Avis Faces Class Claims After Arbitration Agreements Rejected

Avis Budget Group Inc. will face class claims it charged renters for unauthorized products and services, after a federal appeals court affirmed denial of its motion to compel arbitration Monday.

The car rental company failed to allege that customers were made aware of an arbitration clause when signing a rental agreement, the U.S Court of Appeals for the Third Circuit said.

A proposed class of plaintiffs who rented cars in the United States and Costa Rica sued Avis in New Jersey, alleging violations of state consumer fraud laws. Avis imposes a fuel surcharge on vehicles returned with full gas tanks, ...