Hertz faces boycott over AI scanners that can slap $400 fines in minutes
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Hertz is facing a wave of online backlash. Critics are taking aim at the rental company after multiple customers say they were billed hundreds of dollars for minor damage flagged by new AI inspection scanning systems.
On Reddit and Facebook, car renters are now calling for a boycott, accusing the rental giant of using AI to detect trivial damage and charge steep fees — all while making it difficult to speak with a live agent. 'I'm just not comfortable with the new technology that can flag dirt or something that can be rubbed off as damage,' A customer posted on Reddit. Another Reddit user wrote: 'The flagging is half of the problem. The other problem is Hertz using AI to file the claim. What about traditional smaller-than-the-size-of-a-golf-ball dents or bill-size scratches? I can't even speak to a live agent.'
This week, the company confirmed to DailyMail.com it had charged a driver $440 for a one-inch scratch on a wheel. The scuff, commonly caused when a driver brushes a curb while parallel parking, was flagged by the scanner. The bill included $250 for the damage, $125 for processing, and a $65 administrative fee. Another driver claimed they got a $195 fee for a tiny dent when returning a Toyota Corolla. Each driver's experience is part of a larger tech rollout at Hertz, which recently partnered with UVeye , a startup that builds high-speed automated vehicle inspection systems.
Renters drive their cars through the scanners twice: once when they pick up the vehicle, and again when it's returned. Drivers will receive a copy of previously-scanned damage, the company confirmed to DailyMail.com. Hertz wants to use the scanners at 100 rental locations by the end of the year. In April, the rental firm told DailyMail.com that it was rolling out the tech to enhance vehicle safety, not charge customers for minor cosmetic damage .
The company said its policy hasn't changed, despite the $440 and $195 charges. It says most drivers who have used the UVeye scanners haven't received a charge. 'Over 97 percent of cars scanned with this technology have not detected any billable damage, proving a vast majority of rentals are incident-free,' a spokesperson for the company said. 'Vehicle damage has long been a common pain point across the car rental industry for customers and companies alike.
'At Hertz, we're using this technology to address this friction head-on and our goal is to always improve the customer experience while ensuring customers are not charged for damages they did not cause and by bringing greater transparency, precision, and speed to the process when they do.' In April, the company also told DailyMail.com that the systems will ensure their customers always receive safe cars. UVeye's scanners can more accurately assess underbody damage and tire tread degradation than human inspectors.
But independent analysts worry the tech solution isn't inspiring a ton of human trust. 'A line is crossed when AI applications become overly aggressive and prioritize efficiency over customer fairness and satisfaction,' David Linthicum, an AI analyst, previously told DailyMail.com. 'Customers value fairness and human interaction.' Hertz declined to comment on this article. Instead, the company pointed to its loss damage waiver, which typically costs between $20 and $30 per rental day, as a way to avoid surprising fees.
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