Case settled: U-Haul tried to fix truck rental prices by talking to Budget

Before you go, we thought you'd like these...
Before you go close icon
The Federal Trade Commission approved a final order settling allegations that U-Haul invited its main competitor, Budget, to fix truck-rental prices.

The settlement, which followed a public comment period, bars U-Haul and its parent company, AMERCO, from colluding or inviting collusion. Under the settlement, AMERCO agreed to a 20-year order that includes monitoring to ensure the company doesn't make any further attempts to collude with competitors at consumer expense.

"It's a bedrock principle that you can't conspire with your competitors to fix prices -- and shouldn't even try," FTC Chairman Jon Leibowitz said in a written statement in June when the settlement was first announced. "Consumers deserve better. The order announced today will ensure that U-Haul will not try it again."

U-Haul and Budget control more than 70% of the self-moving truck rental business, and between 2006 and 2008, the FTC charged, U-Haul tried to hike the cost of one-way truck rentals in conversations with Budget. The FTC quoted a memo sent by U-Haul CEO Edward J. Shoen that noted competition from Budget was driving down U-Haul's prices.

"Budget continues in some markets to undercut us on One-Way rates," the memo said. "Either get below them or go up to a fair rate. Whatever you do, LET BUDGET KNOW. Contact a large Budget Dealer and tell them. Contact their company store and let the manager know."

As reported in June, FTC spokesman Mitch Katz told Consumer Ally the commission didn't seek a penalty against U-Haul because it failed to make a deal with Budget.
Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners