Hertz 2008 Annual Report Download - page 64

ITEM 1A. RISK FACTORS (Continued)
We have made, and will continue to make, expenditures to comply with environmental laws and
regulations, including, among others, expenditures for the cleanup of contamination at or emanating
from, currently and formerly owned and leased properties, as well as contamination at other locations at
which our wastes have reportedly been identified. We cannot assure you that compliance with existing or
future environmental legislation and regulations will not require material expenditures by us or otherwise
have a material adverse effect on our consolidated financial position, results of operations or cash flows.
See ‘‘Item 1—Business—Governmental Regulation and Environmental Matters.’’
Changes in the U.S. and foreign legal and regulatory environment that impact our operations,
could disrupt our business or increase our expenses.
We are subject to a wide variety of laws and regulations in the United States and the other countries and
jurisdictions in which we operate, and changes in the level of government regulation of our business
have the potential to materially alter our business practices or our profitability. Depending on the
jurisdiction, those changes may come about through new legislation, the issuance of new laws and
regulations or changes in the interpretation of existing laws and regulations by a court, regulatory body
or governmental official. Sometimes those changes may have not just prospective but also retroactive
effect, which is particularly true when a change is made through reinterpretation of laws or regulations
that have been in effect for some time. Moreover, changes in regulation that may seem neutral on their
face may have either more or less impact on us than on our competitors, depending on the
circumstances.
The optional liability insurance policies and products providing insurance coverage in our domestic car
rental operations are conducted pursuant to limited licenses or exemptions under state laws governing
the licensing of insurance providers. In our international car rental operations, our offering of optional
products providing insurance coverage historically has not been regulated. Any changes in the law in
the United States or internationally that change our operating requirements with respect to insurance
could increase our costs of compliance or make it uneconomical to offer such products, which would
lead to a reduction in revenues. For instance, in the countries of the European Union, the regulatory
environment for insurance intermediaries is evolving, and we cannot assure you either that we will be
able to continue offering such coverage without substantial changes in our offering process or in the
terms of the coverage or that such changes, if required, would not render uneconomic our continued
offering of the coverage. Due to a change in law in Australia, we have discontinued sales of insurance
products there. See ‘‘Item 1—Business—Risk Management’’ for further discussion regarding how
changes in the regulation of insurance intermediaries may affect us internationally.
Laws in many countries and jurisdictions limit the types of information we may collect about individuals
with whom we deal or propose to deal, as well as how we collect, retain and use the information that we
are permitted to collect. In addition, the centralized nature of our information technology systems
requires the routine flow of information about customers and potential customers across national
borders, particularly into the United States. In the future, if we elect to outsource work that involves the
processing of such information, that information may flow into other countries, some of which do not
possess developed legal regimes relating to privacy and data security. If this flow of information were to
become illegal, or subject to onerous restrictions, our ability to serve our customers could be seriously
impaired for an extended period of time. Other changes in the regulation of customer privacy and data
security could likewise have a material adverse effect on our business. Privacy and data security are
rapidly evolving areas of regulation, and additional regulation in those areas, some of it potentially
difficult for us to accommodate, is frequently proposed and occasionally adopted. Thus, changes in the
worldwide legal and regulatory environment in the areas of customer privacy, data security and cross-
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