Calif. Law Unbundles Corporate Pricing
SACRAMENTO, Calif. –- Gov. Arnold Schwarzenegger has signed a bill permitting California rental operators to separately quote and impose extra charges -- charges in excess of the rental rate -- ...
SACRAMENTO, Calif. –- Gov. Arnold Schwarzenegger has signed a bill permitting California rental operators to separately quote and impose extra charges -- charges in excess of the rental rate -- to corporate clients with commercial contracts. The new law requires that operators provide a good-faith estimate of the total charges for the rental.
The law permits rental companies to isolate extra charges, such as airport concession fees and vehicle license fees, and designate them as pass-through charges in a corporate contract.
The bill (AB 2761) drew support from Cendant Car Rental Group (Avis and Budget), Hertz Corp., and Vanguard Car Rental USA (Alamo and National). But Enterprise Rent-A-Car opposed the legislation, arguing it would create an un-level playing field among competitors.
Assemblyman Mark Leno (D-San Francisco) introduced the bill.
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