Rental Car Industry Under Fire: Discrimination and Consumer Negligence Unveiled

Hi Hive, 

Several major rental car companies are currently under scrutiny for alleged discriminatory practices and negligence toward both customers and employees, resulting in multiple lawsuits.

Enterprise Holdings

In September 2023, the Equal Employment Opportunity Commission (EEOC) filed a lawsuit against Enterprise Leasing Company of Florida, LLC—a subsidiary of Enterprise Holdings, which operates Enterprise Rent-A-Car, National Car Rental, and Alamo Rent a Car. The lawsuit alleges that the company engaged in age discrimination by systematically refusing to hire qualified older applicants for management trainee positions. The EEOC contends that individuals aged 40 and above were significantly underrepresented in these roles, constituting less than 2% of hires, despite possessing the necessary qualifications. 

Hertz Corporation

In February 2024, Disability Rights Advocates filed a class-action lawsuit against the Hertz Corporation in the Northern District of California. The suit alleges that Hertz discriminates against drivers with disabilities by limiting the availability of hand controls to certain vehicle models, thereby restricting options for customers who require such accommodations. This practice is claimed to violate the Americans with Disabilities Act (ADA). 

Additionally, since 2019, Hertz has faced numerous reports of falsely accusing customers of car theft, resulting in wrongful arrests and detentions. In December 2022, Hertz announced settlements totaling approximately $168 million to resolve over 95% of these claims. 

Avis Budget Group

Avis Budget Group, operating Avis Car Rental and Budget Rent a Car, has faced legal challenges concerning discriminatory practices. In the case of Stevenson v. Avis Car Rental, the plaintiff, Eddie Stevenson, an African American male, alleged racial discrimination during a rental transaction. The lawsuit claimed that Stevenson was subjected to differential treatment based on his race, highlighting concerns about discriminatory practices within the company. 

Furthermore, in September 2024, Travelers United, a nonprofit consumer protection organization, filed lawsuits against Avis and Budget. The suits allege that these companies systematically charged consumers mandatory "junk fees" beyond the advertised rental prices.

Zipcar

Zipcar has faced multiple lawsuits alleging the imposition of excessive or hidden fees on customers. In August 2016, the company agreed to a settlement addressing claims of charging illegal damage fees to New York consumers.

These cases highlight concerns about the business practices of rental car companies and their potential negligence toward consumers. They underscore the importance of transparency and adherence to consumer protection laws within the industry.



Sources: Ap News, The Scottish Sun, The Sun 

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