New Jersey Assembly Bill A1537

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Imposes certain requirements on motor vehicle rental companies that equip vehicles with electronic toll transponders.

Impact

The bill's impact on state laws is significant as it classifies violations of its provisions as unlawful practices under New Jersey's consumer fraud act. This shift in regulation emphasizes the need for rental companies to be upfront about the charges involved with electronic toll collection, fostering greater transparency and accountability within the industry. By enabling renters to have a choice, the bill aims to alleviate unexpected financial burdens that many consumers face when renting vehicles in areas with extensive toll road systems.

Summary

Assembly Bill A1537 seeks to regulate the practices of motor vehicle rental companies that equip their vehicles with electronic toll transponders, such as E-ZPass. The bill mandates that rental companies must allow renters the option to either opt-out of using the toll transponders or use their own. This is an important consumer protection measure aimed at empowering renters who may be unaware of the costs associated with using rental vehicles equipped with these devices.

Contention

One potential point of contention is the provision allowing rental companies to charge a fee of up to three times the actual toll cost, capped at $5, if a renter opts-out of using the company’s electronic device. This might be perceived as an additional cost that could deter renters from opting-out, potentially leading to criticism regarding fair pricing practices within the industry. Furthermore, the bill includes a provision that this charge can only apply under specific conditions, which further complicates the landscape of consumer rights and company responsibilities in rental agreements.