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U-Haul's deceptive pricing under scrutiny

Image Credits: UnsplashImage Credits: Unsplash
  • Truth in Advertising filed formal complaints with the FTC and state attorneys general, accusing U-Haul of a "bait-and-switch pricing scheme" due to its misleading $19.95 rental rate.
  • Consumers often face unexpected fees and charges, making the final cost significantly higher than the advertised price, a common issue across various industries.
  • The article highlights the challenges consumers face in comparing prices and the potential regulatory actions that could address deceptive pricing practices.

[UNITED STATES] U-Haul trucks are deeply embedded in the American landscape—everywhere and nowhere all at once. You might not notice them until one’s double-parked on your block, clogging up a bike lane, or it’s freshman move-in day at the nearby college. Suddenly, those big white-and-orange vehicles are hard to miss. So is the bold green "$19.95" splashed on the side. But here’s the catch: that number rarely reflects what you'll actually pay.

This week, the nonprofit watchdog group Truth in Advertising (TINA.org) filed complaints with the Federal Trade Commission and attorneys general in nearly two dozen states, calling on them to crack down on what the group calls U-Haul’s “bait-and-switch pricing scheme.” According to TINA, the prominently displayed $19.95 rate—intended for local moves—doesn't include mileage, fees, or other add-ons that many consumers only discover too late.

“There isn’t a single consumer on this planet who pays $19.95 to rent one of these trucks,” said Laura Smith, TINA’s legal director. “The price is simply not true.”

The group’s complaint outlines how U-Haul lures customers with a deceptively low base rate, then layers on charges throughout the booking and rental process. This approach, often referred to as “drip pricing,” is widespread across industries. It starts with an attractive headline price, which balloons as consumers progress through checkout—often too late to turn back.

It’s a familiar frustration in today’s economy, where pricing is frequently opaque and fees abound. Consumers are drawn in by one number, only to be hit with a much larger bill when the dust settles. U-Haul is hardly alone. Airlines, hotels, event ticket sellers, and cable companies all use similar tactics. So common is the practice that many people simply resign themselves to the final charge, however confusing the receipt may be.

Consumer advocates say the heart of the problem is a lack of transparency. While businesses argue that this allows for more flexible pricing, critics contend it misleads customers and undermines market trust. “What it really complicates is price comparison,” says Rebecca Tushnet, a Harvard Law School professor who specializes in false advertising. “It erodes trust and makes the entire market unreliable.”

To illustrate the issue, I pulled up the receipt from my own U-Haul rental back in 2016. The advertised $19.95 rate was there—but so were additional charges: $10.32 for eight miles, $11 for insurance, $1 for an environmental fee (which, per U-Haul’s site, supports sustainable operations), plus taxes. The total? $45.05. More than double the advertised rate—for a quick move across town.

These fees often catch customers off guard—especially when they're already overwhelmed with the emotional and logistical chaos of moving. Even those who try to read the fine print may miss crucial details, especially when disclaimers are printed in tiny text on a moving vehicle.

Moreover, certain fees are unavoidable. The so-called “environmental fee” is applied automatically, immediately driving up the cost beyond $19.95. Others, like insurance or equipment rentals, may not be technically required but are heavily encouraged. Some are even pre-selected during checkout, forcing customers to manually opt out or navigate hard-to-find settings to avoid extra charges.

“They’re not mandatory, but you have to sift through those screens before you actually check out,” Smith noted.

TINA has received numerous consumer reports of surprise charges—fees for cleaning, extra mileage, late returns, lost keys, and more—many of which renters say were unfair. “The issue isn’t what U-Haul charges,” Smith added. “It’s how they present the pricing. People go in expecting a budget option, and they leave with a long receipt and a much lighter wallet.”

Such pricing practices don't just affect individual customers—they have broader consequences. When deceptive tactics become the norm, honest companies face pressure to follow suit just to stay competitive, eroding both trust and market integrity.

This isn’t U-Haul’s first brush with scrutiny. In 2010, the company settled with the FTC over allegations that it had invited a competitor to collude on price fixing for one-way rentals. While U-Haul did not admit wrongdoing at the time, Smith says the current complaints show that the company is still engaging in questionable marketing. “It’s a different kind of deceptive pricing now, but the behavior persists,” she said.

And business appears to be booming. In its fiscal third quarter ending last December, U-Haul reported a $38.8 million increase in revenue from self-moving equipment rentals—a 4.6% rise from the previous year. Both local and long-distance rentals saw a boost in per-transaction revenue.

U-Haul did not respond to requests for comment. In the 2010 settlement, it denied wrongdoing. Moving is already an ordeal—physically exhausting, emotionally taxing, and almost always more expensive than anticipated. U-Haul markets itself as a cheaper, DIY-friendly alternative to full-service movers. But when hidden fees stack up, the affordability argument can start to crumble.

“They’ve already invested time and energy into the process,” Smith said. “When you show up on moving day and realize that $19.95 is actually $60, are you really going to walk away? Probably not.”

That’s what companies using bait-and-switch pricing count on: that, by the time the real price is clear, customers are too committed—too tired or overwhelmed—to say no.

This type of pricing is increasingly common across sectors. Airlines justify add-on fees as a way for passengers to customize their experience. Banks defend overdraft fees as tools for financial responsibility. Rental car companies often point fingers at airports or local governments for extra charges. But whatever the rationale, the outcome is the same: confused consumers, opaque costs, and limited recourse.

“People give up,” Tushnet said. "


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