FIRST ON FOX: NEW YORK, N.Y. — As thousands of New York City residents prepare to hit the road to leave town for Memorial Day and summer travel, Democratic House candidate Jack Schlossberg is calling for an investigation into the way rental car companies, and potentially other industries, are using artificial intelligence.

Schlossberg, the only grandson of former President John F. Kennedy, is calling on the Federal Trade Commission to look into reports that Hertz began using AI last year to scan cars for rental damages, prompting warnings that consumers could end up being overcharged.

Schlossberg’s concerns stem in part from a report from The Drive where a Hertz customer at a location using the technology said he was notified minutes after dropping off his car that a 1-inch scuff on the driver’s side rear wheel resulted in a $440 charge that included $250 for the repair, $125 for processing and a $65 administrative fee.

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The report claims the situation for the customer got even worse when he tried to dispute the charges, and the company’s chatbot did not offer a way to reach a live representative, instead routing the issue for review at a later time.

Hertz has been partnering with Israel-based Uveye to deploy AI-scanning technology at airport locations over the past year and uses cameras and machine learning algorithms to scan returned cars in hopes of improving the "frequency, accuracy, and efficiency" of the process and phase out the need for manual inspections, Car & Driver reported.

Schlossberg is calling on the FTC to take four actions, adding that if elected to Congress in New York's 12th District he would move to enshrine them into federal law: conduct a full investigation into Hertz’s use of AI-driven damage detection, determine whether the practice constitutes an unfair or deceptive act under federal law, establish clear guidelines for the use of AI in consumer-facing financial decisions, and ensure that consumers have a transparent, fair and accessible process to dispute charges.

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"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."

The company added, "Since launching over one year ago, we’ve been listening, learning, and improving based on customer feedback — increasing communication, enhancing awareness at digital inspection locations, and strengthening our support channels. We’re committed to building upon the progress we’ve made to continue providing our customers with a more consistent rental experience and safer fleet." 

The FTC declined to comment.

Schlossberg is running as a Democrat in a crowded primary on June 23 to represent New York's 12th Congressional District in Congress, where the winner is widely believed to be in the driver's seat to win the general election in one of the most heavily Democratic districts in the country.