Introduction of the Household Goods Shipping Consumer Protection Act

Floor Speech

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Ms. NORTON. Mr. Speaker, today, I introduce the Household Goods Shipping Consumer Protection Act. This bill would give the Federal Motor Carrier Safety Administration (FMCSA) more authority to protect consumers from fraud in the interstate transportation of household goods. Specifically, this bill would give FMCSA the authority to assess civil penalties against unregistered shippers and against entities that hold consumers' personal goods hostage, give FMCSA the express authority to reimburse states for enforcing federal consumer protection laws related to the transportation of household goods and establish requirements to ensure that motor carriers, brokers and freight forwarders that seek registration are operating legitimate businesses. Representative Mike Ezell is co-leading this bill with me.

FMCSA receives thousands of complaints every year from Americans who are the victims of fraud in the shipment of household goods. Fraudsters have launched moving companies with fake 5-star online reviews to draw in customers, intending to overcharge customers or to hold their personal goods hostage until an additional fee is paid. After receiving negative reviews, fraudsters open a new moving company under a new name and a new FMCSA license. FMCSA lacks the authority to prevent and punish these types of fraud.

In 2019, a Department of Transportation Administrative Law Judge (ALJ) ruled that FMCSA lacks authority to assess civil penalties for violations of commercial regulations and registration requirements, including unauthorized brokerage and for failure to return household goods to consumers. Under current law, as interpreted by the ALJ's decision and final agency order, FMCSA may not assess civil penalties for violations of commercial regulations. Instead, the Department of Justice must initiate an action in federal court. This bill would reverse the ALJ's decision and provide explicit authority for FMCSA to adjudicate and assess civil penalties for unfair business practices and consumer protection violations, as well as give FMCSA authority to enforce roadway safety regulations against fraudsters.

This bill would also provide explicit authority to FMCSA to withhold registration from any applicant that fails to provide a valid principal place of business or disclose common ownership with any other registered entities at the time of registration. Household goods carriers, brokers and freight forwarders have registered with addresses where no legitimate operations take place, often designating their official address as a retail package store, vacant parking lot or business address unrelated to the registered entity. FMCSA already requires motor carriers to designate a principal place of business and disclose common ownership. However, FMCSA may only take enforcement action after the entity is already registered and refuses to cooperate with investigations at the designated address.

This bill would also permit states to use Motor Carrier Safety Assistance Program and High Priority program funding to conduct commercial regulatory and consumer protection standard reviews and enforcement actions against household goods motor carriers, brokers and freight forwarders. It would also clarify that states may retain the penalties and fines imposed in proceedings relating to violations of household goods statutes and regulations. These provisions would support states in their efforts to protect the American people from predatory practices.

I urge my colleagues to support this bill.

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