[Congressional Record Volume 171, Number 21 (Friday, January 31, 2025)]
[Extensions of Remarks]
[Pages E80-E81]
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

                        Friday, January 31, 2025

  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

[[Page E81]]

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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