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 ensure that the Federal Motor Carrier Safety Administration (FMCSA) has the tools to protect consumers from fraud in the interstate transportation of household goods. Last Congress, the House Committee on Transportation and Infrastructure passed this bill by a vote of 62-2. Representative Mike Ezell is co-leading this bill with me. Senators Deb Fischer and Tammy Duckworth are introducing the companion bill.

Specifically, this bill would clarify that FMCSA has the authority to assess civil penalties against fraudulent actors that hold consumers' personal goods hostage, allow FMCSA to leverage states' enforcement of 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.

FMCSA receives thousands of complaints every year from the victims of fraud related to 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 the authority to assess civil penalties for violations of commercial regulations, including unauthorized brokerage and failure to return household goods to consumers. This ruling reversed years of practice and enforcement by FMCSA. As a result of the ALJ's decision, FMCSA may not assess civil penalties for violations of commercial regulations. Instead, the Department of Justice must initiate an action in federal court, which limits enforcement action and leaves consumers to pay the price. This bill would clarify congressional intent and provide explicit authority for FMCSA to adjudicate and assess civil penalties for commercial regulations and registration requirements.

This bill would also provide explicit authority for 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. Scam 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, parking lot or business address unrelated to the registered entity. Allowing FMCSA to validate this business information up front will help prevent future fraud and abuse in the truck freight sector.

This bill would also permit states to use Motor Carrier Safety Assistance Program and High Priority Program funding to ensure compliance with federal regulations on household goods freight and consumer protection. It would also codify the existing practice of allowing states to retain the penalties and fines imposed in proceedings related to violations of household goods statutes and regulations. These provisions would support states in their efforts to protect consumers from predatory practices.

I urge my colleagues to support this bill.

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