Norton, Ezell, Fischer and Duckworth to Introduce Bipartisan, Bicameral Bill to Strengthen Consumer Protection Against Fraud Involving Residential Moving Companies
WASHINGTON, D.C. – Congresswoman Eleanor Holmes Norton (D-DC) and Congressman Mike Ezell (R-MS) announced they will reintroduce a bipartisan bill to equip the Federal Motor Carrier Safety Administration (FMCSA) with the necessary tools to protect consumers from fraud perpetrated by scammers in the interstate transportation of household goods. The bill was written to address a growing type of fraud involving entities that charge an up-front fee, pack and hold consumers’ household goods, then demand more funds to deliver or release the items. The companies involved have launched websites with fake 5-star reviews, and when negative reviews are submitted, the scammers simply close down the existing companies and open new ones, repeating the original scheme under a new FMCSA license. Last Congress, the House Committee on Transportation and Infrastructure passed the bill by a vote of 62-2. U.S. Senators Deb Fischer and Tammy Duckworth are introducing the Senate companion bill.
The bill has been endorsed by the Transportation Intermediaries Association (TIA), American Trucking Associations’ Moving & Storage Conference (ATA-MSC), Owner-Operator Independent Driver Association (OOIDA), the National Association of Small Trucking Companies (NASTC), Commercial Vehicle Safety Alliance (CVSA), Institute for Safer Trucking (IST) and Road Safe America.
“Shipping fraud is among the most frequent complaints FMCSA receives,” Norton said. “This bill would provide FMCSA with explicit authority to assess civil penalties for violations of commercial regulations, and crucially, to withhold registration from applicants failing to provide verification details demonstrating they intend to operate legitimate businesses. Americans moving across state lines need to be able to have confidence in FMCSA-licensed companies transporting their physical belongings, and I’m proud to introduce this bill with Rep. Ezell to strengthen protections, and I thank my colleagues, Senators Fischer and Duckworth for leading this bill in the senate.”
“The Household Goods Shipping Consumer Protection Act aims to tackle fraudulent practices in the moving and shipping industry that damage consumer trust and disrupt our national supply chain,” Congressman Ezell said. “By holding dishonest actors accountable, we’re not only safeguarding consumers but also supporting reputable businesses and their workforce. I’m proud to co-author this important legislation to combat fraud and strengthen order within our economy.”
“We cannot allow bad actors in the shipping and moving industry to violate consumer trust and harm our nation’s supply chain,” said Senator Fischer. “Our bipartisan, bicameral legislation will give the Federal Motor Carrier Safety Administration the tools they need to hold these thieves accountable. I look forward to working with my colleagues in both the House and the Senate to get our bill signed into law.”
“Bad actors are constantly developing new ways to defraud hardworking Americans, so it’s critical we keep our legislation up to speed so we can protect our constituents from the latest scamming techniques,” said Senator Duckworth. “Moving is stressful enough without worrying about whether your movers are actually scammers trying to steal your money and belongings. I’m proud to help introduce this bipartisan legislation to help ensure FMCSA has the tools it needs to shield American consumers from these thieves.”
“Fraud continues to wreak havoc on the supply chain and in turn, hurts consumers and the U.S. economy,” said Chris Burroughs, President and CEO of the Transportation Intermediaries Association (TIA). “We thank Congresswoman Norton and Congressman Ezell for re-introducing the Household Goods Shipping Consumer Protection Act in the 119th Congress. Re-introducing this bill shows their commitment to implementing strong anti-fraud laws, which could markedly reduce fraud in the supply chain, minimize financial losses to small business and restore integrity to the nation’s freight sector. This bill is good for the industry, consumers and the American economy,” stated Chris Burroughs, President and CEO of the Transportation Intermediaries Association (TIA).”
“When individuals and families begin the stressful process of relocating, the last thing they should have to worry about is being exploited by unscrupulous companies charging exorbitant rates and holding their household goods hostage,” said American Trucking Associations’ Senior Vice President of Legislative Affairs Henry Hanscom and Moving & Storage Conference Executive Director Dan Hilton. “We commend Representatives Eleanor Holmes Norton and Mike Ezell for taking action to help prevent consumers from becoming victims of moving fraud and protect the reputations of legitimate moving and storage companies and their hardworking employees. By creating additional tools to crack down on scammers, their legislation will help Americans have greater confidence that the moving professionals they entrust with their valuable possessions are experienced, honest, and reliable.”
“Freight fraud committed by criminals and scam artists has been devastating to many small business truckers simply trying to make a living in a tough freight market,” Todd Spencer, President of the Owner-Operator Independent Drivers Association said. “OOIDA and the 150,000 small-business truckers we represent applaud Representative Holmes Norton, Representative Ezell, Senator Fischer and Senator Duckworth, for their bipartisan and bicameral leadership to provide FMCSA better tools to root out fraudulent actors, which are also harmful to consumers and highway safety. Because of the broad industry support for these commonsense reforms, we hope this bipartisan legislation will move through the committee process without delay.”
“The National Association of Small Trucking Companies appreciates the reintroduction of the Household Goods Shipping Consumer Protection Act. In particular, we thank Representatives Norton and Ezell and Senator Fischer for their leadership on the challenge of freight fraud, an epidemic that continues to plague the trucking industry.” David Owen, President, National Association of Small Trucking Companies said. “NASTC heartily supports this legislation. It takes steps to ensure that fraudulent brokering by criminals and criminal enterprises gets caught and the fraudsters held accountable. This bill requires a tangible place of business in order to register, which should throw up barriers to many of the frauds who exploit the ability to constantly shift their online brokering schemes. NASTC looks forward to working with these lawmakers to move this bill forward in this Congress.”
Norton’s introductory statement follows.
Statement of Congresswoman Eleanor Holmes Norton on the Introduction of the Household Goods Shipping Consumer Protection Act
January 31, 2025
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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