It’s not very often the transportation industry gets a win on Capitol Hill. But it seems the conversation around fraud has gotten national attention as the Committee on Commerce, Science, and Transportation advanced the Household Goods Shipping Consumer Protection Act (S. 337).
Championed by Sens. Deb Fischer, R-Neb., and Tammy Duckworth, D-Ill., the bill seeks to restore and enhance the Federal Motor Carrier Safety Administration’s authority to address fraud and deceptive practices in freight transportation. Specifically, the bill grants FMCSA essential enforcement powers to:
- Assess civil penalties for unauthorized brokerage activity.
- Enforce the principal-place-of-business requirement.
- Examine commonalities among companies registering for operating authority.
“This bipartisan legislation gives FMCSA much-needed tools to protect consumers from fraud in the interstate shipment of goods,” said Transportation Intermediaries Association President and CEO Chris Burroughs in a news release. “With freight fraud costing the industry an estimated $35 billion annually, this bill equips the agency to protect consumers, businesses, and the supply chain. We thank Senators Fischer and Duckworth for their leadership in addressing this growing crisis and helping restore integrity to the freight network.”
The bill has been added to the Senate legislative calendar, marking a crucial first step in the legislative process. The journey to becoming a law has only just begun, but important steps have been taken to protect the industry and attempt to get a handle on fraud.
The other piece of legislation, which has been referred to the House Committee on the Judiciary, is the Combating Organized Retail Crime Act. The bill seeks to improve coordination and information sharing among federal, state and local law enforcement agencies while increasing penalties for those found guilty of committing fraud.
Currently, there is little victims of fraud can do. Motor carrier numbers under which fraud is committed should always be reported to the FMCSA. If cargo theft is involved, police reports should be filed. There are few long-term ramifications that fraudsters face at present. If the MC gets flagged as fraudulent, they disappear and come back with another.
It’s a hopeful sign that legislation is being introduced to help address the issue, especially since the Household Goods Shipping Consumer Protection Act has left committee – arguably one of the biggest hurdles in the entire process.
Meanwhile, even if these measures succeed, it will be an industrywide effort to get freight fraud under control.
Get the full edition of Check Call in your inbox every Tuesday by subscribing down below.
Supply Chain AI Symposium
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
The Old Post • Chicago, IL Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now