The worst part, for me at least, is I'm not even sure how you would sue Hertz for something like this. It's negligence resulting in false imprisonment, but not all false imprisonment tort statutes have negligence as a valid cause of action. There's also malicious prosecution and defamation, but that typically also requires intent, rather than just negligence or recklessness. I suppose that it could fall under the blanket "unfair business practices" tort, but the damages would probably be limited. In PA for example, you couldn't get more than $1,000 out of that claim.
This is an absurd set of factual circumstances, and there are almost no accountability structures in place to fight it. It's incredibly disheartening.