As Memorial Day approaches and New Yorkers prepare for summer travel, a new concern is emerging regarding the use of artificial intelligence by rental car companies. Jack Schlossberg, grandson of President John F. Kennedy and a candidate for Congress, is demanding federal scrutiny of these practices.
Schlossberg is urging the Federal Trade Commission to investigate reports that Hertz is utilizing AI to detect even microscopic damage to vehicles. This technology, he argues, could lead to unfair and hidden charges for renters, with little opportunity for dispute.
The concerns stem from accounts like one reported by a driver who was charged $440 for a one-inch scuff on a wheel shortly after returning a rental car. The breakdown included repair costs, processing fees, and an administrative charge, adding up to a significant financial burden.
Attempts to challenge the charge were met with frustration, as the company’s automated chatbot offered no path to speak with a live representative. The issue was simply flagged for later review, leaving the customer in limbo.
Hertz has partnered with an Israeli tech company to implement this AI scanning technology at airport locations. The goal, according to reports, is to improve the speed and accuracy of damage assessments, ultimately replacing manual inspections.
Schlossberg proposes four key actions for the FTC: a thorough investigation into Hertz’s AI practices, a determination of whether these practices violate consumer protection laws, the establishment of clear guidelines for AI use in financial transactions, and a guarantee of a transparent dispute process for consumers.
He believes this situation foreshadows a broader trend of corporations leveraging AI to subtly inflate prices and extract more money from consumers, often hidden within complex terms and conditions. It’s a new frontier of potentially exploitative practices.
Schlossberg warns that some elected officials may be influenced by the AI industry, potentially overlooking the impact on everyday consumers. He insists that technological innovation should not come at the expense of fairness and transparency.
Hertz maintains that the AI inspections are designed to bring clarity and fairness to a process that was previously inconsistent. They claim the technology protects customers from false damage claims and facilitates quicker resolutions when legitimate issues arise.
The company states they are continually refining the system based on customer feedback, improving communication, and strengthening support channels. They also assert that charges are not levied for damage undetectable by the human eye, and comprehensive reports with photos are provided.
Schlossberg timed his announcement to coincide with the peak travel booking season, hoping to raise awareness among New Yorkers before they encounter these potential issues. He wants renters to be informed about the risks associated with emerging AI technology.
The FTC has not yet commented on Schlossberg’s call for investigation. He is currently competing in a Democratic primary election, with the winner expected to have a strong advantage in the general election for New York’s 12th Congressional District.
