Automobiles that 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. The FTC petition is happening after a $ 1 million jury award was given out this year. Source for this article – FTC trying to ban practice of renting out recalled vehicles by Auto Deal Expert.
Recalls can 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. The official policy is that all recalls are reviewed, and any recalls that “involve the risk of sudden loss of control, safety restraint failures, or fire hazards” are reviewed for removal until fixed. Automobiles checked for safety by Enterprise. Sadly, recalled autos do not have to be repaired before being rented out.
FTC petition and advertising claims together
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. In 1990, Spending budget Rent-a-Car made an agreement comparable to this. Those concerned with safety were upset with Spending budget for the exact same reason.
Renting recalls causing lawsuit
Carol Houck sued Enterprise Rent-A-Car in May. Houck was the mother of two young women who were killed in a 2004 accident. The power steering within the PT cruiser being driven had a problem which is why it was recalled. A $ 15 million judgment was given to the family when Enterprise took full responsibility. Enterprise said, “Given all we have learned, today we would not rent the vehicle the Houck sisters were driving until it was repaired.”
No comments:
Post a Comment