VROOM Act Vehicle Rental Order Obligation Mandate Act
Impact
The VROOM Act empowers the Federal Trade Commission (FTC) to enforce the regulations pertaining to this consumer protection law, considering any violation as an unfair or deceptive act under existing laws. It also allows state attorneys general to bring civil actions on behalf of residents when they believe their interests are threatened by such violations. This provision enhances the ability of states to address consumer issues related to rental car services, aligning federal regulation with state interests in protecting consumer rights.
Summary
House Bill 3695, titled the 'Vehicle Rental Order Obligation Mandate Act' or the 'VROOM Act', aims to protect consumers from overbooking practices by rental car companies. It sets forth obligations for these companies to honor reservations made by consumers and outlines various forms of compensation in instances where a reservation is not fulfilled. The bill specifies that if a rental car company fails to provide a vehicle of the class reserved by the consumer, they must offer alternatives including a higher class vehicle at no additional cost, a lower class vehicle along with a price difference refund, or a monetary compensation up to $500 per day of the reservation.
Contention
Debate around this bill may arise over the implications for rental car companies and the operational frameworks they would need to implement to comply with the new regulations. Some stakeholders may argue that the compensation requirements could increase costs for rental companies, potentially leading to higher prices for consumers. On the other hand, proponents emphasize the necessity of safeguarding consumer interests against frequent overbooking and reservation failures, reflecting a growing demand for accountability within the rental car industry.