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I believe they can. When you check out the movie, it is scanned into the account you have set up with the rental place. When the movie is checked back in, it should be inspected and scanned in to the system again to indicate that you have returned it. At the time of check in the rip should be detected. I don't think you will be in trouble for that. Accidents happen, especially when hundreds of people are using that same DVD, and replacing that disc is relatively inexpensive. I think that damage is just one of the costs of doing business and is factored into the overall business plan. It would however, be considerate of anyone returning a damaged DVD to make the store aware of it so that DVD doesn't inadvertently get put back on the rack.

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Q: Can movie rental places tell if you have ripped a DVD?
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