VROOM Act

Bill: 118-hr-3695
Sponsor: full_name: Rep. Garcia, Robert [D-CA-42]
Introduced: 2023-05-25
Policy area: Commerce
Subjects: Business ethics

Civil actions and liability

Consumer affairs

Fraud offenses and financial crimes

Lease and rental services

Motor vehicles
Latest action: action_date: 2023-05-26
text: Referred to the Subcommittee on Innovation, Data, and Commerce.

Summaries:

tv_txt: I 118th CONGRESS 1st Session H. R. 3695 IN THE HOUSE OF REPRESENTATIVES May 25, 2023 Mr. Robert Garcia of California (for himself, Ms. Norton , Mr. Trone , Mr. Cleaver , Ms. Budzinski , and Mr. Johnson of Georgia ) introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To protect consumers from overbooking by rental car companies, and for other purposes.

1. Short title This Act may be cited as the Vehicle Rental Order Obligation Mandate Act or the VROOM Act . 2. Protection from overbooking by rental car companies (a) Protection from overbooking A rental car company that fails to honor a reservation of a consumer shall offer the consumer, and allow the consumer to choose from between, each of the following: (1) If such a vehicle is available, fulfillment of the reservation, at no additional cost to the consumer, through a covered rental vehicle of a class that is more expensive to rent than the vehicle initially reserved. (2) If such a vehicle is available, both— (A) fulfillment of the reservation through a covered rental vehicle of a class that is less expensive to rent than the vehicle initially reserved; and (B) an amount equal to the difference in price between— (i) the reservation as initially reserved; and (ii) the reservation as fulfilled pursuant to subparagraph (A), as determined by using the lesser of— (I) the lowest available price of such reservation as fulfilled had such reservation as fulfilled been made on the date on which the initial reservation described in clause (i) was made; or (II) the lowest available price of such reservation as fulfilled had such reservation as fulfilled been made on the date of fulfillment. (3) An amount equal to 200 percent of the total rental price of the reservation of the consumer, except that in no case may the amount exceed $500 per day of the reservation. (b) Regulations The Commission may promulgate, under section 553 of title 5, United States Code, regulations to implement this section. (c) Enforcement by Commission (1) Unfair or deceptive acts or practices A violation of this section or a regulation promulgated under this section shall be treated as a violation of a regulation under section 18(a)(1)(B) of the Federal Trade Commission Act ( 15 U.S.C. 57a(a)(1)(B) ) regarding unfair or deceptive acts or practices. (2) Powers of Commission The Commission shall enforce this section and the regulations promulgated under this section in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act ( 15 U.S.C. 41 et seq. ) were incorporated into and made a part of this Act. Any person who violates this section or a regulation promulgated under this section shall be subject to the penalties and entitled to the privileges and immunities provided in the Federal Trade Commission Act. (3) Effect on other laws Nothing in this Act may be construed to limit the authority of the Commission under any other provision of law. (d) Actions by States (1) In general In any case in which the attorney general of a State, or an official or agency of a State, has reason to believe that an interest of the residents of such State has been or is threatened or adversely affected by an act or practice in violation of this section or a regulation promulgated under this section, the State, as parens patriae, may bring a civil action on behalf of the residents of the State in an appropriate district court of the United States to— (A) enjoin such act or practice; (B) enforce compliance with such section or regulation; (C) obtain damages, restitution, or other compensation on behalf of residents of the State; or (D) obtain such other legal and equitable relief as the court may consider to be appropriate. (2) Notice Before filing an action under this subsection, the attorney general, official, or agency of the State involved shall provide to the Commission a written notice of such action and a copy of the complaint for such action. If the attorney general, official, or agency determines that it is not feasible to provide the notice described in this paragraph before the filing of the action, the attorney general, official, or agency shall provide written notice of the action and a copy of the complaint to the Commission immediately upon the filing of the action. (3) Authority of Commission (A) In general On receiving notice under paragraph (2) of an action under this subsection, the Commission shall have the right— (i) to intervene in the action; (ii) upon so intervening, to be heard on all matters arising therein; and (iii) to file petitions for appeal. (B) Limitation on State action while Federal action is pending If the Commission or the Attorney General of the United States has instituted a civil action for violation of this section or a regulation promulgated under this section (referred to in this subparagraph as the Federal action ), no State attorney general, official, or agency may bring an action under this subsection during the pendency of the Federal action against any defendant named in the complaint in the Federal action for any violation of such section or regulation alleged in such complaint. (4) Rule of construction For purposes of bringing a civil action under this subsection, nothing in this Act shall be construed to prevent an attorney general, official, or agency of a State from exercising the powers conferred on the attorney general, official, or agency by the laws of such State to conduct investigations, administer oaths and affirmations, or compel the attendance of witnesses or the production of documentary and other evidence. (e) Private right of action A person injured by an act or practice in violation of this section or a regulation promulgated under this section may bring in an appropriate district court of the United States— (1) an action to enjoin the violation; (2) an action to recover damages for actual monetary loss from the violation, or to receive up to $1500 in damages for each such violation, whichever is greater; or (3) both such actions. (f) Definitions In this section: (1) Commission The term Commission means the Federal Trade Commission. (2) Covered rental vehicle The term covered rental vehicle means a motor vehicle that— (A) has a gross vehicle weight rating of 10,000 pounds or less; (B) is rented to a consumer for a term of less than 4 months; (C) is rented without a driver provided as part of the rental; and (D) is part of a motor vehicle fleet of 35 or more motor vehicles that are used for rental purposes by a rental company. (3) Fails to honor a reservation The term fails to honor a reservation means, with respect to a rental car company, that the company does not provide a consumer, who has a confirmed reservation for a covered rental vehicle (without regard to whether the reservation was paid for in advance), a vehicle of the class reserved by the consumer at the time for fulfillment associated with the reservation. (4) Motor vehicle The term motor vehicle means a vehicle driven or drawn by mechanical power and manufactured primarily for use on public streets, roads, and highways, but does not include a vehicle operated only on a rail line. (5) Rental car company The term rental car company means a person who— (A) is engaged in the business of renting covered rental vehicles; and (B) uses for rental purposes a motor vehicle fleet of 35 or more covered rental vehicles, on average, during the calendar year.