Vehicles 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 FTC complaint involved the companies Enterprise, National and Alamo. A $ 15 million jury award from earlier in the year is what the petition comes from the FTC.
Policies aren’t set for renting recalls
The official policy of Enterprise Holdings, which owns Alamo, National and Enterprise Rent-A-Car, allows some recalls to be rented out. Recalls are reviewed and if a rental will “involve the risk of sudden loss of control, safety restraint failures, or fire hazards” then it suitable for renting. Customers assured about safety of autos. Sadly, recalled cars don’t have to be repaired before being rented out.
FTC petition and advertising claims
The Center for Auto Safety and Consumer for Auto Reliability and Safety filed the petition which had Enterprise’s advertising in it. If the FTC grants the petition, Enterprise could no longer use “misleading words like ‘well maintained’ and ’safety and reliability’” in advertising. Spending budget Rent-a-Car in 1990 had an agreement they had to make like this once too. Those concerned with safety were upset with Budget for the 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 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. Representatives of Enterprise said that “Given all we have learned, today we would not rent the car the Houck sisters were driving until it was repaired.”
