The company gave consumers incomplete and unclear information about the terms of the paid optional service intended to limit liability for vehicle damage in long-term rentals

The Italian Competition Authority has imposed a €5 million fine on ALD, a global player in the long-term car rental market, for an unfair commercial practice in the handling of customer charges for vehicle damage sustained during the rental period. In particular, at both the pre-contractual and contractual stage, the company gave consumers incomplete and unclear information about the nature, key features and terms of the paid optional service designed to limit liability for vehicle damage. This service, purchased by the vast majority of customers, was intended to limit consumers’ liability to the agreed deductible in the event of damage to the rental vehicle. However, the company failed to clarify that each incident had to be promptly reported through the ALD portal, preventing customers from fully benefiting from the service they had paid for.

Moreover, the investigation revealed that consumers were not adequately informed of the criteria used by the company to assess which damages fell outside normal wear and tear, and would therefore be charged to customers unless reported immediately (ALD only waives charges where the damage is considered “normal wear and tear”). Lastly, the Authority considered it aggressive to charge customers for repair costs of damages identified only at drop-off, following the technical inspection, since such damages were minor or not readily visible. These damages, unreported before drop-off precisely because they were difficult to detect, left consumers unable to benefit from the liability protection they had paid for, as a result of the company’s conduct.

Rome, 9 October 2025

Text of the decision