WASHINGTON — The Owner-Operator Independent Drivers Association (OOIDA) is backing legislation that fights an issue that it says has been “devastating” to those it affects most — small business truckers.
The bipartisan Household Goods Shipping Consumer Protection Act, legislation introduced by Congresswoman Eleanor Holmes Norton (D-DC) and Congressman Mike Ezell (R-Miss.) to enhance the Federal Motor Carrier Safety Administration’s (FMCSA) ability to crack down on freight fraud.
According to a release lauding the legislation, motor carriers are victimized through unpaid claims, unpaid loads, double brokered loads, or load phishing schemes on a daily basis. This costs the trucking industry over $800 million annually.
“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 Representative Holmes Norton and Representative Ezell for their bipartisan 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 Transportation and Infrastructure Committee without delay.”
“FMCSA receives thousands of complaints every year from Americans who are the victims of fraud in the shipment of household goods by licensed entities,” 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.”
Ezell said the bill would also protect those who are trustworthy companies.
“The Household Goods Shipping Consumer Protection Act works to address illegal practices in the shipping and moving industry that ultimately undermine consumer trust and harm our nation’s supply chain,” he said. “Holding these fraudulent actors in the transportation sector accountable will not only protect individuals but also benefit trustworthy companies and their employees. I am glad to co-author this critical initiative to stop fraud and establish greater law and order in 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, enables bad actors to operate with impunity, and forces out drivers who want to build sustainable trucking careers.
How the Household Goods Shipping Consumer Protection Act helps is that it 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.
The bill has been endorsed by the Transportation Intermediaries Association (TIA), American Trucking Associations’ Moving & Storage Conference (ATA-MSC), Owner-Operator Independent Driver Association (OOIDA), the National Association of Small Trucking Companies (NASTC), Commercial Vehicle Safety Alliance (CVSA), Institute for Safer Trucking (IST) and Road Safe America.
Bruce Guthrie is an award-winning journalist who has lived in three states including Arkansas, Missouri and Georgia. During his nearly 20-year career, Bruce has served as managing editor and sports editor for numerous publications. He and his wife, Dana, who is also a journalist, are based in Carrollton, Georgia.
