Class Action Car Rentals

In July 2014, a federal judge approved a settlement to a class-action lawsuit filed against Hotwire, Inc. Specifically, the complaint, which was originally filed in 2012, alleged that Hotwire misrepresents the price of its services. According to the complaint, consumers who used to reserve rental cars were required to pay undisclosed fees – such as insurance fees and taxes – which significantly increased Hotwire’s estimated cost of the rental. According to the settlement terms, class members will be compensated at least $10 per day of the car rental. Additionally, Hotwire, Inc. is required to more clearly disclose that consumers may have to pay foreign taxes and insurances when they pick up a rental car. (Shahar et. al v. Hotwire, Inc. et. al, Case No. 12-cv-06027, N.D. CA.).

For more information about other travel-related class-action lawsuits and’s coverage of the issue, click here.


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