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Protecting Consumers from Rental Car Overbooking: New Compensation Rules

This new law aims to protect rental car customers from situations where their reserved vehicle is unavailable. It introduces specific compensation rules, offering customers a choice between a more expensive car at no extra cost, a cheaper car with a price difference refund, or monetary compensation. This is intended to increase reservation certainty and consumer rights.
Key points
If a rental company cannot honor a reservation, they must offer a more expensive vehicle at no additional cost.
Alternatively, the company can offer a less expensive car and refund the price difference.
Customers can also receive compensation equal to 200% of the rental price, up to $500 per day.
The Federal Trade Commission (FTC) will enforce these rules, and states and individuals can sue companies for violations.
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Expired
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Additional Information
Print number: 118_HR_3695
Sponsor: Rep. Garcia, Robert [D-CA-42]
Process start date: 2023-05-25
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

VROOM Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_3695.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-05-25.

What are the main provisions?

Key points include:

  • If a rental company cannot honor a reservation, they must offer a more expensive vehicle at no additional cost.
  • Alternatively, the company can offer a less expensive car and refund the price difference.
  • Customers can also receive compensation equal to 200% of the rental price, up to $500 per day.
  • The Federal Trade Commission (FTC) will enforce these rules, and states and individuals can sue companies for violations.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Garcia, Robert [D-CA-42].

What is the latest detailed status?

The latest detailed status is: Referred to the Subcommittee on Innovation, Data, and Commerce.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Transport Courts and Law Economy