Hertz says some vehicles have video cameras installed

Hertz, the nation's second-largest rental car company, has confirmed to CBS News that it has installed video cameras that face the driver inside vehicles in a portion of its fleet. The cameras are "inoperable" for now, the company says, and are part of an upgrade to the company's "NeverLost" navigation system that began to be installed last Fall.

The cameras are now in one out of every eight of Hertz's half a million vehicles. There are growing privacy concerns and comments on social media about the development.

Hertz told CBS News the units "aren't functional" because the company does not yet "have the technology to support an in-car video conference service," and that when it does, the camera function "could only be activated by renters at their sole discretion."

Spokesman Rich Broome said the controversy began for them on Friday and "we are only aware of three customers, so far, who've complained about the cameras. I don't believe anyone has asked for a different car."

When asked if Hertz underestimated the potential for controversy, Broome said, "we don't want anyone concerned that we're invading their privacy...We did not believe there was any cause for concern. I don't know we were thinking that anybody would have thought we would be recording them."

He also said that as consumers "are becoming more familiar with and comfortable with video conferencing... we were looking forward, and it's something customers might be interested in down the road."