Facts

The San Francisco City Attorney, on behalf of the People of the State of California, sued The Hertz Corp. and American Traffic Solutions Inc. in relation to tolls charged to rental car customers who crossed the Golden Gate Bridge.

PLAINTIFF'S CONTENTIONS: Plaintiff alleged Hertz and ATS charged rental car customers toll service fees for every day they rented the car, even on days the service was not used. Specifically, plaintiff claimed Hertz and ATS fraudulently induced customers who drive across the Golden Gate Bridge to purchase PlatePass toll service at an exorbitant price which customers have no choice but to pay and are not sufficiently notified about. The PlatePass service, plaintiffs alleged, does not provide the benefit of faster crossing defendants advertised because every lane is the same and accessible to all drivers and customers cannot pay their tolls in cash, nor are they informed of free payment options. Plaintiff also claimed Hertz unlawfully provides customer-billing information to ATS. Plaintiff contended these practices violated the Rental Passenger Vehicle Transactions Act, which prohibits rental car companies from requiring customers to purchase optional services or inducing customers to purchase such services by unfair, deceptive, or coercive conduct.

Plaintiff also contended these practices violated the Unfair Competition Law, the False Advertising Law, the Consumer Legal Remedies Act, and the Restore Online Shoppers' Confidence Act.

DEFENDANTS' CONTENTIONS: Defendants denied the allegations and claimed it complied with the RPVTA.

Result

Hertz and ATS agreed to pay $3.65 million to the City of San Francisco and agreed to provide customers at Bay Area locations with a rental record including the terms of Golden Gate Bridge's one-time payment option. Defendants also agreed to give customers a brochure outlining ways to avoid rental car toll service fees and to include the material terms of the one-time payment option. Defendants also agreed to refrain from charging unlawful or unconscionable fees for PlatePass and provide training to Hertz employees regarding the one-time payment option.