NYC turns its attention to complaints about rental cars

Rental car companies are the latest to feel the lash of New York City's revved-up consumer protection programs.

Mayor Zohran Kwame Mamdani and Department of Consumer and Worker Protection (DCWP) Commissioner Samuel A.A. Levine today announced the results of a citywide enforcement sweep of car rental businesses. Between May and July, DCWP conducted 62 inspections and issued 56 summonses for violations of the City’s Consumer Protection Law, marking the agency’s first comprehensive review of the industry in roughly a decade.

“New Yorkers and visitors renting a car should know exactly what they’ll pay before they drive off the lot,” said Mamdani. “Working people shouldn’t have to worry about hidden costs being tacked onto the price they were promised. This administration will hold businesses accountable when they try to profit from confusion.”

“Hidden fees and undisclosed policies are a tax on working people who are already stretched thin,” said Deputy Mayor for Economic Justice Julie Su. “DCWP’s enforcement sends a clear message that this administration will not let businesses surprise New Yorkers with costs they weren’t told about.”

Inspectors found that most businesses failed to post required price signs or disclose prices as required, and many lacked a posted refund policy. DCWP is continuing to review the inspection results and said it will pursue further enforcement against businesses that remain out of compliance.

“When you rent a car, you deserve to know the price and the policy up front,” said DCWP Commissioner Samuel A.A. Levine. “This sweep makes clear that businesses need to disclose their prices and policies or face consequences.”

What to know

Car rental agencies in New York City must:

• Honor all reservations within one-half hour of the reserved time at the reserved price, unless the consumer is told in advance that the reservation is not guaranteed.
• Post a sign explaining the Consumer Protection Law’s rule on rental car reservations, including how to file a complaint.
• Provide a car that seats as many passengers and meets the consumer’s needs if the reserved car is unavailable.
• Disclose prices to consumers, including the minimum rental price and any conditions that affect it.

New York City’s Consumer Protection Law prohibits unfair trade practices in the sale of consumer goods and services, including false advertising, phony sales and special offers with hidden conditions.

DCWP advises that NYC residents and visitors with a car rental complaint to file at nyc.gov/Consumers.

It's not just New York

Complaints about car rentals are common not only in New York but just about anywhere there's a car rental counter but by virtue of its size and its status as a tourist magnet, New York gets more than its share.

There's no single central database of complaints but the Consumer Federation of America’s 2024 survey of state and local consumer agencies found they handled more than 350,000 consumer complaints overall.

The most reportable complaint patterns tend to involve:

• Reservation or advertised-price disputes, including mandatory fees that emerge late in the transaction.
• Post-rental billing for damage, fuel, tolls, cleaning, or administrative charges.
• Insurance, collision-damage-waiver, and liability-coverage representations.
• Vehicle availability or substitution despite a confirmed booking.
• Deposit holds, delayed refunds, and collection or credit-reporting disputes tied to claimed damage.

For example, an earlier FTC case against Budget alleged misleading fuel-fee practices affecting consumers who returned cars with full tanks; the settlement barred misrepresentations about rental charges, fees, costs, and material terms.