JFK Grandson Jack Schlossberg Calls for FTC Probe of AI Rental-Damage Scans After $440 Billing Claim

As New Yorkers prepare Memorial Day and summer travel, Democratic congressional candidate Jack Schlossberg is urging the Federal Trade Commission to investigate how rental car companies — and potentially other industries — are deploying artificial intelligence to detect vehicle damage and assess consumer charges.

Incident That Prompted the Call

Schlossberg spoke with Fox News Digital outside a midtown Manhattan Hertz location, citing a report in The Drive that a customer received a notification minutes after returning a rental that a roughly 1-inch scuff on a rear driver-side wheel had generated a $440 bill. The charge was itemized as $250 for the repair, $125 for processing and a $65 administrative fee. The customer said attempts to dispute the charge were hampered by an automated chatbot that did not provide immediate access to a live representative and routed the case for later review.

Fox News Digital spoke to Jack Schlossberg about his concerns that artificial intelligence is being used to overcharge consumers.(Fox News)

How the Technology Works

Hertz has partnered with Israel-based Uveye to roll out AI-driven inspection systems at airport locations over the past year. According to reports, the system uses cameras and machine-learning algorithms to scan returned vehicles with the goal of improving the "frequency, accuracy, and efficiency" of inspections and reducing reliance on manual checks.

Schlossberg's Demands

Schlossberg is asking the FTC to take four specific actions and says he would seek to codify them into law if elected to Congress from New York's 12th District:

The entrance to Hertz Car Rentals and the Ziegfeld Ballroom in Midtown Manhattan on May 17, 2023.

• Conduct a full investigation into Hertz’s use of AI-driven damage detection;
• Determine whether the practice constitutes an unfair or deceptive act under federal law;
• Establish clear guidelines for the use of AI in consumer-facing financial decisions; and
• Ensure consumers have transparent, fair, and accessible dispute processes.

"I think that this is a harbinger of what's to come," Schlossberg said, calling it a "new frontier of corporate fine print" and warning that AI could be used to impose hidden fees or otherwise extract additional revenue from consumers without meaningful consent.

Hertz Response

Hertz pushed back in a statement to Fox News Digital, 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 added that since launching the program it has been "listening, learning, and improving" — boosting communication, increasing awareness at digital inspection locations, and strengthening support channels. Hertz also said customers receive comprehensive reports with before-and-after photos and can contact customer care by email, phone or chat.

Context and Next Steps

The FTC declined to comment. Schlossberg framed his mid-April announcement as an effort to "get ahead of the peak season booking" and warn travelers about potential pitfalls when renting vehicles as AI tools become more common. Schlossberg is competing in a crowded Democratic primary on June 23 for New York’s 12th Congressional District, a heavily Democratic seat where the primary winner is widely expected to win the general election.

Sources: Fox News Digital, The Drive, Car & Driver