print disclaimers buried material limitations of the rebate program, failing to clearly disclose that customers would not save money at the time of purchase. Minnesota Attorney General Keith Ellison emphasized that “11% OFF EVERYTHING” clearly implies an immediate discount, not a limited rebate program requiring future redemption.

Fourth, Menards told customers that “Rebates International”—the name on rebate submission addresses—was a separate entity when it’s actually Menard Inc. doing business under an assumed name. Additionally, Illinois, Minnesota, and Wisconsin alleged Menards engaged in price gouging during the COVID-19 pandemic by raising prices on essential goods including rubbing alcohol, garbage bags, dish soap, and neoprene gloves in early 2020.

December 2025 Settlement And State-By-State Payments

On December 17-18, 2025, the coalition announced the $4.25 million settlement. Each participating state receives a portion: Illinois ($946,633.61), Wisconsin ($750,000), Minnesota ($632,167), Michigan ($637,641.06), Iowa, Arizona, Kansas, Nebraska, Ohio, and South Dakota (remaining portions not publicly disclosed).

The settlement funds go to state treasuries for consumer protection enforcement, not directly to individual Menards customers who experienced the deceptive advertising. This is an enforcement action, not a consumer class action settlement with claim forms.

Under the agreement, Menards must implement significant changes to advertising and sales practices without admitting wrongdoing. Similar false advertising settlements like Red Bull’s $13 million payout demonstrate how misleading marketing slogans trigger consumer protection lawsuits.

Required Changes Menards Must Implement

Menards agreed to multiple operational changes. The company cannot advertise or represent that programs offering store credit provide point-of-purchase discounts. All rebate program limitations must be clearly and conspicuously disclosed with terms readily available to customers.

Material disclosures about the rebate—including that it’s store credit for future purchases, not an immediate discount—must appear prominently, not in small print. Menards must clearly disclose that “Rebates International” is Menards doing business under an assumed name, not a separate company.

Customers now have at least one year from purchase date to submit rebate claims (previously shorter windows). Menards must update online rebate trackers within 48 hours of applications entering their system and provide information about returns affecting rebates.

The company must investigate and potentially implement secure online rebate submission and redemption processes to replace mail-in requirements. Menards is prohibited from price gouging during periods of abnormal economic disruption.

According to court documents, these changes aim to ensure future advertising accurately represents what customers receive at checkout versus what requires additional steps for future redemption.

February 2026 Timeline: Objection Deadline And Court Hearing

The settlement received preliminary approval. As of February 2026, critical deadlines approach. Consumers who want to object to the settlement must file written objections by February 19, 2026.

The court will hold a final fairness hearing on April 30, 2026, to consider whether to grant final approval. If approved, the settlement becomes binding and Menards must comply with all terms.

This is not a traditional class action where consumers file claims for cash payments. Instead, it’s a regulatory enforcement settlement requiring business practice changes and financial penalties paid to states. Retail consumer protection settlements like Celsius-drink Celsius‘ $7.8 million payout show some cases compensate individual consumers while others fund state enforcement.

What You Must Know About The Settlement Terms

This settlement doesn’t provide direct compensation to Menards customers who were misled. The $4.25 million goes to participating states’ consumer protection funds, not individual shoppers.

You cannot file a claim for rebates you didn’t submit or purchases where you believed you received discounts at checkout. The settlement focuses on future business practices, not past customer reimbursement.

If you currently have pending Menards rebate claims, those should process under the new transparency requirements. Monitor rebate status through Menards’ online tracker, which must now update within 48 hours.

The price gouging allegations specifically covered early 2020 pandemic period increases on essential items. Current pricing practices aren’t affected beyond the prohibition on future emergency price gouging.

Menards continues operating its rebate program but must clearly distinguish between point-of-sale discounts and rebate credits requiring future redemption steps.

What To Do If You’re A Menards Customer

Understand what changed. Menards’ advertising must now clearly state the “11% rebate” is store credit for future purchases, not an immediate discount. Look for updated signage and disclosures in stores and ads.

Check pending rebates. Visit Menards’ online rebate tracker. Your claim status must update within 48 hours of submission under new rules.

Save documentation for future purchases. You now have at least one year to submit rebate claims. Keep receipts and rebate forms organized without time pressure.

Object if you disagree. If you believe the settlement inadequately addresses Menards’ conduct or that individual customer compensation should be included, file written objections by February 19, 2026. Objections should be sent to the court overseeing the settlement (check state attorney general websites for exact filing instructions).

Monitor the April 30 hearing. Court approval isn’t guaranteed. If the court rejects the settlement, negotiations could continue or litigation could proceed.

Frequently Asked Questions

What is the Menards lawsuit about?

Ten states sued Menards for deceptive “11% OFF” advertising that falsely implied checkout discounts when the company only offered mail-in rebates for store credit on future purchases. States also alleged COVID-19 price gouging on essential items in early 2020.

Will I receive money from the Menards settlement?

No. This is a regulatory enforcement settlement, not a consumer class action. The $4.25 million goes to state treasuries for consumer protection programs, not individual customers.

How much is the Menards settlement?

$4.25 million total distributed among ten states. Illinois receives $946,633.61; Wisconsin $750,000; Minnesota $632,167; Michigan $637,641.06. Remaining funds distributed to Iowa, Arizona, Kansas, Nebraska, Ohio, and South Dakota.

What is the deadline related to the Menards settlement?

February 19, 2026, is the deadline to file objections. The court holds a final approval hearing April 30, 2026.

What changes is Menards required to make?

Menards must clearly disclose rebates are store credit not point-of-sale discounts, reveal “Rebates International” is Menards, give customers one year to file rebates, update trackers within 48 hours, and not engage in price gouging during emergencies.

Can I still use Menards rebates?

Yes. The rebate program continues but with clearer advertising and better tracking. You have at least one year from purchase to submit claims.

What changed in February 2026 for the Menards lawsuit?

The February 19, 2026, objection deadline approaches. After this date, the court will review objections and hold the April 30, 2026, final approval hearing. No new substantive settlement terms changed in February 2026.

Last Updated: February 1, 2026

Disclaimer: This article provides information about the Menards multistate settlement based on official attorney general announcements and court filings. It is not legal advice.

Call to Action: If you disagree with the settlement terms, file written objections by February 19, 2026, before the April 30 court hearing.

Stay informed, stay protected. — AllAboutLawyer.com

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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