EN Official Journal of the European Union CE 84/493

(2004/C 84 E/0571)

WRITTEN QUESTION E-2503/03

by Christopher Heaton-Harris (PPE-DE) to the Commission

(29 July 2003)

Subject: Car hire companies

I have received numerous letters from constituents complaining that when they have pre-booked an ‘all inclusive’ hire car, they then find they are liable to extra charges that dramatically increase the overall cost of the car hire.

Has the Commission received any such complaints about hire car pricing, in particular the transparency of pricing and the increasing use of fuel being sold by some hire companies at well above the market rate?

Has the Commission had any contact with car hire companies in the recent past? If so, what matters were discussed?

Answer given by Mr Byrne on behalf of the Commission

(12 September 2003)

A business practice that deceives consumers about the real costs of a service is incompatible with the spirit of Article 15 3 of the EC Treaty that stresses, among other things, the right to consumer information which has always been one of the main concerns for Union consumer protection. However, the problem of ‘all-inclusive’ hire cars has not, so far, been specifically brought to the Commission's attention.

At present, Council Directive 84/450/EEC of 10 September 1984 (1), as amended by Directive 97/55/EC of the Parliament and of the Council of 6 October 1997 (2) on misleading and comparative advertisement, makes it illegal to mislead consumers in relation to the price of a service (Article 3(b)). Moreover, price increases in contract terms can be unfair according to Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts (3). The indicative and non-exhaustive list in the Annex to the Directive expressly includes contract clauses providing for price increases without giving the consumer the corresponding right to cancel the contract if the final price is too high in relation to the price agreed (No 1 (1)).

Car hire companies have inquired whether Directive 97/7/EC of the Parliament and of the Council of 20 May 1997 on the protection of consumers in respect of distance contracts (4) is fully applicable to their business. Article 3(2), 2nd indent of the Directive exempts, among other things, contracts for transport from certain provisions of the Directive. However, no mention is made of car rental contracts. A case has just been filed (30 July 2003) in the European Court of Justice where it is asked whether car rental agreements are covered by the Directive [EasyCar (UK) Ltd, C-336/03]. That case is now pending.

More generally, the Commission has put great efforts into tackling unfair business practices. These efforts have most recently yielded the Proposal for a Directive concerning unfair business-to-consumer commercial practices in the internal market (the unfair commercial practice Directive) (5). This Directive, when adopted, will outlaw unfair commercial practices that are, for instance, misleading. Article 6(1)(c) of the proposed Directive expressly names as a misleading practice consumer deception in relation to price calculation.

(1) OJ L 250, 19.9.1984.

(2) OJ L 290, 23.10.1997.

(3) OJ L 95, 21.4.1993.

(4) OJ L 144, 4.6.1997.

(5) COM(2003) 356 final.