Bill by Rep. Robert Garcia would hold car rental companies accountable for overbooking

DOWNEY — Congressman Robert Garcia (CA-42) today introduced the “Vehicle Rental Order Obligation Mandate (VROOM) Act,” which would require rental car companies who cannot fulfill a confirmed reservation to compensate the customer.

Rental car companies are currently under no obligation to compensate the customer when they cannot fulfill a confirmed reservation, unlike when an airline overbooks.

Garcia is joined by cosponsors Eleanor Holmes Norton (DC), David Trone (MD-6), Emanuel Cleaver, II (MO-05), Nikki Budzinski (IL-13), Henry C. "Hank" Johnson, Jr. (GA-04). Text of the bill can be found here.

Under the bill, consumers would have the choice of receiving double the daily confirmed rate – up to $500/day – an upgrade at no additional charge to the consumer, or a downgrade with a refund for the price difference.

“There is nothing more frustrating than getting off a long flight, showing up at the rental car counter and being told the company has no cars for you despite you having a reservation, and they don’t owe you a thing,” said Garcia. “American consumers are sick and tired of junk fees and broken promises from billion-dollar corporations. The “Vehicle Rental Order Obligation Mandate (VROOM) Act,” is a common-sense solution to ensure rental companies don’t just take a reservation, but actually hold a car.”

The bill has been endorsed by Consumer Reports, Public Citizen, Consumer Action, American Economic Liberties Project, and former FTC Chairman Jon Leibowitz.