The Federal Trade Commission today received a petition from several auto-safety groups that asks for a ban on renting out recalled cars that have not been serviced. Enterprise, National and Alamo are the companies the FTC complaint comes from. The FTC petition is happening after a $ 1 million jury award was given out this year.
Recalls could be renting because of no policy
Alamo, National and Enterprise Rent-A-Car are owned by Enterprise Holdings which has the policy that recalls may be rented. All recalls that “involve the risk of sudden loss of control, safety restraint failures, or fire hazards” cannot be rented. Customers assured about safety of automobiles. Sadly, recalled cars don’t have to be repaired before being rented out.
FTC petition and advertising claims together
The Center for Auto Safety and Consumer for Auto Reliability and Safety filed the petition which had Enterprise’s advertising in it. Enterprise is being accused of using, “misleading words like ‘well maintained’ and ’safety and reliability’” in its advertising, while they wouldn’t be able to do that if the petition is granted. A comparable agreement was reached with Spending budget Rent-a-Car in 1990. Those concerned with safety were upset with Budget for the exact same reason.
Lawsuit over recalled rental
In May, Enterprise Rent-A-Car was sued by Carol Houck. A 2004 accident happened killing two daughters of Houck. The power steering within the PT cruiser being driven had a problem which is why it was recalled. Enterprise admitted full liability in that accident, and a jury awarded the family a $ 15 million judgment. Representatives of Enterprise said that “Given all we have learned, today we would not rent the vehicle the Houck sisters were driving until it was repaired.”
