Subject: Deepening the single market for rental cars
Currently, there is no specific EU law regulating the car rental sector, but it is one of the areas that receives the most consumer rights complaints in the EU, especially in relation to damage charges, insurance coverage and fuel policies. Consumers are protected by other related EU legal instruments1.
Yet in 2022, a sweep of car rental brokers’ websites showed that 55 % violate EU law2. 27 % of the websites did not clearly mention the name of the intermediary service, 32 % did not clearly indicate which party was bound by the rental terms and conditions and 21 % automatically pre-selected optional paid services3.
The Consumer Protection Cooperation Network consists of national authorities who are responsible for the enforcement of consumer protection laws4. In 2019, the Commission and the top five car rental companies agreed to make pricing more transparent5.
However, this framework falls short of the principle of freedom of movement, since consumers still encounter difficulties owing to insufficient compliance, different Member State legal frameworks on the matter and a lack of accountability from the industry6.
1. How will the Commission ensure better enforcement against the car rental industry if rental car companies continue to fail to fulfil their commitments?
2. Will it propose specific legislation to regulate the car rental sector?
Submitted: 14.11.2022
1 https://www.eccnet.eu/consumer-rights/what-are-my-consumer-rights/travel-and-passenger-rights/road-travel-
rights/car
2 https://ec.europa.eu/commission/presscorner/detail/en/mex_22_4309
3 https://www.eccnet.eu/news/55-screened-online-car-rental-intermediaries-violate-eu-law
4 https://ec.europa.eu/info/live-work-travel-eu/consumer-rights-and-complaints/enforcement-consumer-
protection/coordinated-actions/other-travel-services_en
5 https://ec.europa.eu/commission/presscorner/detail/en/IP_19_1790
https://ec.europa.eu/info/sites/default/files/study_on_the_compliance_of_the_car_rental_intermediaries_ online_services_with_the_requirements_of_the_eu_legislation.pdf
Answer given by Mr Reynders on behalf of the European Commission
(6 January 2023)
The Commission is aware of difficulties consumers encounter in the car rental market. EU consumer protection legislation, such as Directive 2005/29/EC (7) (Unfair Commercial Practices Directive, UCPD) and Directive 2011/83/EU (8) (Consumer Rights Directive, CRD), already applies to traders offering car rentals.
The UCPD prohibits misleading practices including in the car rental sector. Traders have to provide consumers with the information they need to make informed purchasing decisions, e.g. on insurance or fuel options.
Also, car rental companies should not claim costs for damages without prior information and proper justification and the possibility for the consumer to examine the supporting evidence.
The CRD also applies to contracts in the car rental sector, requiring transparency about the trader’s identity, the main characteristics and the price of the service.
These rules need to be effectively enforced in the Single Market to counter unlawful practices and this is the responsibility of national authorities.
The Commission is regularly conducting consumer surveys (9) and examining European Consumer Centres data to flag issues to authorities and encourage them to share their market monitoring experience, including on car rental as demonstrated by the recent sweep results mentioned by the Honorable Member.
⋅1∙ https://www.eccnet.eu/consumer-rights/what-are-my-consumer-rights/travel-and-passenger-rights/road-travel-rights/car
⋅2∙ https://ec.europa.eu/commission/presscorner/detail/en/mex_22_4309
⋅3∙ https://www.eccnet.eu/news/55-screened-online-car-rental-intermediaries-violate-eu-law
⋅4∙ https://ec.europa.eu/info/live-work-travel-eu/consumer-rights-and-complaints/enforcement-consumer-protection/coordinated-actions/other-travel-services_en
⋅5∙ https://ec.europa.eu/commission/presscorner/detail/en/IP_19_1790
⋅6∙ https://ec.europa.eu/info/sites/default/files/study_on_the_compliance_of_the_car_rental_intermediaries_online_services_with_the_requirements_of_the_eu_legislat
ion.pdf
⋅7∙ Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal
market and amending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation (EC) No 2006/2004 of the European Parliament and of the Council (‘Unfair Commercial Practices Directive’), OJ L 149, 11.6.2005, p. 22. ⋅8∙ Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, amending Council Directive 93/13/EEC and
Directive 1999/44/EC of the European Parliament and of the Council and repealing Council Directive 85/577/EEC and Directive 97/7/EC of the European Parliament and of the Council, OJ L 304, 22.11.2011, p. 64.
⋅9∙ https://commission.europa.eu/strategy-and-policy/policies/consumers/consumer-protection-policy/key-consumer-data_en
| | ) Furthermore, the Commission has included in its 2023 Work Programme (10) the review of the Consumer Protection Cooperation Regulation (EU) 2017/2394 (11) (CPC).
The objectives are, inter alia, to enable CPC authorities and the Commission to respond more rapidly to illegal practices affecting entire business sectors, and to increase the deterrence of enforcement cooperation under the CPC Regulation, notably through sanctions.
⋅10∙ Commission work programme 2023, COM(2022) 548 final.
⋅11∙ Regulation (EU) 2017/2394 of the European Parliament and of the Council of 12 December 2017 on cooperation between national authorities responsible for the
enforcement of consumer protection laws and repealing Regulation (EC) No 2006/2004, OJ L 345, 27.12.2017, p.1.