Jack Schlossberg, a Democratic candidate and JFK’s grandson, is urging the Federal Trade Commission to probe how rental companies use artificial intelligence to inspect returned cars, saying automated scans can lead to surprise charges customers cannot easily dispute. His complaint stems from reports of a renter who was billed hundreds of dollars after a machine-flagged scuff, and it raises bigger questions about transparency, consumer access to dispute processes, and whether AI tools are being used to squeeze fees from travelers. Hertz and its partner argue the tech brings consistency and faster resolution, but critics point to limited human oversight and opaque customer service as gaps that regulators should address. The debate lands as summer travel picks up, with consumers increasingly dependent on digital inspections when renting vehicles.
Schlossberg has asked the FTC to investigate reports that Hertz began using AI last year to scan cars for damage, a practice he warns could translate to unfair charges for renters. He frames the issue as more than a single customer complaint, calling it a window into how machine decisions can affect everyday transactions and the pocketbooks of ordinary people. From a Republican perspective focusing on plain consumer protection, the concern is simple: if technology is going to decide who pays, taxpayers and voters deserve clear rules and easy recourse. Lawmakers on either side should be looking at whether existing consumer safeguards are keeping up with automated decision-making.
One reported case involved a renter who received notice minutes after dropping off a car that a one-inch scuff on a wheel had triggered a $440 charge, including repair and processing fees. Attempts to contest the charge ran into a chatbot that did not provide an immediate way to reach a live person, leaving the customer to wait for a later review. That sequence highlights two trouble spots: aggressive fee structures tied to minor wear and systems that make it hard to get a prompt human review. When tech replaces human judgment, companies must still be accountable and accessible.
“AI is being used in consumer-facing financial products, and Hertz is using AI to scan for microscopic damage on cars, invisible to the human eye, to charge people with fees for damage that they might not even be aware of, they have no opportunity to dispute, and the FTC should act here to investigate whether or not this constitutes an unfair trade practice,”
Hertz has rolled out digital vehicle inspections at airport locations in partnership with a vendor that uses cameras and machine learning to spot damage, with stated goals of improving accuracy and efficiency and cutting down on manual checks. The company says the system creates before-and-after reports and helps protect customers from being blamed for damage that happened before their rental. Those are reasonable claims on their face, and automating routine work can bring benefits if done with safeguards. But critics say benefits do not erase the need for clear dispute channels and limits on what algorithms can bill for.
The campaign behind Schlossberg framed the push as a consumer-first move, warning that technological innovation should not be a cover for gouging renters. “innovation must not come at the expense of the consumer.” That line captures the broader worry that powerful tools can be misused without strong transparency rules. From a Republican-leaning consumer-rights angle, the goal is to push regulators to act in defense of customers and ensure private-sector tech does not become a new form of hidden taxation.
“I think that this is a harbinger of what’s to come,” Schlossberg said. “This is the new frontier of corporate fine print because AI is being used in ways we couldn’t imagine to price gouge, price fix, jack up prices on consumers without their consent, and basically just squeeze every nickel and dime out of consumers that they possibly can. And sometimes this can be unfair.”
Hertz responded with a detailed statement defending its approach and pointing to improvements made since the rollout, saying “Digital vehicle inspections bring precision and transparency to a historically manual and inconsistent process while also enhancing the safety, quality, and reliability of our fleet. They protect customers from being charged for damage that didn’t occur during their rental while enabling faster, fairer resolution when it does.” The company also said it has been adjusting communication, awareness at inspection locations, and support channels in response to feedback.
“Since launching over one year ago, we’ve been listening, learning, and improving based on customer feedback — increasing communication, enhancing awareness at digital inspection locations, and strengthening our support channels. We’re committed to building upon the progress we’ve made to continue providing our customers with a more consistent rental experience and safer fleet.”
Even with those assurances, questions remain about whether customers always receive clear photo evidence and timely human review when disputes arise. Regulators like the FTC so far have not commented publicly on the specific request, leaving a gap that invites congressional attention. Schlossberg is a Democratic candidate in a crowded primary, and his push for an FTC probe doubles as both a consumer complaint and a campaign issue heading into June. Lawmakers should treat the concern seriously: if AI is reshaping financial interactions, the rules need to protect citizens first and tech firms second.
Graduate Student, wife, engaged political and legal writer.