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AUTOS – RENTALS
SB X2 10 (Chap. 8) and SB 348 (Chap. 156); amends CC section 1936.015; adds Veh section 1936.015
Background: This new law hides total car rental prices from consumers. It was enacted at a special session without a committee hearing. Previous law temporarily increased the vehicle license fee (VLF) from 0.65% to 1.15%. Currently, the VLF – like other operating expenses, such as rent, payroll, advertising costs – is "bundled" into the daily or weekly "rental rate" for a rental car that is advertised, quoted, and charged to consumers. Specified add-on fees, such as taxes or mileage charges are “unbundled” and permitted to be quoted and charged separately.
The new law:
- Allows rental companies to “unbundle” the VLF, and not list it as part of the advertised price.
- Prohibits a rental car company from advertising a rental rate that includes the higher VLF, a customer facility charge, mileage charges, or taxes.
- Requires the total charge to be on an Internet site, but it can be hidden two web pages away.
- Requires that at the time the rental starts, the rental contract disclose the total of the rental rates, taxes, increased vehicle license fee, customer assessment fees, airport concession fees, and tourist commission assessments for the entire time of the rental. At this point, this information may not be very helpful.
For more information:
County of Los Angeles Department of Consumer Affairs
B-96 Kenneth Hahn Hall of Administration
500 W. Temple Street * Los Angeles, CA 90012-2706
Telephone (800) 593-8222 (within the County) * (213) 974-1452
Web site: dca.lacounty.gov