AB 1374

Existing law authorizes a rental company, when providing a quote, or imposing charges for a rental, to separately state the rental rate, additional mandatory charges, if any, and a mileage charge, if any, that a renter must pay to hire or lease the vehicle for the period of time to which the rental rate applies, and authorizes the rental company to impose other additional charges, as specified. Existing law prohibits a rental company from charging in addition to the rental rate, additional mandatory charges, or a mileage charge, as those may be applicable, any other fee that is required to be paid by the renter as a condition of hiring or leasing the vehicle. Existing law requires, if a rental company states a rental rate in print advertisement or in a quotation, the rental company to disclose clearly in that advertisement or quotation the terms of mileage conditions relating to the advertised or quoted rental rate, as specified, and requires all rate advertisements to include a prominently displayed disclaimer providing that additional specified mandatory charges may be imposed. This bill would additionally apply the above-described provisions to third parties. The bill would also specify that mandatory third-party service fees are included in the additional mandatory charges that a rental company or third party shall not charge in addition to the rental rate. The bill would additionally require a rental company or third party to provide the total charges estimate for the entire rental, including all taxes and fees imposed by a government, as soon as specified information about the rental is provided to the rental company or third party. The bill would require a rental company or third party to clearly indicate the fuel source, as defined, of the vehicle prior to completion of a reservation. Existing law requires rental companies that impose additional mandatory charges to comply with certain requirements, including providing the person receiving the quote with a good faith estimate of the rental rate and all additional mandatory charges, as well as the total charges for the entire rental, as specified. This bill would instead require a rental company to provide the person receiving the quote with a total charges estimate of the rental rate and all additional mandatory charges for the entire rental, as specified. The bill would also require a third party that imposes additional mandatory charges to comply with specified requirements. Existing law requires a person or entity other than a rental company, including a passenger carrier or a seller of travel services, to clearly disclose the existence and amount of additional mandatory charges, as applicable, and provides that the rental car company is not responsible for the failure of that person or entity to comply with this provision if a rental company provides the person or entity with rental rate and additional mandatory charges information. This bill would instead provide that, with regard to specified requirements on imposing charges for a rental, a rental company is not responsible for the failure of a third party to comply with those requirements if the rental company provides the third party with information about certain charges, and also that, if a rental company fails to comply with those requirements when providing a third party with information about certain charges or fails to provide the third party with additional mandatory charges and fuel source information along with the rental rate information, the third party is not responsible for that failure.