[Federal Register Volume 72, Number 230 (Friday, November 30, 2007)]
[Notices]
[Pages 67726-67727]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-23293]


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FEDERAL TRADE COMMISSION

[File No. 062 3042]


Budget Rent-A-Car System, Inc.; Analysis of Proposed Consent 
Order to Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices or unfair methods of competition. The attached Analysis to 
Aid Public Comment describes both the allegations in the draft 
complaint and the terms of the consent order--embodied in the consent 
agreement--that would settle these allegations.

DATES: Comments must be received on or before December 20, 2007.

ADDRESSES: Interested parties are invited to submit written comments. 
Comments should refer to ``Budget Rent-A-Car System, File No. 062 
3042,'' to facilitate the organization of comments. A comment filed in 
paper form should include this reference both in the text and on the 
envelope, and should be mailed or delivered to the following address: 
Federal Trade Commission/Office of the Secretary, Room 135-H, 600 
Pennsylvania Avenue, N.W., Washington, D.C. 20580. Comments containing 
confidential material must be filed in paper form, must be clearly 
labeled ``Confidential,'' and must comply with Commission Rule 4.9(c). 
16 CFR 4.9(c) (2005).\1\ The FTC is requesting that any comment filed 
in paper form be sent by courier or overnight service, if possible, 
because U.S. postal mail in the Washington area and at the Commission 
is subject to delay due to heightened security precautions. Comments 
that do not contain any nonpublic information may instead be filed in 
electronic form as part of or as an attachment to email messages 
directed to the following email box: [email protected].
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    \1\ The comment must be accompanied by an explicit request for 
confidential treatment, including the factual and legal basis for 
the request, and must identify the specific portions of the comment 
to be withheld from the public record. The request will be granted 
or denied by the Commission's General Counsel, consistent with 
applicable law and the public interest. See Commission Rule 4.9(c), 
16 CFR 4.9(c).
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    The FTC Act and other laws the Commission administers permit the 
collection of public comments to consider and use in this proceeding as 
appropriate. All timely and responsive public comments, whether filed 
in paper or electronic form, will be considered by the Commission, and 
will be available to the public on the FTC website, to the extent 
practicable, at www.ftc.gov. As a matter of discretion, the FTC makes 
every effort to remove home contact information for individuals from 
the public comments it receives before placing those comments on the 
FTC website. More information, including routine uses permitted by the 
Privacy Act, may be found in the FTC's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

FOR FURTHER INFORMATION CONTACT: Lisa Rosenthal or Sarah Schroeder, FTC 
Western Region, San Francisco, 600 Pennsylvania Avenue, NW, Washington, 
D.C. 20580, (415) 848-5100.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), and Sec.  2.34 of 
the Commission Rules of Practice, 16 CFR 2.34, notice is hereby given 
that the above-captioned consent agreement containing a consent order 
to cease and desist, having been filed with and accepted, subject to 
final approval, by the Commission, has been placed on the public record 
for a period of thirty (30) days. The following Analysis to Aid Public 
Comment describes the terms of the consent agreement, and the 
allegations in the complaint. An electronic copy of the full text of 
the consent agreement package can be obtained from the FTC Home Page 
(for November 20, 2007), on the World Wide Web, at http://www.ftc.gov/os/2007/11/index.htm. A paper copy can be obtained from the FTC Public 
Reference Room, Room 130-H, 600 Pennsylvania Avenue, NW, Washington, 
D.C. 20580, either in person or by calling (202) 326-2222.
    Public comments are invited, and may be filed with the Commission 
in either paper or electronic form. All comments should be filed as 
prescribed in the ADDRESSES section above, and must be received on or 
before the date specified in the DATES section.

Analysis of Agreement Containing Consent Order to Aid Public Comment

    The Federal Trade Commission has accepted an agreement to a 
proposed consent order with Budget Rent-A-Car System, Inc. 
(``Budget''), one of the nation's largest rental car agencies.
    The proposed consent order has been placed on the public record for 
thirty (30) days for reception of comments by interested persons. 
Comments received during this period will become part of the public 
record. After thirty (30) days, the Commission will again review the 
agreement and the comments received and will decide whether it should 
withdraw from the agreement or make final the agreement's proposed 
order.
    This matter concerns deceptive practices by Budget with respect to 
an automatic, flat ``EZ Fuel'' fee it charges to renters who drive 
fewer than 75 miles, regardless of whether they return their rental 
with a full gas tank, unless they present a receipt. Budget has failed 
to adequately disclose the EZ Fuel fee or how renters can have the fee 
reversed.
    The complaint alleges that Budget engaged in deceptive practices 
relating to its EZ-Fuel program. The complaint alleges that Budget has 
falsely represented that, if consumers return their rental vehicle with 
a full gas tank, they will not have to pay any fuel-related charge, 
fee, or cost. In numerous instances, however, consumers who drive their 
vehicle fewer than 75 miles

[[Page 67727]]

will have to pay the EZ Fuel fee, regardless of whether they return the 
vehicle with a full gas tank, unless they present a gas receipt.
    The complaint further alleges that Budget failed to disclose and 
failed to disclose adequately that consumers who drive their rental 
vehicle fewer than 75 miles and refuel can have the EZ Fuel fee 
reversed only if they present a fuel receipt. In addition, Budget 
failed to disclose that consumers without corporate accounts would have 
to present their fuel receipt inside at the rental counter after 
returning their rental vehicle and checking out on the return lot. 
These facts would be material to consumers in their rental transaction. 
The failure to disclose these facts, in light of the representations 
made, was a deceptive practice.
    The proposed order contains provisions designed to prevent Budget 
from engaging in similar acts and practices in the future. Part I 
prohibits Budget from misrepresenting (A) that renters who return their 
vehicle with a full tank of gas will not incur any fuel-related 
charges; (B) any fuel-related charge, fee, cost, or requirement; or, 
(C) any charge, fee, or cost, or term or condition, relating to the 
rental of any vehicle.'' Part II of the proposed order requires that 
Budget disclose, clearly and conspicuously, at the time of rental 
transaction: (A) any fuel related charges, fee, or costs; (B) any 
material requirements related to the fuel-related charge; and (C) the 
manner, if any, in which the renter can avoid such fuel-related 
charges. Finally, Part III of the proposed order prohibits Budget from 
making any representation about the benefits, costs, or parameters of 
any fuel-related option unless it discloses clearly and conspicuously, 
and in close proximity to the representation, any material terms or 
conditions relating to that fuel option. These conduct provisions 
prohibit the deceptive practices alleged in the complaint, but do not 
prohibit Budget from imposing fuel-related charges, so long as such 
charges are disclosed as required by the proposed order.
    Parts IV through VII of the proposed order are reporting and 
compliance provisions. Part IV requires Budget to retain documents 
relating to its compliance with the order. Part V requires 
dissemination of the order now and in the future to persons with 
responsibilities relating to the subject matter of the order. Part VI 
ensures notification to the FTC of changes in corporate status. Part 
VII mandates that Budget submit compliance reports to the FTC. Part 
VIII is a provision ``sunsetting'' the order after twenty (20) years, 
with certain exceptions.
    The purpose of this analysis is to facilitate public comment on the 
proposed order, and it is not intended to modify the terms of the 
proposed order in any way.
    By direction of the Commission.

Donald S. Clark,
Secretary.
[FR Doc. E7-23293 Filed 11-29-07: 8:45 am]
BILLING CODE 6750-01-S