What is the name of the travel rewards program mentioned in the Daniel Klein case against Budget?
Budget Franchise · 2025 FDDAnswer from 2025 FDD Document
practices. The case was settled with ABG paying $3.25 million on June 2, 2016.
Daniel Klein and Stephanie Klein, on behalf of themselves and others similarly situated v. Budget Rent A Car System, Inc. and Avis Budget Car Rental, LLC (United States District Court for the District of New Jersey, Case No. 2:12-CV-07300-JLL-MAH). On November 27, 2012, Plaintiffs Daniel Klein and Stephanie Klein, participants in Budget's travel rewards program ("Travel Rewards Program"), filed a putative class action against ABCR and Budget, alleging a failure to adequately disclose to participants in the Travel Rewards Program that defendants impose a surcharge for frequent flyer miles earned through online rental transactions. Plaintiffs have asserted claims for violations of the New Jersey Consumer Fraud Act, breach of contract, breach of implied covenant of good faith and fair dealing, and seek monetary damages, and injunctive and declaratory relief. The District Court granted final approval to a class action settlement in this matter on June 21, 2016. Pursuant to the district court's final approval order, payment of $3,050,000 in attorneys' fees and $10,000 in incentive awards was paid by ABG on December 5, 2
Source: Item 3 — LITIGATION (FDD pages 12–16)
What This Means (2025 FDD)
According to Budget's 2025 Franchise Disclosure Document, the Daniel Klein case involved Budget's travel rewards program, referred to as "Travel Rewards Program". The case, filed on November 27, 2012, alleged that Budget failed to adequately disclose to participants in the Travel Rewards Program that they impose a surcharge for frequent flyer miles earned through online rental transactions.
The plaintiffs in the case asserted claims for violations of the New Jersey Consumer Fraud Act, breach of contract, and breach of implied covenant of good faith and fair dealing. They sought monetary damages, as well as injunctive and declaratory relief. The District Court granted final approval to a class action settlement in this matter on June 21, 2016.
As a result of the settlement, ABG paid $3,050,000 in attorneys' fees and $10,000 in incentive awards on December 5, 2016. All settlement benefits were distributed to the class by February 20, 2017. This case highlights the importance of clear and transparent disclosure of all fees and surcharges associated with travel rewards programs to avoid potential legal issues and maintain customer trust.