Jack Schlossberg Calls for Investigation into AI Use by Car Rental Companies

As many New Yorkers prepare for Memorial Day travel, Jack Schlossberg, a Democratic candidate for the House, is urging an investigation into how car rental companies, particularly Hertz, are employing artificial intelligence.

Schlossberg, who is notably the grandson of former President John F. Kennedy, has reached out to the Federal Trade Commission (FTC). He expressed concerns after hearing reports that Hertz began utilizing AI technology to identify damage on rental cars last year. He worries this could lead to consumers being overcharged for damages they might not even be aware of.

“AI is being integrated into financial products, and Hertz is using it to find tiny damages that aren’t visible to the naked eye, then charging customers for them,” Schlossberg remarked. He believes customers have no real opportunity to contest these charges, which he feels warrants FTC investigation for unfair trading practices.

His apprehensions were echoed in a report from The Drive, featuring an incident involving a Hertz customer who was informed of a one-inch scratch on his rental car shortly after returning it, resulting in a hefty charge of $440 that included various fees.

Schlossberg is really trying to draw attention to the broader implications of AI on consumer protection. From his perspective, AI is being used in ways that could manipulate prices without consumer consent. “I think this points to a troubling trend in the corporate world,” he said, adding that if he gets elected in NY-12, he plans to advocate for new laws that govern AI usage in consumer transactions.

He has called on the FTC to investigate Hertz’s AI practices, set clear guidelines for AI in financial decisions, and ensure a fair process for disputing charges. These changes, he believes, are necessary for consumers’ protection.

Hertz responded to Schlossberg’s claims, stating that their digital inspections enhance accuracy and safety, ensuring that customers aren’t falsely charged for damage they didn’t cause. They also highlighted their commitment to addressing customer feedback and improving communication regarding these inspections.

Schlossberg is clear in his message: his mid-April announcement aimed to prompt discussions before the peak travel season, ensuring New Yorkers are informed about the potential issues they might encounter when renting cars with emerging AI technology.

The FTC has yet to comment on the matter.

Schlossberg is running in a highly competitive primary on June 23 for New York’s 12th Congressional District, which is expected to lead to a strong chance of winning in the general election given its Democratic leanings.