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Competition watchdog launches probe into car hire comparison websites

A probe into two car hire comparison websites has been instigated by the UK competition watchdog.

The Competition and Markets Authority is to investigate illegal hidden charges and unexpected fees imposed on customers.

The two unnamed car rental sites are being investigated “due to concerns they are breaking consumer law by hitting customers with hidden charges and unexpected fees, such as for fuel, or late night pick-ups and drop-offs”.

The enforcement action follows the CMA working with car hire comparison sites over the last year to ensure customers get clear and accurate prices.

This has resulted in a “significant improvement” in the accuracy and clarity of information on car rental price comparison websites.

For example, most comparison websites now clearly flag young driver surcharges and one-way fees in the prices they quote.

“However, a small number of businesses have been identified which may have still not made adequate improvements,” the CMA announced.

Besides the two enforcement cases, the CMA has issued letters to 40 companies requesting them to maintain standards and make improvements to comply with the law.

The advice makes clear the CMA’s expectations, such as:

• including all extra charges in the price they first give their customers;

• clearly setting out fuel pricing policies to customers; and

• warning them about high excess or deposits amounts.

The move builds on an earlier review with the European Commission into the ‘Big 5′ car rental firms – Avis Budget, Enterprise Rent-a-Car, Europcar, Hertz and Sixt – in 2015 which resulted in an estimated £100 million in savings for UK customers.

CMA project director James MacBeth said: “For many people hiring a car is an essential component to days out, holidays and trips.

“No one should be misled or face unexpected charges, whether they choose to book directly with the car hire company or through a comparison site.

“While we have seen improvements in the way car hire comparison sites quote prices, we are still concerned that some companies may not have faced up to their legal obligations, and as a result we have opened two enforcement cases.

“We expect this sector to provide clearer information about the true costs, and to explain upfront what customers will actually pay.

“Businesses must read our advice and make the necessary changes. If companies break the law they risk enforcement action, as these cases show.”

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