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Financial Services Law Insights and Observations

Florida Attorney General settles with car rental company for misleading fee disclosures

State Issues Courts Disclosures State Attorney General Settlement Add-On Products

State Issues

On January 22, the Florida Attorney General announced a settlement with a car rental automotive group resolving allegations the company did not adequately disclose add-on fees for cashless tolls and other related add-on charges. According to the settlement, the Attorney General launched an investigation after receiving consumer complaints alleging the company did not clearly disclose that consumers would be charged $15 per cashless toll, in addition to the actual toll fees. Additionally, consumers who opted into an add-on product that would allow them to go through cashless tolls without penalty alleged the company misled them regarding that product’s fees. The settlement requires the company to (i) clearly and conspicuously disclose all fees regarding cashless tolls or associated products within written agreements; (ii) provide clear disclosures regarding fees on their website, online reservation system, confirmation emails and at the rental counters; (iii) refund fees paid for tolls or the associated add-on product to consumers who were charged between January 1, 2011 and January 7, 2019, and who submit claim forms; and (iv) provide accurate disclosures on damage waivers. The settlement also prohibits the company from charging consumers for a higher car class when the car class reserved by a consumer is unavailable.