The Italian Competition Authority (Autorità Garante della Concorrenza e del Mercato, AGCM) has imposed a €5 million fine on ALD Automotive, a global player in the long-term vehicle rental market, for engaging in misleading commercial practices concerning the management of charges applied to customers for vehicle damage during rental periods.
According to the AGCM, ALD provided incomplete, ambiguous, and fragmented information to consumers regarding the terms and conditions of an optional, paid service designed to limit customer liability for vehicle damage. The service, purchased by almost all customers, was meant to ensure that consumers would pay only the agreed deductible in the event of damage. However, ALD failed to clearly inform customers that they were required to promptly report each instance of damage through the company’s online portal, a requirement that effectively hindered the use of the service as advertised.
The investigation further revealed that consumers were not adequately informed about the criteria ALD used to distinguish between damage caused by normal wear and tear—costs that are not charged to customers—and other types of damage, which would be charged unless reported immediately when they occurred.
The Authority also deemed aggressive ALD’s practice of charging customers for repairs of minor or non-visible damage—identified only during the final technical inspection upon vehicle return. Because such damage was often not detectable to the naked eye, consumers were unable to report it in advance and, as a result, were denied the benefit of the purchased liability limitation.
The AGCM concluded that these practices misled consumers and compromised their ability to make informed choices, constituting an unfair commercial practice under Italian consumer protection law.
