[Federal Register: November 30, 2007 (Volume 72, Number 230)]
[Notices]
[Page 67726-67727]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30no07-50]
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FEDERAL TRADE COMMISSION
[File No. 062 3042]
Budget Rent-A-Car System, Inc.; Analysis of Proposed Consent
Order to Aid Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed Consent Agreement.
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SUMMARY: The consent agreement in this matter settles alleged
violations of federal law prohibiting unfair or deceptive acts or
practices or unfair methods of competition. The attached Analysis to
Aid Public Comment describes both the allegations in the draft
complaint and the terms of the consent order--embodied in the consent
agreement--that would settle these allegations.
DATES: Comments must be received on or before December 20, 2007.
ADDRESSES: Interested parties are invited to submit written comments.
Comments should refer to ``Budget Rent-A-Car System, File No. 062
3042,'' to facilitate the organization of comments. A comment filed in
paper form should include this reference both in the text and on the
envelope, and should be mailed or delivered to the following address:
Federal Trade Commission/Office of the Secretary, Room 135-H, 600
Pennsylvania Avenue, N.W., Washington, D.C. 20580. Comments containing
confidential material must be filed in paper form, must be clearly
labeled ``Confidential,'' and must comply with Commission Rule 4.9(c).
16 CFR 4.9(c) (2005).\1\ The FTC is requesting that any comment filed
in paper form be sent by courier or overnight service, if possible,
because U.S. postal mail in the Washington area and at the Commission
is subject to delay due to heightened security precautions. Comments
that do not contain any nonpublic information may instead be filed in
electronic form as part of or as an attachment to email messages
directed to the following email box: consentagreement@ftc.gov.
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\1\ The comment must be accompanied by an explicit request for
confidential treatment, including the factual and legal basis for
the request, and must identify the specific portions of the comment
to be withheld from the public record. The request will be granted
or denied by the Commission's General Counsel, consistent with
applicable law and the public interest. See Commission Rule 4.9(c),
16 CFR 4.9(c).
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The FTC Act and other laws the Commission administers permit the
collection of public comments to consider and use in this proceeding as
appropriate. All timely and responsive public comments, whether filed
in paper or electronic form, will be considered by the Commission, and
will be available to the public on the FTC website, to the extent
practicable, at http://www.ftc.gov. As a matter of discretion, the FTC makes
every effort to remove home contact information for individuals from
the public comments it receives before placing those comments on the
FTC website. More information, including routine uses permitted by the
Privacy Act, may be found in the FTC's privacy policy, at http://www.ftc.gov/ftc/privacy.htm
.
FOR FURTHER INFORMATION CONTACT: Lisa Rosenthal or Sarah Schroeder, FTC
Western Region, San Francisco, 600 Pennsylvania Avenue, NW, Washington,
D.C. 20580, (415) 848-5100.
SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), and Sec. 2.34 of
the Commission Rules of Practice, 16 CFR 2.34, notice is hereby given
that the above-captioned consent agreement containing a consent order
to cease and desist, having been filed with and accepted, subject to
final approval, by the Commission, has been placed on the public record
for a period of thirty (30) days. The following Analysis to Aid Public
Comment describes the terms of the consent agreement, and the
allegations in the complaint. An electronic copy of the full text of
the consent agreement package can be obtained from the FTC Home Page
(for November 20, 2007), on the World Wide Web, at http://www.ftc.gov/os/2007/11/index.htm.
A paper copy can be obtained from the FTC Public
Reference Room, Room 130-H, 600 Pennsylvania Avenue, NW, Washington,
D.C. 20580, either in person or by calling (202) 326-2222.
Public comments are invited, and may be filed with the Commission
in either paper or electronic form. All comments should be filed as
prescribed in the ADDRESSES section above, and must be received on or
before the date specified in the DATES section.
Analysis of Agreement Containing Consent Order to Aid Public Comment
The Federal Trade Commission has accepted an agreement to a
proposed consent order with Budget Rent-A-Car System, Inc.
(``Budget''), one of the nation's largest rental car agencies.
The proposed consent order has been placed on the public record for
thirty (30) days for reception of comments by interested persons.
Comments received during this period will become part of the public
record. After thirty (30) days, the Commission will again review the
agreement and the comments received and will decide whether it should
withdraw from the agreement or make final the agreement's proposed
order.
This matter concerns deceptive practices by Budget with respect to
an automatic, flat ``EZ Fuel'' fee it charges to renters who drive
fewer than 75 miles, regardless of whether they return their rental
with a full gas tank, unless they present a receipt. Budget has failed
to adequately disclose the EZ Fuel fee or how renters can have the fee
reversed.
The complaint alleges that Budget engaged in deceptive practices
relating to its EZ-Fuel program. The complaint alleges that Budget has
falsely represented that, if consumers return their rental vehicle with
a full gas tank, they will not have to pay any fuel-related charge,
fee, or cost. In numerous instances, however, consumers who drive their
vehicle fewer than 75 miles
[[Page 67727]]
will have to pay the EZ Fuel fee, regardless of whether they return the
vehicle with a full gas tank, unless they present a gas receipt.
The complaint further alleges that Budget failed to disclose and
failed to disclose adequately that consumers who drive their rental
vehicle fewer than 75 miles and refuel can have the EZ Fuel fee
reversed only if they present a fuel receipt. In addition, Budget
failed to disclose that consumers without corporate accounts would have
to present their fuel receipt inside at the rental counter after
returning their rental vehicle and checking out on the return lot.
These facts would be material to consumers in their rental transaction.
The failure to disclose these facts, in light of the representations
made, was a deceptive practice.
The proposed order contains provisions designed to prevent Budget
from engaging in similar acts and practices in the future. Part I
prohibits Budget from misrepresenting (A) that renters who return their
vehicle with a full tank of gas will not incur any fuel-related
charges; (B) any fuel-related charge, fee, cost, or requirement; or,
(C) any charge, fee, or cost, or term or condition, relating to the
rental of any vehicle.'' Part II of the proposed order requires that
Budget disclose, clearly and conspicuously, at the time of rental
transaction: (A) any fuel related charges, fee, or costs; (B) any
material requirements related to the fuel-related charge; and (C) the
manner, if any, in which the renter can avoid such fuel-related
charges. Finally, Part III of the proposed order prohibits Budget from
making any representation about the benefits, costs, or parameters of
any fuel-related option unless it discloses clearly and conspicuously,
and in close proximity to the representation, any material terms or
conditions relating to that fuel option. These conduct provisions
prohibit the deceptive practices alleged in the complaint, but do not
prohibit Budget from imposing fuel-related charges, so long as such
charges are disclosed as required by the proposed order.
Parts IV through VII of the proposed order are reporting and
compliance provisions. Part IV requires Budget to retain documents
relating to its compliance with the order. Part V requires
dissemination of the order now and in the future to persons with
responsibilities relating to the subject matter of the order. Part VI
ensures notification to the FTC of changes in corporate status. Part
VII mandates that Budget submit compliance reports to the FTC. Part
VIII is a provision ``sunsetting'' the order after twenty (20) years,
with certain exceptions.
The purpose of this analysis is to facilitate public comment on the
proposed order, and it is not intended to modify the terms of the
proposed order in any way.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. E7-23293 Filed 11-29-07: 8:45 am]
BILLING CODE 6750-01-S