California Assembly committee advances AB 1374 to strengthen rental car price transparency

The California Assembly Privacy and Consumer Protection Committee convened on May 6, 2025, to discuss two significant bills aimed at enhancing consumer protection in the rental car industry. The meeting highlighted concerns over privacy and transparency in pricing, reflecting ongoing issues faced by consumers.

The first bill, AB 1197, addresses the use of geofencing technology by rental car companies. Committee members expressed mixed feelings about the necessity of legislation to regulate this technology, which is intended to prevent car theft. Some members noted that while the bill aims to protect consumer privacy, the need for such a law is unfortunate given the prevalence of car thefts. The committee ultimately supported the bill, emphasizing the importance of balancing consumer privacy with effective theft prevention measures.

The second bill, AB 1374, focuses on deceptive pricing practices in the rental car industry. It aims to require rental car companies to disclose the total price, including all mandatory fees, upfront when consumers select their rental details. The bill's author, Assemblymember Berman, highlighted the frustration consumers experience when hidden fees are revealed late in the rental process. Supporters of the bill, including consumer advocacy groups, argued that transparency is essential for informed decision-making. However, representatives from rental car companies expressed concerns about potential litigation arising from changes in the language of existing laws, fearing that the new requirements could lead to confusion and unintended consequences.

The committee's discussions underscored the ongoing challenges in ensuring consumer protection in the rental car market, particularly regarding pricing transparency and the use of technology. As the bills move forward, the committee aims to refine the language and address the concerns raised by industry stakeholders while prioritizing consumer rights. The next steps will involve further deliberations and potential amendments to ensure that the legislation effectively balances the interests of consumers and rental car companies.