Lawmakers intro bill giving FMCSA more power to punish freight fraud
New legislation promises to empower the Federal Motor Carrier Safety Administration (FMCSA) to take enforcement action against fraudsters within the transportation industry.
On January 30, U.S. Senator Deb Fischer (R-Neb.) introduced the Household Goods Shipping Consumer Protection Act, with co-sponsor Senator Tammy Duckworth (D-Ill.).
In response to an uptick in freight fraud throughout the transportation industry (particularly in the household goods moving sector), the bill would allow FMCSA to administer civil penalties to punish bad actors and to deter would-be fraudsters. The bill would also requires brokers, freight forwarders, and carriers to provide FMCSA with a valid address to reduce fraud risk.
Fischer’s office outlined specific provisions of the new bill:
- Restoration of FMCSA’s Authority: Restores FMCSA’s ability to impose civil penalties against unauthorized brokers and other fraudulent entities, enabling the agency to act swiftly against bad actors.
- Stronger Regulation Enforcement: Mandates that companies operating in the household goods sector must maintain a legitimate principal place of business, ensuring that companies cannot use PO Boxes or non-physical address to skirt regulations.
- Identifying Fraudulent Practices: Directs FMCSA to analyze trend and commonalities among companies apply for shipping authority to identify potentially fraudulent operations before they can cause harm.
- State Enforcement and Consumer Protection: Allows states to use federal funds to enforce consumer protection laws related to household goods transportations, providing a more comprehensive and effective regulatory structure.
An identical version of the bill will be introduced in the House by U.S. Representatives Eleanor Holmes Norton (DC-AL) and Mike Ezell (MS-04)
“We cannot allow bad actors in the shipping and moving industry to violate consumer trust and harm our nation’s supply chain. 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,” said Senator Fischer.
“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,” said Senator Duckworth. “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 alongside Senator Fischer to help ensure FMCSA has the tools it needs to shield American consumers from these thieves.”
The bill is endorsed by transportation industry trade groups including the American Trucking Associations, the Transportation Intermediaries Association, and the Owner-Operator Independent Drivers Association (OOIDA).
“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 OOIDA President Todd Spencer. “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.”