Bill > A587

Introduced Session

This bill makes it an unlawful practice under the consumer fraud act for car rental companies to charge certain fees for using electronic toll transponders, such as E-ZPass, beyond the actual cost of the toll. The bill specifically prohibits a rental company which equips a vehicle with a transponder or other electronic tolling device and does not offer a renter the ability to opt-out of its use from charging more than $2 per day for each day the renter uses a transponder or other electronic tolling device. The bill also prohibits this charge on any day in which the renter: (1) does not drive through an electronic toll collection system, or (2) only drives through an electronic toll collection system with no alternative payment option. The provisions of the bill effectively prohibit rental companies that equip vehicles with toll transponders from charging a usage fee of more than $2 per day for each day the transponder is used at a toll plaza. The amended bill also provides that the fee could only be assessed if cash lanes are available at the toll plazas through which the renter drives. The bill also requires any rental company providing or offering vehicles equipped with electronic toll transponders to clearly and conspicuously include the applicable usage terms and conditions in any rental agreement issued to a renter, and post any applicable terms and conditions in a conspicuous location on the business premises. An unlawful practice is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, violations may result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party. Consumers may be unaware of the significant cost of renting a vehicle in an area with many toll roads, and rental car companies do not always clearly and conspicuously state electronic toll policies or estimate costs. Out-of-town visitors often drive rental cars on major highways that assess tolls, and incur surprisingly significant charges due to the additional fees imposed under the rental agreement. Consumers who do not rent a transponder in order to avoid a charge by a rental company may encounter a problem if they are unable to pay cash at a particular toll plaza with no cash lanes. Because consumers view these charges as price gouging, they are demanding action against these rental car practices.

AI Summary

Committee Categories

Paul Moriarty (D)*,  Gordon Johnson (D),  John McKeon (D), 

Reported out of Assembly Comm. with Amendments, 2nd Reading (on 10/15/2018)