Proposed Policies Regarding Recalled Rental Cars Insufficient

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In past posts, we’ve reported that rental car agencies regularly lease recalled cars without fixing the underlying safety issue behind the recall. There have been a number of attempts to fix this problem, including a joint petition filed with the FTC by two consumer groups asking that the FTC investigate the situation, legislation introduced in March by Senator Charles Schumer that would require rental agencies to immediately remove from circulation all recalled cars, and a California bill aimed at reducing the number of recalled rental cars on the road.

In April, in response to the growing concerns regarding the continued leasing of recalled vehicles and the safety concerns this practice poses to consumers, the American Car Rental Association (ACRA), which represents nearly 100 rental car agencies, issued a proposal intended to address the situation. Under the proposal, a system would be set up that would allow rental car agencies to assess the seriousness of an automobile recall and then determine whether or not to remove the recalled car from the road.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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