Online car rentals and concealed costs for consumers

Subject: Online car rentals and concealed costs for consumers

Customers who want to hire a car are often faced with unexpected costs. This has happened in the past, and continues to do so at present. Steps have already been taken, such as the establishment of the European Car Rental Conciliation Service (ECRCS), to which customers can submit complaints, after which ECRCS can mediate between customers and affiliated car rental firms. Membership of the ECRCS is voluntary.

Nowadays, it has become more common for people to book rental cars online, which presents unique challenges. On occasion, people find themselves being charged more than they were promised. For example, at the point when a customer goes to collect a car they may be asked to pay more than agreed, placing them in a position where they cannot refuse to pay the extra money unless they are prepared to make do without a car. Sometimes the additional charges are genuinely excessive, with consumers paying several times more than what they were originally offered.

1. Will the Commission take measures in future, such as introducing a compulsory charter for all car rental companies operating in Europe, laying down clear and binding rules? If any measures are planned, what are they, and has any progress been made with them? 2. Does the Commission have any plans to take measures, particularly with regard to online booking of rental cars?

Does the Commission have any plans to take measures, particularly with regard to online booking of rental cars?Answer given by Ms Jourová on behalf of the European Commission

(13 March 2019)

In January 2017, the five major car rental companies committed to pricing transparency and clearer terms and conditions, including clarity on insurance and waiver policies and tank refuelling options, and more fairness when handling alleged instances of damage to vehicles (1). Misleading consumers on prices and essential characteristics of the service offered is forbidden under the Unfair Commercial Practices Directive (2005/29/EC) (2). A detailed explanation of the transparency requirements in the car rental sector has been published by consumer authorities (3). Leaseurope, an umbrella body representing both the leasing and automotive rental industries in Europe, has also published new industry guidelines (4), in line with recommendations from national comsumer authorities.

As the Commission pointed out in its answer to written questions E-006177/2018, E-006037/2018 and E-006196/2018, many different players are active in the car rental market, which complicates enforcement; not only car rental companies themselves, but also franchisees and intermediaries. All should inform the consumer in a clear way on the issues mentioned above. National authorities, which are responsible for the enforcement of consumer laws, are regularly taking measures against companies breaching consumer protection laws and sharing this information among themselves and with the Commission.

To enable these authorities to perform their work, it is important that consumers who encounter problems with their rental car, file a complaint with the competent authority in their country.

⋅1∙ For more information: https://ec.europa.eu/info/live-work-travel-eu/consumers/enforcement-consumer-protection/coordinated-actions_en#carrental

⋅2∙ https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2005:149:0022:0039:en:PDF

⋅3∙ https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52016SC0163

⋅4∙ https://bvrla-sslstaging5.pixl8.london/uploads/assets/uploaded/959f6fc2-2e83-4424-97c79f98dca93a49.pdf