Zipcar to Pay $150,000 Fine for Allowing Rentals of Vehicles with Uncompleted Recalls
Auto Safety Regulators Impose Fine on Zipcar
Zipcar, the popular car-sharing service, has agreed to pay a $150,000 fine after an extensive government investigation revealed that it had been allowing customers to rent vehicles with uncompleted recalls. The National Highway Traffic Safety Administration (NHTSA) conducted a thorough investigation that lasted more than five years, ultimately resulting in this settlement.
Strict Terms for Zipcar
As part of the settlement, Zipcar is required to comply with specific terms set by the NHTSA. Failure to do so may result in an additional $150,000 fine. To ensure compliance, the agency has mandated that Zipcar submit an audit report detailing all the vehicles in its fleet that require recall repairs.
Audit Report of Zipcar Vehicles
One of the key requirements imposed on Zipcar is the submission of an audit report that encompasses all the vehicles in their fleet with uncompleted recall repairs. This report will provide crucial information to the NHTSA, enabling them to monitor the company’s progress in rectifying these issues.
Avis Budget Group Acquisition
It is worth noting that Avis Budget Group, a prominent car rental company, completed its acquisition of Zipcar in May. This acquisition adds an additional layer of responsibility for Avis Budget Group, as they will now play a crucial role in ensuring that Zipcar meets the terms of the settlement and addresses the outstanding recalls.
Ensuring consumer safety is of utmost importance, and the NHTSA’s enforcement action against Zipcar serves as a reminder to all car rental companies to prioritize vehicle safety and promptly address any recall issues. By complying with the terms set by the NHTSA, Zipcar can regain consumer trust and continue to provide a reliable and safe car-sharing service.
