Rental car firms in California can expect a financial whack if they try to snoop electronically on where their vehicles are being driven.
California Attorney General Bill Lockyer recently announced a succesful lawsuit against Fox Rent A Car, Inc. for using Global Positioning Systems installed in their cars to check their whereabouts. Customers found to have driven beyond a three-state limit were hit with extra rental and mileage charges.
Lockyer said Fox violated a state law restricting the use of tracking devices in rental cars and another law against assessing "liquidated damages penalties" such as the excess fees that have no connection to any potential damages from driving beyond the limit.
He said Fox would pay fines of $200,000 and customer restitution of $500,000 and will be barred from using tracking devices in their vehicles to monitor driving.