Auto Rental News
MenuMENU
SearchSEARCH

Advocacy Groups Petition FTC to Stop Enterprise From Renting Recalled Vehicles

The petition, filed by the Center for Auto Safety, Consumers for Auto Reliability and Safety, and Carol S. Houck, asks the FTC to stop Enterprise and its parent company from renting out unrepaired recalled vehicles to customers.

by Staff
August 11, 2010
3 min to read


Two automotive safety advocacy groups and the mother of two women killed in a traffic accident involving a recalled vehicle rented by Enterprise Rent-A-Car, petitioned the Federal Trade Commission Monday to stop Enterprise and its parent company from renting out unrepaired recalled vehicles to customers.

The petition was filed by the Center for Auto Safety (CAS), Consumers for Auto Reliability and Safety (CARS), and Carol S. Houck. Among other suggestions, the petition says Enterprise Rent-A-Car and Enterprise Holdings should adopt the following procedure on how to handle vehicle recalls: "...once Enterprise receives the official notice of the recall, the affected vehicles should be immediately parked until fixed. This is the same duty that new car dealers have been assigned by the federal Motor Vehicle Safety Act...and is appropriate for Enterprise under the circumstances." 

Ad Loading...

In 2004, Houck's daughters, Raechel and Jacqueline, rented a Chrysler PT Cruiser from Enterprise in California. The vehicle was recalled by the manufacturer for a power steering hose defect that was known to cause an underhood fire, but was never repaired.

The two women rented the vehicle and were unaware of the safety recall. They died in a head-on traffic collision with an 18-wheeler on the 101 north highway near King City, Calif., on Oct. 2, 2004.

A jury awarded their parents $15 million on June 9, 2010 in a lawsuit against Enterprise Rent A Car.

"Justice has not been served," Houck said of the verdict. "Justice is making sure this never happens to another family. That's why the FTC must grant this petition."

"Our petition asks ... the FTC to stop Enterprise from making claims suggesting that its rental vehicles are safe, such as in ads that use misleading words like 'well-maintained' and 'security and reliability' to describe their vehicles," said Clarence Ditlow, executive director of CAS.

Ad Loading...

"Not only is it deceptive for Enterprise to fail to disclose its practice of renting out recalled but unrepaired vehicles, it is deceptive of Enterprise to have such a practice in the first place. Only strong FTC enforcement action will stop Enterprise from renting unsafe vehicles to consumers and send a message to all rental car companies to park recalled cars until fixed," Ditlow said.

Enterprise Rent A Car reiterated on June 22, 2010, its procedures for handling manufacturers' vehicle recalls after the verdict in the Houck lawsuit was handed down.

"If and when manufacturers recommend that vehicle owners park or ground their vehicles, we promptly do so," said Greg Stubblefield, executive vice president and chief strategy officer for Enterprise. "However, we also believe there are times when recalled vehicles need to be grounded regardless."

"Given all we have learned, today we would ground the recalled PT Cruiser until repaired," Stubblefield said. "That is why we continue to work with our employees and automobile manufacturers on ways to improve our policies and procedures for handling recalls. 

"We share the Houcks' goal of preventing anything like this happening again," Stubblefield said. "Of course, nothing can change this heartbreaking situation for the Houck family and, again, we are truly sorry for their terrible loss."

Ad Loading...

To view the full petition, visit www.autosafety.org.

More Rental Operations

Back view of a remote driver in front of a screen delivering a car to a location.

Global Carsharing Fleet Projected to Reach 768,000 Vehicles By 2030

A new Berg Insight forecast outlines several business models driving the projected growth in public carsharing worldwide through 2029.

Read More →
green and blue bar graphs compare fleet sales June 2025 versus June 2026
Fleet Acquisitionby Martin RomjueJuly 8, 2026

Rental Car Fleet Sales Show Mid-Year Strength

June gains ensured rental fleets closed out the first half of 2026 in positive territory.

Read More →
Close up of a row of white CUVs in the Surprice Mobility fleet at the Milan airport.

Surprice Mobility Opens Corporate Rental Station at Milan Malpensa Airport

The Milan opening is part of Surprice Mobility's broader strategy to expand its corporate operations while increasing the use of technology across its network.

Read More →
Ad Loading...
Julian Gritsch with an MBA class in a classroom.

Brazilian Executive MBA Targets Growing Domestic Rental Car Industry

Rental car companies face a unique combination of challenges that are rarely addressed in traditional programs.

Read More →
Green Motion team with banner bearing Japanese flag.

Green Motion Expands Into Japan With Master Franchise Agreement

Japan's tourism industry, business travel market, and demand for vehicle rental services are reasons the country represents an important market for the company.

Read More →
ACRA Chairman Sharky Laguana on stage at the ICRS event in Grapevine, Texas.
Legal & Legislativeby Martin RomjueJune 24, 2026

ACRA Carrying Fuller Industry Load As AI and EVs Lurk In Future

The leading car rental professional business group details an active legislative, regulatory, and macro-trends agenda affecting car rental operators.

Read More →
Ad Loading...
Light blue horizontal bar graphs on a chart showing World Cup-related rental car booking trends.
Rental OperationsJune 23, 2026

World Cup Travel Data Shows Longer Car Rentals and More One-Ways

A recent analysis of FIFA bookings found varied demand patterns that influenced rental car pricing.

Read More →
Side view of ICRS speaker Sanchit Garg at podium in front of a floor lit red curtain
Rental Operationsby Martin RomjueJune 22, 2026

A Leveling Force: AI Morphs Into A Rental Car Profit-Seeker

Revenue managers can’t match the emerging AI tools gobbling lots of data that could counter the competitive race to the rate bottom.

Read More →
Photos of Martin Romjue and Denis Gjoni on opposite sides of large headline for the video.
Rental Operationsby Martin RomjueJune 17, 2026

Stop Losing Money On Rental Tolls

Regardless of your rental fleet size and structure, fleet managers, executives, and owners can gain valuable insights into an often-overlooked area of fleet operations.

Read More →
Ad Loading...
Richard Lowden gesturing on stage in front of a red curtain at the Gaylord Texan Resort near Dallas.
Rental Operationsby Martin RomjueJune 12, 2026

Rethink The Future To Avert A Race To The Bottom

Rental car operators heard a sobering industry message and a stern challenge at the close of the International Car Rental Show.

Read More →
Ad Loading...