Shared scooters and private lease cars have taken off in recent years. But as a user, what rights do you have? Josje de Vogel of Erasmus School of Law and the University of Antwerp is investigating this topic for her PhD and has noticed that consumers are sometimes exposed to significant risks. She is therefore calling for new European legislation. 'Sometimes even a flat tyre or roadside assistance isn’t covered. And it’s not uncommon to find that you’re not even allowed to go abroad with a private lease car.'
Imagine you have grabbed a shared scooter to get to your appointment in the city on time. It has two bars of battery power – that ought to be enough. But the scooter suddenly stops and you cannot finish the trip, so you leave the scooter on the pavement. That happened to Josje de Vogel. She was researching the rights of people who use means of transport they do not own, such as shared scooters and cars, as well as private lease arrangements. 'As you can imagine, I kind of liked the fact that this happened to me during my research. And as a lawyer, I immediately thought: there’s no way I’m going to pay those extra costs', the researcher shares.
Private leases and the fine print
Although the PhD candidate’s case involved a relatively small amount, the consequences can be much greater with a private lease car. She combed through the terms and conditions of dozens of providers in the Netherlands, France, Germany and Belgium and immediately noticed big differences between providers. 'Sometimes even a flat tyre or roadside assistance isn’t covered, or it says in the fine print that you need a separate bundle to change winter tyres. There was even a German provider that said that, if you find a defect, then you, the consumer, have to contact the manufacturer yourself. Also, sometimes you’re not even allowed to go abroad, or you’re not insured if you don’t report your trip abroad in advance.'
The EU sees the transition from possession to use as a key part of making mobility sustainable. It means fewer cars will be needed and providers will have an incentive to properly maintain and repair vehicles, thus extending their life cycle. Consumers will be able to drive relatively expensive electric cars without significant initial capital, which is more sustainable than buying old diesel cars. Yet market research shows that many people find lease contracts too expensive. Moreover: 'Contracts are often presented as if they offer highly favourable terms, but then you have to sign up for all kinds of extras to get proper service.'
Fortunately, in the Netherlands, you don’t have to worry so much about looking for the catch when you sign a private lease. The sector has teamed up with the Consumers’ Association to create a private lease quality label. If a provider has this label, repairs, roadside assistance and replacement transport are always guaranteed. The providers have also agreed to do credit checks. “The market has taken this step itself”, says the lawyer. 'So it’s doing more than the legal minimum. That’s working well for now, but a quality label can fall apart due to disagreements, for example.' What’s more, providers are not obliged to sign up to the quality label. For instance, in 2021, when a discount provider went bankrupt, their cars were collected, and affected customers didn’t get a refund on their prepaid instalments.
New European legislation
The lawyer is advocating for new European legislation to raise the legal standard and make credit checks mandatory. Private leases often cost hundreds of euros per month. But while iPhone plans get registered with the Dutch Credit Registration Office (BKR), this is by no means always the case with private leases, and even if they are registered, this only covers part of the cost. 'Although private leases can be classified as consumer credit, some countries have chosen to explicitly exclude private leases that relate to credit. That is incomprehensible to me.'
Back to shared scooters. The PhD candidate observes that here, too, consumer rights could be better. If there’s a defect, you’re entitled to a replacement or repair. This is difficult in practice, because you do not want to wait for a mechanic and there is not always an alternative scooter nearby. And sometimes your shared bike still works, but it only has one mudguard and the bell has broken off. 'You can either stop the trip or cut your losses. I would argue that, in a situation like that, providers should offer a price reduction to meet the user halfway. Something like a refund of the initial fee, or free minutes.'
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Josje de Vogel commissioned Studio Wetenschap to create a magazine about her dissertation. Check out the magazine here.
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