Context:

New York Democratic House candidate Jack Schlossberg, JFK’s grandson, is urging the Federal Trade Commission to probe Hertz over AI-driven damage detection that critics say could overcharge consumers. The push follows reports that a small scuff led to a $440 charge after a car drop-off, with complaints about abrupt charges and a chatbot that limited live escalation. Schlossberg frames AI as a growing consumer-finance squeeze and seeks four FTC actions to curb potential unfair practices and establish clear AI guidelines. He intends to push these measures into federal law if elected in NY-12, signaling a broader push to guard consumers amid accelerating AI deployment. The debate arrives as Memorial Day travel season looms and Hertz defends its digital inspections as increasing accuracy and transparency.

Dive Deeper:

• Jack Schlossberg appears outside a Hertz location in Manhattan to advocate for a Federal Trade Commission investigation into Hertz's use of AI to scan for car damages, arguing it may constitute unfair trade practices.

• A Drive report documented a customer who was charged $440 for a 1-inch rear-wheel scuff discovered after return, with charges covering repair, processing, and an administrative fee, and the dispute process reportedly routed to review without immediate live help.

• Hertz has partnered with Israel-based Uveye to deploy AI scanning at airports and uses cameras and machine-learning to assess returned cars, aiming to reduce manual inspections and improve speed and accuracy.

• Schlossberg’s proposed actions include a full FTC investigation into Hertz’s AI damage-detection, a determination of whether the practice violates federal unfair/deceptive acts, clear AI-use guidelines for consumer-facing financial decisions, and a transparent dispute path for charges.

• Hertz defended its approach, saying digital inspections enhance precision and protection against charges for preexisting damage, and noted ongoing improvements since launching over a year ago, including better communication and support channels.

• The FTC declined to comment on the matter, and Schlossberg is running in a crowded NY-12 Democratic primary on June 23, with the campaign framing the issue as a broader warning about AI-driven pricing tactics.

• The situation underscores a broader public-policy tension as AI technologies are increasingly used in consumer-facing services, with advocates calling for consumer protections ahead of peak travel season.