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.
Status:
Expired
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