Auto Rental News
MenuMENU
SearchSEARCH

Travel Agencies File Suit Over RAC Commissions

SAN DIEGO -- Four travel agencies, along with a former travel agency owner, have filed a class-action suit against six major car rental systems, alleging that the RACs have routinely short-chang...

by Staff
July 7, 2003
2 min to read


SAN DIEGO -- Four travel agencies, along with a former travel agency owner, have filed a class-action suit against six major car rental systems, alleging that the RACs have routinely short-changed travel agents on commissions since 1999.

The lawsuit, filed June 12, names Avis, Budget, Dollar, Thrifty, Enterprise and Hertz as defendants.

Ad Loading...

The travel agencies behind the suit are Wide World Tours of Mission Valley, based in California; Travel Support Systems, which operates as Outside Sales Support Network in Florida; Vacation Marketing Group of Hawaii, and International Travel Bureau in California. Cecilia Pedroza, who recently folded her own travel agency, is also a plaintiff.

The lawsuit alleges that the rental companies violated their own commission agreements by failing to include all revenue sources when calculating travel agency commissions. Revenue sources unjustly excluded from commissions have included airport concession recovery fees, vehicle upgrades, collision damage waiver and supplemental liability insurance sales, additional driver fees, fees for drivers under 25, and refueling charges, said Alexander Anolik, one of the attorneys representing the travel agents.

In addition, Anolik said, rental companies have begun deducting processing fees from commission checks issued to travel agents. "They're charging the agents to get their own commission," he said.

"The lawsuit has no merit, and we will oppose it vigorously," said Ted Deutsch, vice president of communications and public affairs for Cendant Car Rental Group, which operates Avis and Budget.

More Rental Operations

Photos of CEOs Colm Brady and Francois Kruger on a blue background and above a headline.
Telematicsby News/Media ReleaseMay 22, 2026

RentalMatics, GeoInt Partner On Rental Car Speed Tracking Tech

Rental operators can now detect and act on speeding while vehicles are still on rent, thereby reducing fines, admin workload, vehicle wear, and safety risks.

Read More →
NextPass 407 ETR

NextPass Expands Toll Payment Service to Highway In Toronto

Fleets and consumer can use a transponder-less option when traveling between Canada and the U.S.

Read More →
A black Jeep is displayed at the Zubie-Bosch-TSD exhibit during the International Car Rental Show.

Zubie, PurCo Integrate Rental Damage Detection With Telematics

The combination brings actionable vehicle insights into PurCo’s PurInspect platform, improving damage detection and operational efficiency for rental fleets.

Read More →
Ad Loading...
50 states map showing LOR rates for each state with different shades of light to dark green

U.S. Length Of Rental (LOR) Declines Slightly in Q1 2026

LOR related to insurance claims overall continues to trend downward, but ongoing market and economic conditions could affect future results while the industry deals with staffing and productivity challenges.

Read More →
Illustration of a driverless futuristic front seat/dashboard view of other cars on a freeway with city skyline on horizon.

Hertz, Uber Deepen Roles In Self-Driving And Driver-Led Fleet Services

The business arrangement connects demand with scalable fleet management services and supports a range of mobility uses.

Read More →
A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

Why Car Rental Can No Longer Run On Workarounds

The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.

Read More →
Ad Loading...
A tech collage of electronic devices against a computer chip blueprint map.
Rental OperationsMay 1, 2026

Why Car Rental Can No Longer Run On Workarounds

The shift from branch-based software to connected operations is turning rental technology into strategic infrastructure.

Read More →
A black Audi SUV superimposed on a historic scene from downtown Tashkent, Uzbekistan.

Carwiz Sets Up Rental Operations In Central Asia

The global franchise operation reaches a first in its rental fleet portfolio with new service in Uzbekistan.

Read More →
A raging brushfire in the countryside.
Rental Operationsby Martin RomjueApril 30, 2026

Where Rental Fleets Must Adjust To Shifting Catastrophe Risks

West Coast disasters pose unique challenges and liabilities for rental fleet operators, who are advised to take steps tailored to their specific situations.

Read More →
Ad Loading...
ARN Industry Newsmakers thumbnail page with ARN and ICRS logos and shots of Nick DiPrima and Martin Romjue
Rental Operationsby Martin RomjueApril 27, 2026

Using AI To Find Rental Car Damage

Angry car renters are storming social media, the mainstream media, and online ratings platforms to complain about charges they claim are either unfounded or excessive.

Read More →
Ad Loading...