Italian Watchdog Fines ALD Automotive €5 Million Over Unfair Long-Term Rental Practices

Key Takeaways

• Fine Imposed: Italy’s competition authority (AGCM) fined ALD Automotive Italia €5 million ($5.4 million) for unfair commercial practices in long-term rental contracts.
• Misleading Liability Coverage: Customers were misled into believing they had comprehensive protection, while hidden conditions required damage reports within three days or before vehicle return.
• Opaque Criteria: ALD failed to provide renters with the State-of-Use Guide, leaving them unaware of what counted as normal wear versus chargeable damage.
• Financial Impact: From 2022–2024, the service generated €10–15 million in revenue, including €1–1.5 million in charges to 5,000–10,000 customers for unreported damages.
• Corrective Steps and Obligations: The fine was reduced from €7 million due to ALD’s recent contractual updates, but the company must prove compliance within 60 days and may still face appeals.

Deep Dive

Italy’s competition authority has slapped ALD Automotive Italia with a €5 million fine ($5.4 million) for misleading customers of its long-term rental service. At the heart of the case is an optional liability-limitation package, sold to almost all ALD clients, that was pitched as offering peace of mind but came with hidden strings attached.

The Italian Competition Authority (AGCM) said ALD failed to clearly spell out that renters had to report any damage within three days, or before returning the vehicle, for the protection to apply. Customers were led to believe they had broad coverage, akin to full insurance, only to face hefty charges for unreported scratches, dents, or even damage invisible to the naked eye but later flagged by technical inspections.

Investigators also criticized ALD for withholding the State-of-Use Guide, the document that defines what counts as wear-and-tear versus billable damage. Without it, renters had no way of knowing the rules until after the fact. AGCM branded the practice unfair and aggressive, noting that many customers were blindsided with costs they thought were capped.

The watchdog calculated that between 2022 and 2024, ALD collected €10–15 million in fees for the service, with €1–1.5 million billed to 5,000–10,000 customers for unreported damages. While the fine was reduced from an initial €7 million to €5 million in recognition of recent corrective steps, such as clearer contract terms and updated guidance, AGCM said gaps remain. ALD, now merged with LeasePlan Italia under the Ayvens brand, has 60 days to prove it has fixed the problem, and 30 days to pay the fine. Appeals are still possible.

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