STA TE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS ASSURANCE OF VOLUNTARY COMPLIANCE

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1 STA TE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS IN THE INVESTIGATION OF: Case No. L FOX RENT A CAR, INC., Respondent ASSURANCE OF VOLUNTARY COMPLIANCE 1. PURSUANT to the provisions of Chapter 501, Part II of the Florida Statutes, Florida's Deceptive and Unfair Trade Practices Act, the Office Of The Attorney General, Department Of Legal Affairs (hereinafter referred to as the "Department"), caused an investigation to be made into certain acts and practices of Fox Rent A Car, Inc., (hereinafter, "Respondent" or "Fox"). Respondent has fully cooperated with the Department's investigation and maintains that its business practices fully comply with all local, state and federal laws and regulations. 2. Respondent Fox Rent A Car, Inc., is a California corporation with its mailing address and principal place of business registered at 5500 West Century Blvd., Los Angeles, CA Fox Rent A Car, Inc., owns and does business under foxrentacar.com. 3. Respondent is prepared to enter into this Assurance of Voluntary Compliance (hereafter referred to as the "A VC") without an admission that Respondent violated Florida's Deceptive and Unfair Trade Practices Act or any other law and solely for the purpose of resolution of this matter with the Department. 1 Initials: Iv\()

2 4. Pursuant to Section (6), Florida Statutes, the Department agrees to accept this A VC in termination of its investigation as to Respondent and releases Respondent solely as to the acts and practices that were the subject of the investigation. STIPULATED DEFINITIONS & FACTS 5. The terms used herein shall have the following meanings: a. "Clear and Conspicuous" (including "Clearly and Conspicuously") means that a statement, representation, claim disclosure or term being conveyed is presented in a way that a consumer will notice and understand it. Subject to applicable law, the following, without limitations, shall be considered in determining whether a statement, claim, term, or representation is clear and conspicuous: 1. Whether it is of sufficient prominence m terms of font, size, placement, color, contrast, duration of appearance, sound and speed, as compared with accompanying statements, claims, terms, or representations so that it is readily noticeable and understandable, and likely to be read by the person to whom it is directed; and if written or conveyed electronically, that it is not buried on the back, bottom or in the middle of a wall of text, or in a hyperlink, or in unrelated information or placed on the page where a person would not think it important to read; 11. Whether it is unavoidable; 2 Initials: ---

3 111. Whether it is presented to the person(s) to whom it is directed in a coherent and meaningful sequence with respect to other terms, representations, claims, or statements being conveyed; iv. Whether it is near to or in close proximity to the statement, representation, claim, or term it clarifies, modifies, explains, or to which it otherwise relates (representations and disclosures that are accessed or displayed through hyperlinks, interstitials, pop-ups, or similar means are not in close proximity); v. Whether a consumer must scroll up, down, sideways, or otherwise adjust their browser or device window in any way in order to view it; v1. Whether it contradicts, or renders ambiguous or confusing, any other information with which it is presented; v11. Whether, if it is oral, it is at an understandable pace in the same tone and volume as the sales offer; v111. Whether, it appears for a duration sufficient to allow listeners or viewers to have a reasonable opportunity to notice, read, or otherwise understand; ix. Whether the language and terms used are commonly understood by the consumer in the context in which they are used; x. Whether it is presented in such a way as to be free of distractions, including, but not limited to sound, graphics, text, or other offers that compete for the attention of the consumer; 3 Initials: JI" U

4 x1. Whether, in advertising on the Internet, it is made on the same page as any other term, statement, claim or representation that it modifies, and not in a hyperlink; x11. Whether the disclosure, term, condition or representation appears on the Internet on a co-registration order path in which numerous offers for various goods and services are represented to be free, and the consumer is required to accept a certain number of offers. 6. The Department and Respondent hereby agree and stipulate to the following: a. Respondent is a rental car company that offers its customers the option to contract for additional insurance, waivers, and coverage services above and beyond the base car rental fee. b. Respondent owns and operates foxrentacar.com and is responsible for the advertised terms and conditions of its vehicle rental agreements issued at the time of car rental as well as the oral representations made by its employees at Fox Rent A Car company store locations throughout Florida. 7. The Department investigated allegations that Respondent committed unfair or deceptive acts toward consumers in the State of Florida and elsewhere in connection with renting cars to consumers and selling additional insurance, waivers, and charging consumers other fees above and beyond the base rental car rate. Some consumers alleged that Respondent failed to clearly and conspicuously disclose all material terms of the vehicle rental transaction before obtaining the consumer's billing information, failed to obtain the consumer's express informed consent before charging the consumer, and failed to honor requests for refunds. Specifically, 4 Initials:

5 some Consumers alleged that Respondent failed to adequately disclose the additional cost of added insurance, waiver and coverage services at the time they rented their vehicle. 8. This A VC is based upon the stipulated facts set forth herein. The Department shall not be estopped from taking further action in this matter should the facts described herein be shown to be incorrect in any material way or should this AVC not be complied with in full by Respondent. The parties agree that this A VC has been entered into based on the truthfulness of the information provided by Respondent. TERMS 9. Respondent, including its representatives, agents, employees, successors, assigns, independent contractors or any other person who acts under, by, through, or on behalf of Respondent, directly or indirectly, or through any corporate or other device shall: a. Comply with the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes; b. Accurately explain, if asked, that loss of use may be an available measure of damages under certain circumstances if the rental vehicle is damaged and that damage is not covered by insurance; c. Not exert unreasonable pressure on consumers to purchase additional insurance or accept other optional fees in addition to the base rate of the rental car; d. Only ask consumers in a reasonable manner, no more than twice, if they want to purchase additional insurance or accept other optional fees in addition to the base rate of the rental car; e. Not tell consumers that Fox's additional insurance is required by Florida law; f. Not tell consumers that the vehicle will not be rented to the consumer unless the consumer agrees to pay for Fox's additional insurance; g. Continue providing training programs to Fox's employees including but not limited to providing training on clear and conspicuous disclosures; h. Clearly and Conspicuously disclose all additional, optional charges including tolls, GPS fees, car seat fees, underage driver fees, additional driver fees, upgrade fees and any other additional charges in addition to the base rate of the car prior to the consumer picking up the rental car; i. Exercise commercially reasonable efforts to ensure vehicles rented to consumers are safe and fit for consumer use; J. Clearly and Conspicuously disclose both in writing and in oral representations made by sales representatives, if any, the difference between damage waiver protection and insurance coverage; 5 Initials:

6 k. Ensure sales representatives Clearly and Conspicuously disclose, orally or though the rental agreement, all charges at the time of rental to consumers; at the point the consumer picks up the rental car ensure sales representative oral representations, if any, are consistent with written disclosures; l. Subject to agreed upon changes to a consumer's rental agreement, or other applicable circumstances such as a consumer's breach of the rental agreement, ensure Fox does not bill consumers more than what is contractually owed pursuant to the rental contract and ensure that consumers are charged the rate agreed upon by Fox and the consumer; m. Ensure rates quoted to consumers by sales representatives are true and correct and honored by Fox; n. Ensure that all representations on Respondent's website or in any other marketing or promotional materials offered by Respondent provide text that Clearly and Conspicuously discloses all material terms of the vehicle rental transaction before charging the consumers; o. Ensure no misrepresentations regarding additional services/coverage being required by law are made; p. If a refund is determined by Fox to be due, exercise commercially reasonable efforts to provide refunds in a timely manner, no more than thirty (30) calendar days, to any consumer from the date the consumer requests a refund and Clearly and Conspicuously identify the procedure and customer support contact information for consumers to request and receive a refund; Clearly and Conspicuously disclose Respondent's refund policy; q. Maintain a customer support telephone number and/or mail and address for consumers to file a complaint, ensure all consumer complaints are responded to within five (5) business days, and ensure that any independent contractors utilized comply with this provision; r. Continue providing training programs to all relevant Fox employees including, but not limited to, providing training on clear and conspicuous disclosures to consumers and prohibiting misrepresentations to consumers consistent with the terms of this AVC. Ensure all relevant Fox employees attend these training programs within the first two months of their employment, maintain records of employee attendance, ensure that employees receive refresher training on an annual basis, and maintain records of the annual refresher training; and s. Continue providing training programs to all relevant Fox employees regarding customer service and internal handling of consumer complaints including the issuance of refunds consistent with the terms of this A VC. Ensure all relevant Fox employees attend these training programs within the first two months of their employment, maintain records of employee attendance, ensure that employees receive refresher training on an annual basis, and maintain records of the annual refresher training. BUSINESS RECORDS 10. Respondent shall preserve and retain all relevant business and financial records relating to the acts and practices at issue in this A VC and other information reasonably sufficient 6 Initial s : ~

7 to establish compliance with the provisions of this A VC for two (2) years from the effective date of this A VC, and shall provide reasonable access to such documents and information to the Department upon request. CUSTOMER RECORDS 11. Any personal or financial information of consumers, in the custody, control or possession of Respondent shall be securely stored in such a commercially reasonable manner as to reasonably protect against inadvertent disclosure of consumer information. Respondent, including any representative, agents, employees, successors, and assigns, shall not, directly or indirectly, market, sell, share or otherwise disclose the name, contact information, or financial information of any consumer or customer in the care, custody or control of Respondent except as allowed by State or Federal law. WRITTEN NOTICE 12. Respondent shall make the terms and conditions of this AVC known to any managers, members, officers, directors, employees, agents, independent contractors, telemarketers, or any other persons that are substantially affected by this AVC and are involved in the applicable activities of Respondent or anyone else acting for or on behalf of Respondent who are involved in the applicable activities by providing written notice of the terms of this AVC. The obligations imposed by this A VC are continuing in nature and shall apply to Respondent's successors and assigns as well as any and all new officers, employees, agents, representatives or any other persons who become engaged in the applicable activities of Respondent or any new business entities created by Respondent. 7 Initials:./IVG

8 13. Respondent shall not affect any change in the form of doing business or the organizational identity of any of the existing business entities or create any new business entities as a method of avoiding the obligations and terms and conditions set forth in this AVC. 14. For a period of two (2) years from the Effective Date of this A VC, the Department shall forward any and all Fox complaints it receives or becomes aware of to the following addresses: mrupp@foxrentacar.com and mcollier@foxrentacar.com. Fox shall exercise good faith to resolve each such complaint in a timely and reasonable manner. CONSUMER RESTITUTION 14. Consumer Restitution. A The consumers listed in the consumer restitution spreadsheet compiled by the Parties and attached as Exhibit A have filed complaints relating directly or indirectly to Respondent with the Department, the Better Business Bureau, or another entity (the "prior complaints" or "prior complainants"). The Department provided Respondent with the consumer complaints identified in Exhibit A Respondent reviewed the complaints and Respondent's responses are included in Exhibit A under the columns entitled "Fox Rent A Car, Inc. 's Response" and "Amount Refunded Prior to AVC." Respondent submitted an affidavit, attached as Exhibit B, attesting to the responses included in Exhibit A including refunds provided to consumers prior to the execution of this AVC totaling $9, (nine thousand four hundred seven dollars and ninety seven cents) and refunds to be provided to all remaining consumers who filed a complaint totaling $6, (six thousand five hundred ninety six dollars and eight cents) to be provided to the Department simultaneously upon execution of this A VC. The Department shall not be stopped from taking further action in this matter should the responses provided by Respondent herein be shown to be inaccurate in any material way. 8 Initials:./{"' J

9 B. The parties agree that the Respondent shall contribute the sum of $6, (six thousand five hundred ninety six dollars and eight cents)("restitution Funds") simultaneously upon execution of this A VC which shall be used to pay the remaining claims of individuals who have filed complaints against Respondent through entities including, but not limited to, the Department and the Better Business Bureau. The manner in which the funds are to be distributed shall be within the sole discretion and/or reasonable judgment of the Department. C. In addition, Respondent is directed to pay to the Department the sum of $1, (one thousand dollars)("escrow Funds") simultaneously upon execution of this AVC to satisfy future consumer restitution for a period of sixty ( 60) days from the date of execution of this AVC. In the event actual restitution for future complainants exceeds the amount of the Escrow Funds, then the Escrow Funds will be distributed pro-rata to the complainants who have submitted complaints to the Department within the sixty (60) day period. However, no individual consumer who submits a complaint within the sixty (60) day period will receive more than the amount of damages actually sustained. Upon the conclusion of this sixty (60) day period of time, any remaining monies shall revert back to the Department of Legal Affairs Revolving Trust Fund and shall be used to defray the cost of attorneys' fees and costs and restitution distribution. D. The Restitution and Escrow Funds identified above shall be made by certified or cashier's check, payable to the Department of Legal Affairs Escrow Fund, and,,. shall be sent to the attention of Assistant Attorney General Ryann Flack, Office of the Attorney General, Consumer Protection Division, 444 Brickell Avenue, 6th Floor, Miami, FL Upon receipt, the checks shall be deposited into the Department of Legal Affairs Escrow Fund, in accordance with Section (1), Florida Statutes. If any restitution monies remain after the distribution of restitution the Attorney General's office will deposit the remaining monies into 9 Initials: Jr J

10 the Department of Legal Affairs Revolving Trust Fund and same shall be used to defray the cost ofrestitution distribution and any attorneys' fees and costs incurred in enforcing this Judgment, or as fees and costs associated with ongoing and future enforcement initiatives pursuant to Chapter 501, Part II, Florida Statutes. E. Respondent shall continue to respond and in good faith attempt to resolve each consumer complaint received from and after the Effective Date in a lawful manner including, but not limited to, resolution via refund, if applicable, and adding consumer to Respondent's Do-Not-Contact list, if applicable. Respondent shall use commercially reasonable efforts to commence the consumer complaint resolution process within five (5) business days of Respondent's receipt of a legitimate or bona fide customer complaint. ATTORNEYS' FEES AND COSTS 15. Respondent shall contribute seventeen thousand five hundred dollars ($17,500.00) to the Department pursuant to Section , Florida Statutes, in payment of attorneys' fees, costs and investigative fees regarding this investigation, payable by cashier's check or other certified funds payable to Department of Legal Affairs Revolving Trust Fund. The payments due hereunder, along with the original A VC bearing the notarized signature of Respondent shall be delivered to the attention of Assistant Attorney General Ryann Flack, Office of Attorney General, Consumer Protection Division, 444 Brickell A venue, 6th Floor, Miami, FL The original A VC bearing the notarized signatures of Respondent and the payment(s) due hereunder will be delivered to the attention of Assistant Attorney General Ryann Flack, Office of Attorney General, Consumer Protection Division, 444 Brickell A venue, 6 th Floor, Miami, FL Initials: ~ U

11 CIVIL PENAL TIES 17. Subject to Respondent's full, complete and timely compliance with the terms of this A VC, the Department is waiving pursuant to this settlement and in consideration of the Respondent's performance hereunder the civil penalties that would otherwise be due for the acts and practices at issue under Sections or , Florida Statutes, of up to $15, per violation in consideration of the parties' entry into this AVC. FUTURE VIOLATIONS 18. It is hereby agreed by the parties that any failure to comply with the terms and conditions of this A VC by Respondent is by statute prima facie evidence of a violation of Chapter 50 I, Part II, Florida Statutes, and will subject Respondent to any and all civil penalties and sanctions authorized by law, including attorneys' fees and costs. In the event that a court of competent jurisdiction makes a determination that a violation of any condition of this A VC has occurred, then Respondent shall be liable for a judgment of up to $10, per consumer transaction as authorized by Florida Statutes Section , or up to $15, per consumer transaction as authorized by Florida Statutes Section , as well as attorneys' fees and costs and any other legal or equitable relief as the court may determine appropriate. EFFECTIVE DATE 19. The effective date of this AVC shall be the date of its execution by all parties. Acceptance by the Department shall be established by the signature of the Director, Consumer Protection Division, Department of Legal Affairs, Office of the Attorney General. This A VC shall become effective on the "Effective Date," which shall be the date on which the Director accepts and executes this A VC. The receipt by the Department of any monies pursuant to the 11 Initials: J/lU

12 AVC does not constitute acceptance by the Department, and any monies received shall be returned to Respondent if this AVC is not accepted and fully executed by the Department. MISCELLANEOUS 20. It is further agreed that facsimile and/or electronically scanned (PDF) copies of signatures and notary seals may be accepted as original for the purposes of establishing the existence of this agreement, and this A VC may be executed in counterparts, the compilation of which shall constitute the full and final agreement. 21. Notice to any of the parties to this A VC as may be required shall made by certified mail at the addresses set forth below unless any party notifies the other parties in writing of another address to which notices should be provided. To Respondent: Fox Rent A Car, Inc. General Counsel 5500 West Century Blvd. Los Angeles, CA mrupp@foxrentacar.com To the Department: Ryann Flack, Assistant Attorney General Consumer Protection Division Office of the Attorney General 444 Brickell A venue, 6 1 h Floor Miami, Florida Nothing in this A VC is to be construed as a waiver of any private rights of any person or release of any private rights, causes of action, or remedies of any person against Respondent or any other person or entity. 12 Initials: /{VJ

13 23. It is a condition of each of the Department's obligations under this AVC that Respondent has fully and timely performed all of Respondent's obligations previously due under this AVC. 24. This AVC is the final, complete, and exclusive statement of the parties' agreement on the matters contained in this A VC, and it supersedes all previous negotiations and agreements. Other than any representation expressly stated in this A VC, the parties have not made any representations or warranties to each other, and neither party's decision to enter into this AVC is based upon any statements by the other party outside of those in this AVC. 25. It is further agreed that the parties jointly participated in the negotiation of the terms of this A VC. No provision of this A VC shall be construed for or against any party on the grounds that one party had more control over establishing the terms of this AVC than another. 26. By my signature, I hereby affirm that I have authority to execute this AVC on behalf of the party indicated and, to the extent I am acting in a representative capacity, I am acting within the scope of my authority as corporate representative, as well as in my individual capacity, and that by my signature I am binding myself and the businesses/parties indicated to the terms and conditions of this AVC. SIGNATURES ON SEPARATE PAGE(S) 13 Initials: /(r cj

14 By: M He J~ ~L. ~ ~ Respondent, Fox Rent A Car, Inc. STATE OF CALIFORNIA COUNTY OF L- A ) ) ss: ) BEFORE ME, an officer duly authorized to take acknowledgments in the State of California, personally appeared M4-f'tS'~ 5>A-!3bz1, who produced oe1v-e'25 L{C...- as identification. (S)He who acknowledged before me that (s)he executed the foregoing instrument for the purposes therein stated on the Z,. 3> day of _') v r--t., Subscribed to before me this -z.. 3 day of ) vtv (print, type, or stamp commissioned Notary Public) Personally known or Produced Identification i..--- (check one) Type ofldentification Produced: D rz\v-fz/l.s UC-_ By: arc Rupp, E 1 q. Fox Rent A Car, Inc West Century Boulevard Los Angeles, CA mrupp@foxrentacar.com (310) Initials:

15 OFFICE OF THE ATTORNEY GENERAL ~::-;7 _/ -~;/ By: ~~; ;:f;4:~ ~~ - Ric)J}lrd P. Laws?n 7 Dtfector, Consumer Protection Division Department of Legal Affairs Office of the Attorney General 107 W Gaines Street Tallahassee, FL (850) ~~ - 7 Dated: /2f//) By: ;; 7 I /2~~ Ryann Flack Florida Bar No.: Assistant Attorney General 444 Brickell A venue, 6th Floor Miami, FL (305) ext. 562 (305) facsimile Dated: J /I S-/ /.S: 15 Initials: --