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FTC puts possible ban on renting recalled vehicles

Auto-safety groups sent in a request for the Federal Trade Commission to make it impossible to rent recalled automobiles. Enterprise, National and Alamo are the companies the FTC complaint comes from. The petition to the FTC follows a $ 15 million jury award from earlier this year.

No policy 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. All recalls that “involve the risk of sudden loss of control, safety restraint failures, or fire hazards” cannot be rented. Cars checked for safety by Enterprise. This means recalled cars may be rented out nevertheless.

FTC petition and advertising claims together

Enterprise’s advertising was within 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. Those concerned with safety were upset with Spending budget for the same reason.

Lawsuit over recalled rental

Carol Houck sued Enterprise Rent-A-Car in May. Houck was the mom of women which were killed in an accident that occurred in 2004. The women were driving a rented PT cruiser that had been recalled for power steering issues. A $ 15 million judgment was given to the family when Enterprise took full responsibility. Representatives of Enterprise said that “Given all we have learned, today we would not rent the automobile the Houck sisters were driving until it was repaired.”

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