Enacts the "guaranteed reservation protection for rental car customers act"; provides that a rental vehicle company shall not charge any authorized driver a rental rate higher than the rate quoted in such driver's reservation.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8522
SPONSOR: Santabarbara TITLE OF BILL:
An act to amend the general business law, in relation to enacting the
"guaranteed reservation protection for rental car customers act"
PURPOSE::
To ensure that rental car reservations made by consumers are honored at
the agreed-upon price, to prohibit deceptive overbooking practices, to
require public disclosure of rental policies, and to establish enforce-
ment mechanisms and penalties for violations.
SUMMARY OF PROVISIONS::
This bill enacts the following requirements for all rental car companies
operating in New York State:
Reservation Guarantee:
If a rental car reservation is confirmed, the company must honor the
reservation at the quoted price.
If the reserved vehicle is unavailable at the time of pickup, the compa-
ny must provide a vehicle of equal or greater value at no additional
charge.
If no suitable vehicle is available, the company must cover the consum-
er's reasonable transportation expenses to secure an alternative rental
or travel option.
Penalties for Violations:
Failure to honor a reservation without prior disclosure constitutes a
deceptive business practice under the General Business Law.
Violators 'are subject to civil penalties, enforcement action by the New
York State Attorney General, and potential private legal action by
affected consumers.
Public Posting Requirement:
Rental car companies must clearly disclose their reservation guarantee
policies on their websites and at all rental counters in New York State.
Disclosures must be written in clear, plain language understandable to
the average consumer.
JUSTIFICATION::
Consumers who reserve rental vehicles often base critical travel plans
on these confirmed bookings, trusting that their transportation needs
will be met upon arrival. Increasingly, travelers report situations
where companies fail to provide reserved vehicles, citing "high demand"
and offering alternative vehicles at inflated prices.
This unfair practice disrupts travel, imposes unexpected financial
burdens, and erodes consumer trust.
Currently, there is no comprehensive statewide law in New York to
protect consumers from these reservation failures. This bill fills that
gap by ensuring reservation reliability, imposing real consequences for
violations, and requiring transparency upfront.
Protecting consumers in this area will improve travel reliability, rein-
force fair business practices, and strengthen New York's commitment to
consumer rights.
LEGISLATIVE HISTORY::
New bill.
FISCAL IMPLICATIONS::
None to the state.
EFFECTIVE DATE::
This act shall take effect 180 days after becoming law.
STATE OF NEW YORK
________________________________________________________________________
8522
2025-2026 Regular Sessions
IN ASSEMBLY
May 20, 2025
___________
Introduced by M. of A. SANTABARBARA -- read once and referred to the
Committee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to enacting the
"guaranteed reservation protection for rental car customers act"
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "guaranteed reservation protection for rental car customers act".
3 § 2. Section 396-z of the general business law is amended by adding a
4 new subdivision 9-a to read as follows:
5 9-a. (a) A rental vehicle company shall not charge any authorized
6 driver a rental rate higher than the rate quoted in such driver's reser-
7 vation unless such additional charge is authorized by this section.
8 (b) If the vehicle reserved by an authorized driver is unavailable at
9 the time of such driver's reservation, the rental vehicle company shall
10 provide a vehicle of equal or greater value at no additional charge. If
11 the rental vehicle company is unable to provide such a vehicle, the
12 rental vehicle company shall reimburse the authorized driver for such
13 driver's reasonable transportation expenses to secure an alternative
14 rental vehicle or other travel option.
15 (c) Every rental vehicle company shall inform customers of the
16 requirements of this subdivision on its website and on posted signs
17 prominently and conspicuously displayed where they may be easily seen by
18 customers.
19 § 3. This act shall take effect on the ninetieth day after it shall
20 have become a law; provided that the amendments to section 396-z of the
21 general business law made by section two of this act shall survive the
22 expiration and reversion of such section as provided in section 4 of
23 chapter 109 of the laws of 2018, as amended.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11858-01-5
