California Enacts Vehicle Rental Disclosure Law

California Gov. Arnold Schwarzenegger signed a bill on Aug. 21 that would require auto rental companies to advertise the entire amount of a customer’s bill, except taxes, to include the increased vehicle license fee, any customer facility charge, and any mileage charge. Senate Bill 348, titled “Passenger Vehicle Rentals, Advertising,” was sponsored by State Sen. Dave Cogdill.

The new law, with an effective date of May 21, 2009, also states that if customer facility charges, airport concession fees, or tourism commission assessments are imposed, the auto rental company must provide the customer with a good faith estimate of the rental rate and certain taxes and charges, including the increased vehicle license fee, when the quote is given. The rental companies must “clearly and conspicuously” disclose in the rental contract the total rate and certain taxes and charges, including the increased vehicle license fee at the time of the rental.

The law also states that every three months, a rental company must calculate the daily increased vehicle license recovery fee by prorating at 1/365 of the average increased vehicle license fee for vehicles in each particular class of vehicle being rented, based on the increase in the annual vehicle license fee actually paid during the preceding 12 months for each class of vehicle being rented.

The law requires the rental companies to reconcile the amount of increased vehicle license fees actually paid by the rental company for each class of vehicle and the amount of increased vehicle license recovery fees charged to customers for rental of vehicles in those classes, and to post that information on its Web site. The bill would prohibit the total of all increased vehicle license fees charged to customers by the rental company for each class of vehicle from exceeding the total of increased vehicle license recovery fees actually paid for vehicles in those classes on an annual basis.

Comment On This Story

Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.


Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

6 Takeaways from the 2018 International Car Rental Show

Technological solutions are finally moving from reality to theory, peer-to-peer platforms are being redefined, China has the biggest room for growth, while Sixt’s U.S. aspirations have only just begun.

The Irony of Customer Service in the Digital Age

Sure, any company would jump at the chance to use technology to reduce labor costs. But it also comes with some big, red, flashing warning lights.

Market Forces Driving Car Rental in 2018

An analysis of the conference calls of Avis Budget Group and Hertz Global Holdings reveal trends and initiatives involving fleet right sizing, pricing, ancillary revenue opportunities, and renting to ride-hailing drivers.

Job Finder: Access Top Talent. Fill Key Positions.