A bipartisan bill aimed at combating scam freight brokers and trucking companies is garnering rare, widespread support across the industry. The Household Goods Shipping Consumer Protection Act, introduced by Democratic Congresswoman Eleanor Holmes Norton, who serves as Washington’s nonvoting delegate in the House, and Republican Representative Mike Ezell of Mississippi, specifically targets fraudulent practices in the household goods sector.

The bill proposes new, stricter registration requirements and enforcement measures that would apply to all freight carriers and brokers registering with the Federal Motor Carrier Safety Administration (FMCSA). Lewie Pugh, the executive vice president of the Owner-Operator Independent Drivers Association (OOIDA), emphasized the importance of this legislation. “We see in all this freight fraud that these fake brokers—and carriers as well—don’t actually have a physical address to be able to track them down,” Pugh told FreightWaves. “That’s why this legislation is so important for us.”

Currently, federal regulations require freight brokers to have “sufficient experience” and be “fit, willing, and able” to qualify and register with the FMCSA. The new legislation would add a requirement for brokers to designate a principal place of business. Additionally, brokers must disclose any relationships involving common ownership, management, control, or familial ties with other motor carriers, freight forwarders, or brokers, within three years preceding the application date for registration. This aims to increase transparency and accountability.

Federal officials would be granted authority to “withhold, suspend, amend, or revoke” any broker or carrier registration that fails to designate a valid principal place of business.

This measure is intended to prevent fraudulent entities from exploiting the system and evading detection.

The bill has received endorsements from several major industry organizations, including the American Trucking Associations’ Moving & Storage Conference, the Transportation Intermediaries Association (TIA), the National Association of Small Trucking Companies (NASTC), the Commercial Vehicle Safety Alliance, the Institute for Safer Trucking, and Road Safe America.

Anne Reinke, President and CEO of TIA, stressed the importance of effective legislation in combating fraud. “Combating fraud through effective legislation is imperative for the protection of brokers, motor carriers, shippers, consumers, and the integrity of the economic system,” she commented. “By implementing strong anti-fraud laws, governments can ensure a more stable and predictable economic environment, which is essential for sustainable growth and investment.”

David Owen, President of NASTC, highlighted that the bill’s requirement for a physical place of business could significantly disrupt fraudulent brokers who exploit online anonymity. “This bill requires a tangible place of business to register, which should help disrupt the many frauds who exploit the ability to run and constantly shift their brokering fraud schemes solely online,” Owen stated. “NASTC looks forward to working with these lawmakers to move this bill forward.”

In summary, the Household Goods Shipping Consumer Protection Act represents a significant step toward addressing and curbing fraudulent activities within the freight industry. By introducing stricter registration requirements and granting federal officials the power to enforce these measures, the bill aims to protect the interests of legitimate brokers, motor carriers, shippers, and consumers, while enhancing the overall integrity and stability of the economic system.