Car hire websites ordered to introduce ‘drive-away’ pricing
Car hire comparison sites have been told they must provide transparent prices, including all mandatory and optional charges, to customers trying to find the best deals.
The Competition and Markets Authority (CMA) says it wants to see a ‘drive-away price’ displayed before customers agree to the purchase.
The industry has been given until next January to implement the changes and if it fails to do so, the CMA is threatening to act.
The CMA estimates half of all car hire purchases start with comparison sites and it wants customers to be given the same information on these sites as they get from the car hire firm’s own websites.
It wants comparison sites to provide easily accessible information on:
· Excess insurance.
· Pre-authorisations or deposits
· Collision damage waiver exclusions – such as damage to tyres.
· Young driver surcharges
· One-way fees
· Warnings about the need for snow chains (a legal requirement in some countries in winter
· Full-to-empty charges where customers are charged for fuel in advance
In a letter sent to big car hire comparison sites, the CMA said: "If you comply with these changes the CMA is less likely to prioritise enforcement action against you."
It said action begun last year had already led to five leading EU car rental companies committing to improving the way they deal with customers.
James Macbeth, CMA project director, said: "The changes made by car hire companies earlier this year are already having a positive impact for holidaymakers hiring a car in the UK and abroad.
"However, we know that a significant amount of business is done through comparison websites and we are confident that by working with them we can ensure an even better service for motorists.
"This will make it easier to shop around, compare different providers and get the best deal. We welcome the willingness to improve practices we have already seen from the industry and expect that to continue."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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