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Sponsors
1 Co-sponsor
History
- Referred to consumer protection
- Referred to consumer protection
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Prohibits rental car companies from discriminating on the basis of geographical location
In Assembly Committee · Consumer Affairs And Protection · Sponsor Brian Kavanagh
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to discrimination in the rental of motor vehicles on the basis of geographic location
Purpose
To prohibit the discriminatory practice of refusing to rent, or adding extra terms, conditions or surcharges to the rental of a vehicle based on the geographic location of the residence of the renter.
Summary of provisions
Would prohibit rental vehicle companies from refusing to rent, imposing any additional charge, or imposing any additional terms or conditions on the rental of a vehicle based on the geographic location of the residence of the renter. Would subject violations to a civil penalty of not more than $1,000 and create a limited private right of action for individuals aggrieved under the law. Individuals could sue to enjoin and recover actual damages or $250, whichever is greater. The court could also award a penalty up to $1500 for willful, knowing violations and reasonable attorneys' fees to a prevailing plaintiff.
Justification
Some vehicle rental companies currently tack on an onerous geographic surcharge to rent a vehicle, in addition to the basic rate, for renters living in the Bronx, Brooklyn, and Queens, no matter where in the state the consumer actually takes possession or uses the vehicle. This surcharge is tacked on even it the consumer is renting the vehicle from an out-of-state location.
The New York City Council's effort to outlaw this discriminatory practice in 1992 (Int. No. 71A March 12, 1992) was promptly challenged by Hertz which sued to enjoin this local law.
In 1997 the Assembly Consumer Affairs and Protection Committee conducted an investigation and public hearing on consumer grievances about car rental company discriminatory practices. The Committee published its findings in the report "The Business Practices of the Rental Vehicle Industry." With respect to geographic discrimination alone, the report includes allegations of: being denied a rental vehicle due to living "in a high crime area" (American Rental Systems); being charged over $100 above a quoted price for the same rental from a different location "because a lot of people in the Bronx steal cars" (Budget Car Rental Agency); being refused the vehicle of the consumer's choosing "because it is the policy of Enterprise not to furnish any residents of 718 area codes with vehicles such as Cadillacs or Park Avenues"; and being "informed that if I was flying in as a passenger they would be glad to rent me a car. If I committed the crime of living in the neighborhood they would not" (Budget).
Legislative history
2005-06: Senate Consumer Protection Cmte. Assembly Cons Affairs & Protection Cmte.
2004: Senate Consumer Protection Cmte. Assembly Codes Cmte
2003: Senate 3rd Reading Calendar Assembly Consumer Affairs & Protection Cmte.
Fiscal impact on the state
None.
Effective date
This act shall take effect on the one hundred twentieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.