Full Breakdown
Jack Schlossberg Calls for FTC Investigation into AI Use by Rental Car Companies
4/22/2026, 9:41:25 PM
Concerns Over AI in Rental Car Industry
Democratic House candidate Jack Schlossberg is advocating for an investigation into the use of artificial intelligence (AI) by rental car companies, particularly Hertz. Schlossberg, the grandson of former President John F. Kennedy, has raised alarms about potential consumer overcharges stemming from AI-driven damage assessments. He is urging the Federal Trade Commission (FTC) to examine Hertz's implementation of AI technology, which reportedly scans vehicles for damage that may not be visible to the human eye.
Schlossberg's concerns were sparked by a report detailing a customer's experience with Hertz, where a minor scuff on a vehicle led to a $440 charge. The customer faced difficulties disputing the charge, as the company's chatbot did not provide access to a live representative. Hertz has partnered with the Israeli company Uveye to utilize AI for vehicle inspections, aiming to enhance the accuracy and efficiency of the damage assessment process.
Proposed Actions and Legislative Intent
In his campaign, Schlossberg has outlined four specific actions he wants the FTC to undertake:
1. Conduct a thorough investigation into Hertz’s AI damage detection practices.
2. Assess whether these practices constitute unfair or deceptive acts under federal law.
3. Establish clear guidelines for AI use in consumer-facing financial decisions.
4. Ensure that consumers have a transparent and accessible process for disputing charges.
Schlossberg emphasized that the use of AI in this manner could signify a troubling trend in corporate practices, potentially leading to price gouging and unfair charges against consumers. He stated, "This is the new frontier of corporate fine print because AI is being used in ways we couldn't imagine to price gouge... and basically just squeeze every nickel and dime out of consumers that they possibly can."
Hertz's Response
In response to Schlossberg's claims, a spokesperson for Hertz defended the company's use of AI, stating that digital vehicle inspections enhance precision and transparency in a traditionally manual process. The spokesperson asserted that these inspections protect customers from being charged for damages that did not occur during their rental and facilitate quicker resolutions when disputes arise. Hertz also noted that customers receive comprehensive reports, including before-and-after photos, to aid in discussions about any charges.
Implications for Consumers and Upcoming Elections
Schlossberg's announcement comes as many New Yorkers prepare for summer travel, highlighting the potential pitfalls of renting cars amid evolving AI technology. He aims to raise awareness among consumers about these issues as he campaigns for a seat in Congress representing New York's 12th Congressional District. The primary election is scheduled for June 23, and the winner is expected to have a strong chance in the general election in this heavily Democratic area.
The FTC has not commented on Schlossberg's request for an investigation, leaving the future of AI regulations in the rental car industry uncertain.
