Aug 20, 2025, 10:30 PM
Aug 20, 2025, 10:30 PM

Congressional scrutiny mounts as Hertz charges customers for damage without human checks

Highlights
  • Rep. Nancy Mace is investigating Hertz's AI damage assessment practices after numerous customer complaints.
  • Hertz uses AI technology for vehicle inspections at six airports but issues charges without human review.
  • The investigation may lead to significant changes in industry standards regarding AI usage and customer protection.
Story

In the United States, Rep. Nancy Mace has raised concerns regarding Hertz's AI damage assessment practices following reports from customers who have been charged for vehicle damages without any human review. The investigation emerged from complaints about Hertz's AI scanning technology, which is claimed to assess rental vehicle damage based solely on artificial intelligence. Additionally, Hertz has entered a partnership with UVeye, a company that specializes in AI vehicle inspection, and this technology is currently deployed at six major airports including Atlanta and Houston. However, there has been a notable increase in customer dissatisfaction regarding charges for damage that may not be easily visible. Mace's inquiry highlights a significant contrast with other car rental companies, which typically utilize AI but ensure that a human representative reviews any flagged damage before billing customers. This practice raises questions about the transparency and fairness of Hertz's assessment process, especially given that customers have reported exorbitant charges, sometimes amounting to hundreds of dollars for minor scuffs or scratches. Mace has requested clarity from Hertz's CEO, Gil West, regarding the implementation and impact of their AI technology. The letter demands a response by August 27, indicating the urgency of the matter. As consumers grow increasingly wary of automated systems that may lack adequate oversight, this issue points to a larger conversation about the implications of AI in customer service and accountability in rental businesses. Ultimately, the outcome of Mace's investigation could influence future industry practices regarding the use of AI in damage assessments, possibly leading to more rigorous human oversight in the rental service sector.

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