Zipcar fined after allowing customers rent vehicles with open, unrepaired recalls

NEW YORK (AP) — Zipcar has been slapped with a $300,000 fine after U.S. regulators found that the car-sharing company allowed customers to rent vehicles that had open recalls, violating federal motor safety law.

The civil penalty is a part of a consent order that the National Highway Traffic and Safety Administration announced Monday. It marks NHTSA's first enforcement action against a rental car company over recalls, the agency said.

“Vehicles with open, unrepaired recalls pose a safety risk to everyone on the road," NHTSA Acting Administrator Ann Carlson said in a statement. "The agency will continue to use the full scope of its enforcement authorities to protect the public from safety defects in their personal vehicles or in a vehicle they rent.”

Under the consent order, half of the $300,000 penalty is set to be paid up front — while the other $150,000 will be deferred and could become payable in the event of future violations, NHTSA said. In addition, the company is required to submit an audit of all Zipcar vehicles with recalls open at any time within 150 days after the consent order and provide updates to employee training materials, among other compliance reviews.