The owners of several car rental companies have sued the U.S. Consumer Product Safety Commission over the agency’s decision to require them to stop offering a car rental service to their customers.
Car rental companies were already prohibited from selling cars to people who have not qualified for a government-approved car loan program known as the federal car loan.
In December, the commission announced it would reclassify vehicles with the mandatory emissions monitoring system as junk cars, which means they cannot be leased by people who are not qualified to purchase a car.
The lawsuit argues that the decision violated the company’s freedom of association.
But the companies have fought the decision, arguing that it would allow unscrupulous operators to sell cars for cash without properly testing the vehicles to determine whether they meet the emissions standards required by the Clean Air Act.
Under the current rules, companies are prohibited from reselling their vehicles to people with federal loan programs, but those restrictions have not been used to restrict the sale of junk cars to car rental customers.