Car rental companies’ advertising practices

Subject: Car rental companies’ advertising practices

The single market is one of the key assets and success stories of the European Union. The protection of consumer rights across the single market is a fundamental indicator of its smooth and successful operation. In that respect, the Commission is tasked with ensuring that these rights are protected when Europeans are at home and also when they travel to other Member States.

I have been contacted in relation to the issue of the transparency of advertising by car rental companies. Following an increase in complaints, the Commission engaged with the key players in the car rental market in 2017 to tackle the issue of unfair advertising and charging practices. In March 2019, five industry leaders changed their operating practices towards more transparency for the consumer.

1. In the period since then, I would like to know if there have been further complaints about this type of behaviour or unfair practices on the part of car rental companies?

2. Has monitoring shown that the companies are complying in implementing their commitments?

3. What action, if any, has the Commission taken against non-compliant companies to ensure enforcement?

Answer given by Mr Reynders on behalf of the European Commission

(2 October 2020)

The Commission continues to monitor all market players of the car rental sector, including the five rental companies that were already investigated in a coordinated action of the Consumer Protection Cooperation (1) (CPC) network in 2017. While some of those companies fully implemented their commitments, others committed to make the changes by the first quarter of 2020. The CPC network is currently assessing their practices, in particular transparency of pricing, insurance and fuel policies.

In the meantime, available data, such as the reports from the European Consumer Centres, show that there are still a number of complaints in the car rental sector. These complaints, together with all other relevant evidence, will be taken into consideration by the CPC network to assess whether the situation in the car rental market has improved for consumers.

Although the companies involved in said coordinated action cover two out of three of all private car rentals in the EU, other traders, such as intermediaries and smaller companies play an important role in this market. In order to ensure satisfactory compliance with EU consumer legislation by the whole car rental sector, the Commission procured a study to review the practices of the main car rental intermediaries. The study’s results should be available in the first half of 2021. While the Commission has no direct enforcement power in the field of consumer protection, these findings will help the national authorities to take the necessary measures against companies that continue to breach consumer protection laws.

⋅1∙ Based on Article 9 of Regulation (EC) No 2006/2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws. As

of 17 January 2020, the revised CPC Regulation ((EU) 2017/2394) is applicable. | | ( | | )