U-HAUL ORDERED TO STOP USING THE TERM: "CONFIRMED RESERVATION"

The plaintiffs prevailed in a class action law suit alleging that U-Haul falsely advertised the availability of "confirmed reservations." In a Memorandum of Decision (attached) filed July 25, 2006, Judge Samuel S. Stevens of the Superior Court of Santa Cruz County found that "in general, and at busy times in particular, there was a substantial failure of U-Haul to provide equipment at the times and places reserved."

In holding that U-Haul's conduct violates the California Consumer Legal Remedies Act, the Unfair Competition and the False Advertising laws, Judge Stevens wrote: "The crux of this litigation is U-Haul's use of the words "confirmed reservation." It is easy enough to understand why U-Haul wishes to use those words. They wish to lock up customers as soon as possible and minimize the chances that customers are going to shop around. Should a customer discover that the equipment reserved is not available at the time or place specified, that customer is going to have few last minute options. This is all part of U-Haul's business plan. The use of these words is problematic. U-Haul cannot know with any degree of certainty what equipment is going to be available at any location for many of the reservations it accepts. . . . The marketing scripts and screens are designed to promise confirmed reservations and then, with less than specific language, take it away. What is being sold is simply not a confirmed reservation and should not be marketed as such."

The injunction applies to transactions in California except for dealer originated in town (round trip) transactions. The injunction otherwise will affect all 800 number, internet and one way rentals.

The class action (Rosenberg v. U-Haul, Case # 144045) was filed in July 2002. A three week trial ended in April 2006. Attorneys for the class are: Thomas A. Cohen (Law Offices of Thomas A. Cohen); Michael F. Ram (Levy, Ram and Olson); and Kent Washburn. The named plaintiffs are Alan Rosenberg, Windy Holt, Sandi McCleary, Kim Walbaum, Sharon Webb and Michelle Richmond.

For further information, contact:

Thomas A. Cohen
639 Front St., 4th floor
San Francisco, CA 94111
(415) 777-1997
tomcohen@bigfoot.com

Reposted with written permission.

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