A congressional candidate is urging the Federal Trade Commission (FTC) to investigate Hertz’s use of artificial intelligence to charge customers for vehicle damage automatically.
New York Democratic congressional candidate Jack Schlossberg called on the FTC to examine whether the company’s AI-powered vehicle inspection system constitutes an unfair practice. The agency pushed back sharply, stating it does not respond to political demands and declined to comment on any potential investigation.
Schlossberg is the only living male heir of former President John F. Kennedy, who previously launched a 2026 congressional campaign in New York, as reported by The Dallas Express.
“We do not ‘receive’ demands from political candidates and I am completely unfamiliar with anything that individual has ever said, nor do I have any desire to begin,” FTC Director of Public Affairs Joseph Simonson told The Dallas Express via email. “As per the actual issue at hand, we do not disclose the status or existence of any investigations. Out of curiosity, what did the last administration do on this issue?”
Schlossberg Blasts Hertz AI for Detecting “Microscopic Damage” and Overcharging Customers
Schlossberg released a video on April 13, 2026, criticizing Hertz’s use of AI scanning technology. In the video, he claimed the system can detect “microscopic damage invisible to the naked human eye” and warned it could be used to “nickel and dime and squeeze consumers.”
“The FTC needs to find out whether or not this constitutes an unfair practice and whether or not consumers have a meaningful opportunity to dispute these charges,” Schlossberg said. He added that if he is elected to Congress, he would introduce legislation on the matter.
The company has previously said in a press release that the technology—developed in partnership with Israeli firm UVeye—is intended to improve transparency and accuracy in identifying vehicle damage. The system scans cars before and after rentals and automatically generates reports and charges if new damage is detected.
More than 97% of vehicles scanned show no billable damage, according to a company statement reported by USA Today, which said the goal is to ensure customers are not charged for damage they did not cause while increasing “transparency, precision, and speed.”
Still, concerns about the system are not new. Lawmakers, including Representative Nancy Mace (R-SC), have previously questioned whether fully automated damage assessments, particularly those issued without human review, could create challenges for consumers trying to dispute charges.
Reports have described cases in which customers were billed hundreds of dollars for relatively minor damage and had difficulty reaching a human representative. One customer was charged $440 for a wheel scuff and said the system encouraged quick payment by offering limited-time discounts, according to The Drive.
Schlossberg’s Hertz AI Complaint Lands Amid Rising FTC Scrutiny of Artificial Intelligence
Schlossberg’s call for action comes as federal regulators have increasingly scrutinized artificial intelligence across industries.
While the specific Hertz issue did not exist during the prior administration, the FTC took action against companies over AI-related practices through initiatives such as “Operation AI Comply.”
That enforcement sweep targeted firms accused of using AI to engage in deceptive or unfair conduct, including misleading claims about AI capabilities and tools that allegedly enabled fraud. Then-FTC Chairwoman Lina Khan also warned that there is “no AI exemption” from existing consumer protection laws and that companies can face penalties for deploying automated systems that harm consumers.
In a 2023 joint statement, federal agencies, including the FTC, pledged to monitor AI systems and enforce laws against unfair or deceptive practices, citing risks such as fraud, discrimination, and lack of transparency.
While the current administration has reportedly set aside enforcement actions from its predecessor, the FTC continued some actions and, in April 2025, approved a final order requiring a firm to pay $1 million for allegedly misrepresenting the capabilities of its AI products.
Whether Hertz’s use of AI scanning technology rises to that level remains unclear, and the FTC indicated it would not publicly confirm or deny any investigation.
Hertz did not respond to a request for comment from The Dallas Express.
