ALD Automotive hit with fine for ‘unfair’ practices in Italy

Core Viewpoint - The Italian Competition Authority has imposed a fine of €5 million ($5.8 million) on ALD Automotive for unfair commercial practices related to customer charges for vehicle damage during rental periods [1]. Group 1: Unfair Practices - ALD Automotive was found to provide incomplete and unclear information regarding an optional paid service that limits customer liability for vehicle damage to an agreed deductible amount [2]. - The company failed to adequately inform customers about the requirement to report each incident of damage promptly through its portal, which hindered customers from fully benefiting from the service they purchased [2][4]. - The authority criticized ALD Automotive for charging customers for repair costs of damages identified only at drop-off after a technical inspection, labeling this practice as 'aggressive' [3]. Group 2: Customer Impact - Customers were unable to benefit from the liability protection they had purchased due to the company's conduct, which included not sufficiently communicating the criteria for damages considered beyond normal wear and tear [3][4]. - The damages in question were often minor or not readily visible, making them difficult for customers to detect and report before vehicle drop-off [4]. Group 3: Company Background - ALD Automotive is a global long-term car leasing company and a subsidiary of the Société Générale Group since 2001, operating in 43 countries [1][4].