JFK’s Grandson Targets AI Technology Critics Say Gouges American Consumers

Clear Facts

• Jack Schlossberg, grandson of President John F. Kennedy, is calling for an FTC investigation into Hertz’s AI damage scanning technology
• Reports indicate Hertz customers are being charged hundreds of dollars for microscopic damage detected by AI that may be invisible to the human eye
• The Democratic congressional candidate warns AI is creating a “new frontier” of corporate overcharges that squeeze consumers without their consent

As Memorial Day weekend approaches and Americans prepare for summer travel, a Democratic House candidate in New York is raising alarms about how artificial intelligence may be used to overcharge rental car customers.

Jack Schlossberg, the only grandson of former President John F. Kennedy, is urging the Federal Trade Commission to investigate reports that Hertz began deploying AI scanning technology last year to detect vehicle damage. Critics warn the system could result in consumers being billed for wear and tear they cannot see and have limited ability to dispute.

“AI is being used in consumer-facing financial products, and Hertz is using AI to scan for microscopic damage on cars, invisible to the human eye, to charge people with fees for damage that they might not even be aware of, they have no opportunity to dispute, and the FTC should act here to investigate whether or not this constitutes an unfair trade practice,” Schlossberg said outside a midtown Manhattan Hertz location.

Schlossberg’s concerns follow a report from The Drive detailing how one Hertz customer was notified minutes after returning his vehicle that a 1-inch scuff on a rear wheel resulted in a $440 charge. The bill included $250 for repair, $125 for processing, and a $65 administrative fee.

The situation worsened when the customer attempted to dispute the charges through the company’s automated chatbot, which reportedly provided no access to a live representative and instead routed the complaint for later review.

Hertz has partnered with Israel-based Uveye to deploy AI scanning technology at airport locations over the past year. The system uses cameras and machine learning algorithms to scan returned vehicles, aiming to improve the “frequency, accuracy, and efficiency” of inspections while reducing reliance on manual assessments.

Schlossberg is calling on the FTC to take four specific actions: conduct a full investigation into Hertz’s AI-driven damage detection, determine whether the practice violates federal law prohibiting unfair or deceptive acts, establish clear guidelines for AI use in consumer-facing financial decisions, and ensure consumers have transparent and accessible processes to dispute charges. He pledged to codify these protections into federal law if elected to Congress.

“I think that this is a harbinger of what’s to come,” Schlossberg said.

“This is the new frontier of corporate fine print because AI is being used in ways we couldn’t imagine to price gouge, price fix, jack up prices on consumers without their consent, and basically just squeeze every nickel and dime out of consumers that they possibly can. And sometimes this can be unfair.”

Schlossberg’s campaign released a statement saying that “innovation must not come at the expense of the consumer” while criticizing New York City elected officials who “quietly work for the AI industry.”

A Hertz spokesperson pushed back against the candidate’s allegations, defending the technology as a way to bring “precision and transparency” to what has historically been an inconsistent manual process.

“Digital vehicle inspections bring precision and transparency to a historically manual and inconsistent process while also enhancing the safety, quality, and reliability of our fleet. They protect customers from being charged for damage that didn’t occur during their rental while enabling faster, fairer resolution when it does,” the spokesperson said.

The company stated it has been refining the system based on customer feedback over the past year, improving communication and strengthening support channels. A spokesperson also said customers are not charged for damages invisible to the human eye and receive comprehensive reports with before-and-after photos that can be reviewed with Customer Care representatives via email, phone, or chat.

Schlossberg told Fox News Digital his announcement is timed to help New Yorkers prepare for Memorial Day travel and be aware of potential issues when renting vehicles in an era of emerging AI technology.

The FTC declined to comment on the matter.

Schlossberg is running in a crowded Democratic primary on June 23 to represent New York’s 12th Congressional District. The winner is expected to have a clear path to victory in the general election in one of the most heavily Democratic districts in the nation.

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