Holidaymakers are safer from hidden charges when hiring a car, competition authorities say.

A review of the car rental industry found that firms were not completely honest with their pricing strategy as they advertised lower costs by hiding extra charges. Several leading firms have been warned against these practices.

Regulation is enforced to protect holidaymakers from these hidden costs. Consumer protection law requires transparent pricing structures and the UK's competition and Markets Authority (CMA) has ensured that all charges such as young driver fees, fuel surcharges and out of hours pick up charges are made very clear.

The CMA has vastly improved this sector and is acting against car hire companies based overseas who are selling directly to UK customers online.

Leon Livermore of the Chartered Trading Standards Institute said "UK consumers have enough to contend with without worrying about hidden charges for car services. The CMA guidance and action will ensure businesses are transparent and upfront so that consumers can make informed decision."