WASHINGTON — The Owner-Operator Independent Drivers Association (OOIDA) and other freight industry leaders are applauding a bill introduced on Thursday to help fight freight fraud.
Congresswoman Eleanor Holmes Norton and Congressman Mike Ezell will reintroduce a bipartisan bill to equip the Federal Motor Carrier Safety Administration (FMCSA) with the necessary tools to protect consumers from fraud perpetrated by scammers in the interstate transportation of household goods.
“Freight fraud committed by criminals and scam artists has been devastating to many small business truckers simply trying to make a living in a tough freight market,” said Todd Spencer, OOIDA president. “OOIDA and the 150,000 small-business truckers we represent applaud Senator Fischer, Senator Duckworth, Representative Holmes Norton and Representative Ezell for their bipartisan and bicameral leadership to provide FMCSA better tools to root out fraudulent actors, which are also harmful to consumers and highway safety. Because of the broad industry support for these commonsense reforms, we hope this bipartisan legislation will move through the committee process without delay.”
Rise in Freight Fraud
The bill was written to address a growing type of fraud involving entities that charge an up-front fee, pack and hold consumers’ household goods, then demand more funds to deliver or release the items. The companies involved have launched websites with fake 5-star reviews, and when negative reviews are submitted, the scammers simply close down the existing companies and open new ones, repeating the original scheme under a new FMCSA license. Last Congress, the House Committee on Transportation and Infrastructure passed the bill by a vote of 62-2. U.S. Senators Deb Fischer and Tammy Duckworth are introducing the Senate companion bill.
“Shipping fraud is among the most frequent complaints FMCSA receives,” Norton said. “This bill would provide FMCSA with explicit authority to assess civil penalties for violations of commercial regulations, and crucially, to withhold registration from applicants failing to provide verification details demonstrating they intend to operate legitimate businesses. Americans moving across state lines need to be able to have confidence in FMCSA-licensed companies transporting their physical belongings, and I’m proud to introduce this bill with Rep. Ezell to strengthen protections, and I thank my colleagues, Senators Fischer and Duckworth for leading this bill in the senate.”
The bill has been endorsed by the Transportation Intermediaries Association (TIA), American Trucking Associations’ Moving & Storage Conference (ATA-MSC), OOIDA, the National Association of Small Trucking Companies (NASTC), Commercial Vehicle Safety Alliance (CVSA), Institute for Safer Trucking (IST) and Road Safe America.
Protection for Consumers
“The Household Goods Shipping Consumer Protection Act aims to tackle fraudulent practices in the moving and shipping industry that damage consumer trust and disrupt our national supply chain,” Ezell said. “By holding dishonest actors accountable, we’re not only safeguarding consumers but also supporting reputable businesses and their workforce. I’m proud to co-author this important legislation to combat fraud and strengthen order within our economy.”
According to OOIDA, professional truckers have been telling the U.S. Department of Transportation for decades about inadequate broker regulations that are rarely, if ever, enforced. This has resulted in an inequitable economic environment for truckers, especially small-businesses who are victimized by unscrupulous brokers and other fraudulent entities. The current regulatory framework limits fraud enforcement. It enables bad actors to operate with impunity, and forces out drivers who want to build sustainable trucking careers.
Tools to Fight Freight Fraud
“We cannot allow bad actors in the shipping and moving industry to violate consumer trust and harm our nation’s supply chain,” Fischer said. “Our bipartisan, bicameral legislation will give the Federal Motor Carrier Safety Administration the tools they need to hold these thieves accountable. I look forward to working with my colleagues in both the House and the Senate to get our bill signed into law.”
OOIDA noted that the Household Goods Shipping Consumer Protection Act restores and codifies FMCSA’s authority to issue civil penalties against bad actors. The legislation also requires that brokers, freight forwarders, and carriers provide a valid business address to FMCSA in order to register for authority.
Scammers Held Accountable
“Bad actors are constantly developing new ways to defraud hardworking Americans, so it’s critical we keep our legislation up to speed so we can protect our constituents from the latest scamming techniques,” Duckworth said. “Moving is stressful enough without worrying about whether your movers are actually scammers trying to steal your money and belongings. I’m proud to help introduce this bipartisan legislation to help ensure FMCSA has the tools it needs to shield American consumers from these thieves.”
According to Chris Burroughs, TIA president and CEO, fraud continues to wreak havoc on the supply chain and in turn, hurts consumers and the U.S. economy.
“We thank Congresswoman Norton and Congressman Ezell for re-introducing the Household Goods Shipping Consumer Protection Act in the 119th Congress,” Burroughs said. “Re-introducing this bill shows their commitment to implementing strong anti-fraud laws, which could markedly reduce fraud in the supply chain, minimize financial losses to small business and restore integrity to the nation’s freight sector. This bill is good for the industry, consumers and the American economy.”
Easing Stress while Relocating
“When individuals and families begin the stressful process of relocating, the last thing they should have to worry about is being exploited by unscrupulous companies charging exorbitant rates and holding their household goods hostage,” said Henry Hanscom, ATA senior vice president of legislative affairs and Dan Hilton, ATA Moving & Storage Conference executive director. “We commend Representatives Eleanor Holmes Norton and Mike Ezell for taking action to help prevent consumers from becoming victims of moving fraud and protect the reputations of legitimate moving and storage companies and their hardworking employees. By creating additional tools to crack down on scammers, their legislation will help Americans have greater confidence that the moving professionals they entrust with their valuable possessions are experienced, honest, and reliable.”
Fraudsters Put on Notice
“The National Association of Small Trucking Companies appreciates the reintroduction of the Household Goods Shipping Consumer Protection Act, said David Owen, NASTC president. “In particular, we thank Representatives Norton and Ezell and Senator Fischer for their leadership on the challenge of freight fraud, an epidemic that continues to plague the trucking industry. NASTC heartily supports this legislation. It takes steps to ensure that fraudulent brokering by criminals and criminal enterprises gets caught and the fraudsters held accountable. This bill requires a tangible place of business in order to register, which should throw up barriers to many of the frauds who exploit the ability to constantly shift their online brokering schemes. NASTC looks forward to working with these lawmakers to move this bill forward in this Congress.”
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
