Cars which were recalled but never serviced won’t be able to be rented if auto-safety groups get their way with the Federal Trade Commission. The companies targeted by this FTC complaint are Enterprise, National and Alamo. A $ 15 million jury award from earlier in the year is what the petition comes from the FTC.
No policy for renting recalls
Recalls are allowed to be rented out with the policy of Enterprise Holdings, as outlined by Alamo, National and Enterprise Rent-A-Car. Recalls are reviewed and if a rental will “involve the risk of sudden loss of control, safety restraint failures, or fire hazards” then it is not suitable for renting. Customers assured about safety of autos. This means recalled autos may be rented out nevertheless.
FTC petition includes advertising claims
Enterprise’s advertising was in the petition filed to the FTC by the Center for Auto Safety and Consumers for Auto Reliability and Safety. If the FTC grants the petition, Enterprise could no longer use “misleading words like ‘well maintained’ and ’safety and reliability’” in advertising. Budget Rent-a-Car in 1990 had an agreement they had to make like this once too. Budget was renting defective automobiles that hadn’t been repaired also.
Lawsuit for recall rentals
Carol Houck sued Enterprise Rent-A-Car in May. A 2004 accident happened killing two daughters of Houck. The PT cruiser the women drove was recalled because of power steering. Enterprise admitted full liability in that accident, and a jury awarded the family a $ 15 million judgment. As outlined by an Enterprise representative, “Given all we have learned, today we would not rent the vehicle the Houck sisters were driving until it was repaired.”
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