SENATE BILL REPORT

SB 6036

BYSenator McCaslin

Regulating businesses that provide rental motor vehicles to the public.

Senate Committee on Financial Institutions & Insurance

Senate Hearing Date(s):February 28, 1989

Majority Report:  Do pass.

      Signed by Senators von Reichbauer, Chairman; Johnson, Vice Chairman; Fleming, McCaslin, McMullen, Moore, Sellar, Smitherman.

Senate Staff:Benson Porter (786-7470)

                  February 28, 1989

AS REPORTED BY COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE, FEBRUARY 28, 1989

BACKGROUND:

Under current law, a person disseminating false or deceptive written advertising may be subject to a fine of not more than $5,000 or imprisonment of not more than 90 days, or both.  Certain provisions allowing the prevention and discontinuance of such false and deceptive advertising also exist.

No state law specifically concerns the use of misleading or deceptive statements, both written and oral, by rental car companies and employees thereof.

SUMMARY:

If a rental car company, employee, or representative of the rental company makes any material statement or omission concerning the rental of a vehicle that has a tendency to mislead or deceive a customer, the rental car company violates the Consumer Protection Act.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: No one