[Congressional Record Volume 170, Number 89 (Wednesday, May 22, 2024)]
[Extensions of Remarks]
[Pages E549-E550]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  INTRODUCTION OF THE HOUSEHOLD GOODS SHIPPING CONSUMER PROTECTION ACT

                                 ______
                                 

                       HON. ELEANOR HOLMES NORTON

                      of the district of columbia

                    in the house of representatives

                        Wednesday, May 22, 2024

  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

[[Page E550]]

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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