Committee advances bill requiring upfront disclosure of total rental‑car prices on merchant sites
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Summary
AB 1374 would require rental‑car providers and third‑party sites to display the total estimated charges once a consumer selects dates, location and vehicle type. Supporters said the measure closes gaps that leave consumers surprised by added fees; industry called for clarifications to avoid litigation.
Assemblymember Berman’s AB 1374 would require that, once a consumer selects rental dates, location and vehicle type, the merchant display an estimate of total charges—including taxes and mandatory fees—so consumers can make informed comparisons before completing a booking.
Berman said deceptive or hidden fees have frustrated consumers and that the bill builds on prior California work to require hotels to display full prices. The Consumer Federation of California presented a “secret‑shopper” review and screenshots showing instances where advertised prices grew substantially by the time of payment; the sponsor said in one example the total rose by more than $100 for a five‑day rental.
Enterprise and other industry witnesses opposed aspects of the bill as drafted, warning that changes to existing statutory language could invite litigation because California’s rental disclosure law includes a private right of action and established terminology such as “good faith estimate.” John Moffitt of Enterprise said existing disclosures generally comply with the law and urged clearer statutory definitions rather than broad rewording that could be redundant or ambiguous.
Committee members acknowledged the problem of surprise fees and encouraged continued negotiations. After questions and discussion the author accepted committee amendments and the bill was advanced; committee staff recorded the do‑pass‑as‑amended vote and reported the measure out of committee with the recorded tally.
Sponsors said the bill aims to protect consumers who must make budget‑sensitive choices and to extend transparent pricing obligations to third‑party sites that broker rentals; industry asked for clearer statutory terms to minimize litigation risk.
