Spy In The Sky - car-rental firms use global positioning system to track rental cars - Brief Article

Kiplinger's Personal Finance Magazine, Sept, 2001 by Elizabeth Razzi

PRIVACY | Are you taking Big Brother along for a ride in your RENTAL CAR?

THERE'S another reason to read the horrible fine print of your rental-car agreement: It might warn you that you're driving with Big Brother on board.

That's what happened to a customer of an independent rental company in New Haven, Conn. The company slapped the driver with a $450 excessive-wear-and-tear charge when it discovered that he had exceeded the speed limit with his rental van. How did Acme Rent-a-Car know the customer had a lead foot? The global positioning system (GPS) installed in its rental vehicles reports back all kinds of information, including the speed the vehicle is traveling.

The Connecticut Department of Consumer Protection says that the company violated state law by failing to adequately notify customers of the purpose of the GPS. A hearing was scheduled for late August.

So, is your rental car phoning the home office with details of where you are and how fast you got there?

The largest car-rental chains, Avis and Hertz, say that although some of their cars have GPS, they do not use satellite systems to monitor customers' behavior. It's another story, though, at smaller companies. Independently owned franchisees of Thrifty Car Rental are among those using AirIQ, the same monitoring system that triggered the fuss in New Haven. AirIQ can squeal if you've broken the contract by taking a rental car on a cross-country jaunt or south of the border into Mexico. It can even disable a car's ignition if the car is stolen or abandoned.

Jason Logan, a spokesman for Thrifty, says the system is being used in several cities, but not to monitor speed. "We made a conscious decision across the board," he says. "We're not in the business of issuing `tickets.' It's used purely for recovery of vehicles and protection of assets."