News

Car hire companies told to end ‘discriminatory practices’ in Europe

Car hire companies have been exposed by the European Commission for charging different prices online for the same car rental based on where customers live in Europe.


Charges vary for some motorists, even if they are picking up the same vehicle from the same location and from the same hire company.


The Commission urged rental companies to stop “discriminatory practices” that prevent consumers in various EU countries from getting the best price offered online and benefiting from the opportunities of the single market.


In one case a German driver searched online for a vehicle to hire in the UK. When the customer filled in Germany as country of residence, the price doubled.


In other cases, some consumers have been stopped from making a booking online after the website identified where they were located through their computer’s IP address. This was owing to the website routing them to a country-specific site.


The Commission first raised concerns in 2011, and recently wrote to six international car rental companies, telling them to review their pricing policies.


But it said that it had received an “unsatisfactory” reply from three companies – Europcar, Hertz and Avis. Consequently, it made the letter public on Monday and requested these companies conduct a full review by the end of the month.


Commission vice president in charge of internal market and services Michel Barnier said: “The single market should be a daily reality not only for major international companies but also for consumers in Europe.”


In a statement, Hertz said it was “very surprised to learn of the European Commission’s Press Statement, despite the fact that the Company had already informed the Commission that it fully complies with its obligation not to discriminate against customers.”


The company added: “Hertz has since learnt that the Commission had only objected to the four to six week time which Hertz said it would take to make its voluntary improvements to its websites in order to further enhance the ability of customers to shop around for the best deal.”


Hertz outlined intentions to meet with the Commission in early September to demonstrate its full compliance with its obligations.

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.