A Proposed Law Targets Freight Fraud

New Bill Aims to Stop Freight Fraud in Household Moving

A bipartisan bill has been introduced in Congress to fight freight fraud in household moving. Senator Deb Fischer (R-Neb.) and Senator Tammy Duckworth (D-Ill.) are leading the effort in the Senate. Representatives Eleanor Holmes Norton (DC-AL) and Mike Ezell (MS-04) will introduce the same bill in the House.

The proposed law, called the Household Goods Shipping Consumer Protection Act, gives the Federal Motor Carrier Safety Administration (FMCSA) more power to stop fraud in the moving industry. If passed, it will help protect consumers and honest businesses from scams.

Freight Fraud: A Growing Problem

Many moving companies operate legally, but some do not. Fraudulent movers often trick customers with hidden fees or refuse to deliver belongings until they receive extra payments. Others use fake addresses or unregistered brokers to avoid legal consequences.

For years, trucking businesses and industry groups have asked the U.S. Department of Transportation (DOT) to crack down on fraud. However, a lack of enforcement power has allowed bad actors to continue operating. This bill aims to close those gaps and hold scammers accountable.

Key Changes in the Proposed Law

The Household Goods Shipping Consumer Protection Act would make several changes to federal law. If passed, it will:

• Give FMCSA More Enforcement Power – The agency will have the authority to issue civil penalties against unauthorized brokers and fraudulent companies.
• Require a Physical Business Address – Moving companies must have a real, physical location instead of using PO boxes or fake addresses.
• Improve Fraud Detection – FMCSA will review new company applications to identify fraud before it happens.
• Expand State Enforcement – States will be able to use federal grant funds to enforce consumer protection laws for household moving.
• Allow States to Keep Penalty Fees – When states issue fines to fraudulent companies, they will be able to keep the money instead of sending it to the federal government.

Bipartisan and Industry Support

Both Democrats and Republicans support this bill. Senator Fischer said the new law will help hold scammers accountable. Senator Duckworth added that fraud tactics are evolving, and laws need to keep up.

Industry groups are also backing the legislation. Todd Spencer, President of the Owner-Operator Independent Drivers Association (OOIDA), said fraud has hurt small trucking businesses. He urged Congress to pass the bill quickly.

Chris Burroughs, President of the Transportation Intermediaries Association (TIA), called fraud a major problem for the supply chain. He believes the bill will help restore trust in the freight industry.

The American Trucking Associations (ATA) also supports the bill. Their leaders say it will help consumers feel safer when hiring movers. They believe stronger enforcement will protect honest businesses and help the economy.

What’s Next?

Now that the bill has been introduced, Congress will review and debate it in committee meetings. Supporters hope it will pass quickly so that FMCSA can start cracking down on fraud.

If signed into law, the bill will make household moving safer for consumers. It will also help honest truckers and businesses compete in a fair market.