12 September 2024. Travelers United, a nonprofit consumer protection organization, has filed lawsuits against car rental companies Avis and Budget, over their practice of systematically charging consumers mandatory “junk fees” on top of the advertised car rental prices.
The lawsuits, filed by Tycko & Zavareei LLP and Cutter Law P.C., detail how Avis and Budget have engaged in a deceptive pricing strategy commonly referred to as “drip pricing” or “bait and switch” advertising. Rather than disclosing the full cost up front, these companies advertise one price but add mandatory “service fees” late in the transaction process, increasing the total cost of the rental by more than 10%.
“Last-minute, mandatory fees like those charged by Avis and Budget have been consistently classified as ‘junk fees’ by the Federal Trade Commission (FTC),” said Peter Silva, one of Travelers’ outside attorneys. “Such practices not only mislead consumers but also cheat them out of tens of millions of dollars each year.”
Travelers United, represented by Shana Khader and Peter Silva of Tycko & Zavareei LLP and Wesley Griffith of Cutter Law P.C., seeks relief under the District of Columbia Consumer Protection Procedures Act (CPPA). The goal of the lawsuit is to stop Avis and Budget from falsely advertising rental car prices.
“Consumers deserve transparency and honesty in pricing,” said Lauren Wolfe, Travelers United’s General Counsel. “These lawsuits are a critical step in holding rental car companies accountable and ensuring that Americans are charged the prices they were originally promised.”
“These lawsuits stand for a simple proposition,” continued Wesley Griffith, one of Travelers’ outside attorneys, “the price you see should be the price you get. It’s not just common sense. It’s the law.”
About Travelers United
Travelers United is a 501(c)(3) non-profit consumer protection organization dedicated to advocating for American travelers. The organization has long fought against unfair and deceptive practices in the travel and hospitality industries.
The cases are Travelers United, Inc. v. Avis Car Rental, LLC, No. 2024-CAB-0005792 and Travelers United, Inc. v. Budget Rent A Car System, Inc., No. 2024-CAB-005736 in the Superior Court for the District of Columbia.
Read more on The Wall Street Journal, “Hotel and Airline Junk Fees Are Easier to Spot–And You’ll Keep Paying” (16 Sept 2024)
Read more on View from the Wing, “Avis And Budget’s Hidden Fees Exposed In New Lawsuit: The Dirty Secret Of Rental Car Pricing” (18 Sept 2024)