Budget Rent a Car Sued for Discrimination Based on Zip Code Pricing

Budget Rent a Car Corp., a prominent car rental company, has been charged with racial discrimination against African American customers based on information uncovered in a 1997 class-action lawsuit. The lawsuit, filed by the Detroit law firm Charfoos & Christensen, alleged that Budget's car rental rates were higher for customers living in predominantly African American zip code areas. The plaintiffs, all African Americans, claimed they were overcharged by Budget due to their zip code. Despite denying any targeting of minorities, the law firm found that 84% of those overcharged were African American. Budget subsequently stopped using zip code-based pricing after the initial lawsuit was filed.

Key Takeaways:

• A 1997 class-action lawsuit filed in Wayne County (Michigan) Circuit Court accused Budget Rent a Car Corp. of racial discrimination in car rental rates based on renters' zip codes.
• The plaintiffs, all African American, claimed they were overcharged by Budget due to their zip code, with about 84% of those overcharged being African American.
• The law firm Charfoos & Christensen discovered the alleged discrimination after conducting an investigation.
• Budget denied targeting minorities and claimed the rates were not discriminatory.
• The company discontinued zip code-based pricing after the initial lawsuit was filed.
• The lawsuit resulted in a significant shift in Budget's pricing strategy, with the company avoiding zip code-based pricing.

Statistics:

• 84% of those overcharged by Budget were African American.
• The lawsuit was filed in 1997 in Wayne County (Michigan) Circuit Court.

Sources:

• "Budget Rent a Car Corp. Sued for Discrimination" (no date mentioned, assumed to be from 1997).
• "Charfoos & Christensen" (no date mentioned, assumed to be from 1997).
• "LISLE - Budget Rent..." (Chicago Tribune, 1997).
• No additional sources were specified in the original text.