Avis 2009 Annual Report Download - page 28

Table of Contents
well as contamination at other locations at which our wastes have reportedly been identified. Our compliance with existing or future
environmental laws and regulations may, however, require material expenditures by us or otherwise have an adverse impact on our financial
position, results of operations and cash flows.
Changes in the U.S. and foreign legal and regulatory environment that affect our operations, including laws and regulations relating to the
environment, insurance products we sell, consumer privacy, data security, employment matters, taxes, automobile-related liability and
insurance rates, could disrupt our business, increase our expenses or otherwise have an adverse impact on our results of operations.
We are subject to a wide variety of laws and regulations in the United States and the other countries and jurisdictions in which we operate, and
changes in the level of government regulation of our business have the potential to materially alter our business practices, financial position and
results of operations. Depending on the jurisdiction, those changes may come about through new legislation, the issuance of new laws and
regulations or changes in the interpretation of existing laws and regulations by a court, regulatory body or governmental official.
Optional insurance products, including, but not limited to, supplemental liability insurance, personal accident insurance and personal effects
protection, we offer to renters providing various insurance coverages in our domestic vehicle rental operations, are regulated under state laws
governing the licensing of such products. In our international car rental operations, our offering of optional products providing insurance
coverages historically has not been regulated. Any changes in U.S. or foreign law that change our operating requirements with respect to
optional insurance products could increase our costs of compliance or make it uneconomical to offer such products, which would lead to a
reduction in revenue and profitability. If customers decline to purchase supplemental liability insurance products from us as a result of any
changes in these laws or otherwise, our results of operations could be materially adversely affected.
In almost every state, we recover from consumers various costs associated with the title and registration of our vehicles. In addition, where
permitted, we also recover from consumers certain costs, including concession costs imposed by an airport authority or the owner and/or
operator of the premises from which our vehicle is rented. Our long-standing business practice has been to separately state the existence of these
additional costs in our rental agreements and invoices, and disclose to consumers additional surcharges used to recover such costs together with
an estimated total price, inclusive of these surcharges, in all distribution channels. We believe that this standard practice comports with the
Federal Trade Commission Act and has been upheld by several courts. We may in the future be subject to potential legislative changes or
administrative action which could limit, restrict or prohibit our ability to separately state, charge and recover such costs, which would result in an
adverse cost reallocation. If any such changes were to be enacted there may be an adverse impact or limitation on our ability to recover all of the
surcharges we currently charge, which could adversely impact our profitability and results of operations.
In 2005, federal legislation was enacted that pre-empted state laws which imputed tort liability solely based on ownership of a vehicle involved
in an accident. If the current law were to change, our insurance liability exposure could materially increase.
The U.S. Congress and other legislative and regulatory authorities in the United States and internationally have considered, and will likely
continue to consider, numerous measures related to climate change and greenhouse gas emissions. Should rules establishing limitations on
greenhouse gas emissions or rules imposing fees on entities deemed to be responsible for greenhouse gas emissions become effective, demand
for our services could be affected, our fleet and/or other costs could increase, and our business could be adversely affected.
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