Dollar Rent A Car 2011 Annual Report Download - page 24

Optional insurance products, including supplemental liability insurance, personal accident insurance and personal effects protection, we offer to
renters providing various insurance coverages in our domestic vehicle rental operations are regulated under state laws governing the licensing of such products.
Any changes in U.S. or foreign law that change our operating requirements with respect to optional insurance products could increase our costs of compliance
or make it uneconomical to offer such products, which would lead to a reduction in revenue. As a result of any changes in these laws or otherwise, if
customers decline to purchase supplemental liability insurance products through us, our results of operations could be materially adversely affected.
The U.S. Congress and other legislative and regulatory authorities in the U.S. and internationally have considered, and will likely continue to
consider, numerous measures related to climate change and greenhouse gas emissions. Should rules establishing limitations on greenhouse gas emissions or
rules imposing fees on entities deemed to be responsible for greenhouse gas emissions become effective, demand for car rental services could be affected, or our
vehicle costs and/or other costs could increase and our business could be adversely affected.
Laws in many jurisdictions limit the types of information that may be collected about individuals with whom we transact business, as well as how
we collect, retain and use the information that we are permitted to collect. The regulations applicable to privacy and data security are rapidly evolving, and
additional regulations in those areas, some of which is difficult for us to accommodate, are often proposed and occasionally adopted. Privacy and data
security regulations could have an adverse effect on our business through hindering our transaction processing activities and/or through the resulting cost of
complying with such regulations. Additionally, it is possible that we could face significant liability for failing to comply with such requirements or new
requirements as they are adopted.
We are subject to Payment Card Industry (“PCI”) data security standards, which require periodic audits by independent third parties to assess
compliance. PCI data security standards are a comprehensive set of requirements for enhancing payment account data security that was developed by the PCI
Security Standards Council comprised of the major credit card companies to help facilitate the broad adoption of consistent data security measures. Failure to
comply with the security requirements as identified in subsequent audits or to rectify a security issue may result in fines. Although unlikely, restrictions on
accepting payment cards may be imposed on companies that are not compliant and fail to timely remediate this non-compliance. While we have not been
subject to any fines or limitations on our ability to accept payment cards, there is no assurance that we will not incur fines or such limitations in the future.
Low Cost Structure
Our low cost structure has historically been one of our primary competitive advantages, as it has allowed us to offer low cost vehicle rentals and
drive rental transactions to our brands. Our inability to maintain our low cost structure could have an adverse affect on our results of operations and cash
flows. In an effort to maintain control over our operating expenses, we have implemented cost reduction initiatives. These initiatives include, among other
things, headcount reductions, business process re-engineering and internal reorganizations. We cannot provide assurance that we will be able to continue to
implement cost reduction initiatives to offset increasing fixed costs or, that we can do so without adversely affecting customer service levels and employee
morale, which could in turn adversely affect our results of operations and prospects.
Manufacturer Safety Recalls
Our vehicles may be subject to safety recalls by their manufacturers. Under certain circumstances, the recalls may cause us to attempt to retrieve
cars from customers and cause us to decide not to re-rent vehicles until we can arrange for the repairs described in the recalls to be completed. We could face
liability claims if recalls affect vehicles that we have already sold.
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