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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 autos. 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

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. Enterprise assures customers that the safety is its first concern. Sadly, recalled vehicles do not have to be repaired before being rented out.

Advertising claims in FTC petition

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. 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 exact same reason.

Possible recall rental suit

May was when Enterprise Rent-A-Car was sued by Carol Houck. Houck was the mom of women which were killed in an accident that occurred in 2004. 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 vehicle the Houck sisters were driving until it was repaired.”

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