Car hire comparison websites forced to show hidden charges upfront in watchdog crackdown
The Competition and Markets Authority has spent the last year investigating car hire sites amid fears that prices being shown weren't accurate
THREE car hire websites will be forced to show the full upfront cost to customers following action from the competition watchdog.
For the past year, the Competition and Markets Authority (CMA) has been looking at the car hire industry amid fears many firms were advertising low prices online only to slap additional fees and charges on before the customer reached the check out.
And now the CMA has taken enforcement action against online travel agents P&P Associates, and two price comparison sites - Affordable Car Hire and Flexiblecarhire.com - forcing them to include all compulsory charges in their initial upfront quote.
This means costs including fuel surcharges, young driver fees and out-of-hours pick up charges will be included in quotes if they apply.
The CMA said all three businesses co-operated fully with their investigation.
The regulator added that a year on from the start of its investigation, 30 leading car hire websites now carry clearer and more transparent pricing for over 1,300 car companies, giving Brits a better picture of how much they'll pay.
Michael Grenfell, CMA executive director for enforcement, said: "It is important people know what they’re signing up to online when hiring a car.
"Prices must be transparent and include all compulsory costs so that people can find the deal that’s best for them.
"The CMA’s work over the past year has vastly improved the sector and brought the majority of sites offering car hire in line with consumer protection law.
"UK customers can now be more confident that what they see is what they will pay."
Today, the CMA has also announced it will be taking action against firms based outside the UK for the first time.
It said it had received "extensive complaints" from Brits picking up cars at the airport, including hidden charges for fuel, surprisingly high excess amounts and hidden insurance costs.
Mr Grenfell added: "This move sends a clear message: just because a business is not on UK soil doesn’t mean the law doesn’t apply when it sells in the UK.
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"British consumers have a right to protection under consumer law and the CMA will work to ensure they receive it."
Earlier this month, it was revealed that major car hire companies are overcharging Brits by up to £1,000 for repairs on their cars.
Consumer group Which? revealed that major companies including Europcar, Budget, Hertz and Goldcar were all found quoting higher prices for fixes than regular garages.
The Sun has asked all three firms about their pricing.
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