INTERNET hire car companies are acting legally under European Union (EU) law if they refuse to pay full refunds to customers who cancel bookings, the European Court of Justice (ECJ) has ruled. In a case involving Britain's easyCar, judges ruled its services were covered by an exemption for 'transport services' to an EU Directive on distance contracts, which insists on full refunds for contracts cancelled within a reasonable period of time.

easyCar only offers full refunds for cancellations sparked by 'unusual and unforeseeable events' beyond a customers' control, including serious illness, natural disasters, government actions, war, riots or terrorism. The case was brought against easyCar by Britain's Office of Fair Trading, which had received complaints about easyCar's refund policy.