U.S. regulators found that car-sharing company Zipcar violated federal auto safety laws by allowing customers to rent vehicles that had been subject to public recalls, and the company was fined $300,000.
The civil penalties are part of a consent decree announced Monday by the National Highway Traffic and Safety Administration. This marks the first time NHTSA has taken enforcement action against a rental car company over a recall, the agency said.
“Open, unrepaired recalled vehicles pose a safety risk to everyone on the road,” NHTSA Acting Administrator Ann Carlson said in a statement. “The agency will continue to make full use of its enforcement agencies to protect The public is protected from safety defects in their personal or rental vehicles.”
NHTSA said that under the consent order, half of the $300,000 fine will be paid upfront, while the other $150,000 will be deferred and may be paid in the event of future violations. Additionally, the company must submit an audit of all Zipcar vehicles being recalled at any time within 150 days of the consent order and provide updates to employee training materials and other compliance reviews.
Zipcar agreed to the consent decree.The company also said the agency has made several improvements to recall policies and procedures since 2018, according to NHSTA Investigate after learning that Zipcar had leased at least one recalled 2017 Ford Transit vehicle and had not had it repaired.
The consent order issued Monday states that based on its investigation, NHSTA determined that “certain unrepaired recalled vehicles” were leased through Zipcar in 2017 and 2018.
“At Zipcar, we prioritize the safety of our members and take manufacturer recalls very seriously,” the company said in a statement, adding that the NHSTA agreement covers “a recall in 2017 in which (Zipcar) 12,000 vehicles worldwide Less than 50 vehicles in the fleet were found to have violations.”
Zipcar, a subsidiary of Avis Budget Group, rents vehicles by the hour or day.
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