October 17, 2023: Zipcar, a car-sharing company, has been fined $300,000 by the National Highway Traffic Safety Administration (NHTSA) for allowing customers to rent vehicles with open recalls.
This is the first time the NHTSA has taken action against a rental car company for recalls.
The fine is part of a consent order between the NHTSA and Zipcar.
Under the order, Zipcar must submit an audit of all of its vehicles with open recalls and provide updates to its employee training materials.
Why it matters:
Vehicles with open recalls pose a safety risk to drivers and passengers.
Zipcar’s failure to ensure that its vehicles were repaired before being rented out put customers at risk.
The NHTSA’s fine warns other rental car companies that they must take recalls seriously.
Zipcar is required to comply with all of the terms of the consent order.
The NHTSA will continue to monitor Zipcar’s compliance and take further action if necessary.