The Senate Committee on Commerce, Science and Transportation has approved the Household Goods Shipping Consumer Protection Act, a bipartisan effort aimed at curbing fraud in the residential moving industry.
The legislation, championed by D.C. Del. Eleanor Holmes Norton (D) and Sen. Tammy Duckworth (D-Ill.), passed without amendments and will now move forward in the legislative process.
The bill, co-led by Rep. Mike Ezell (R-Miss.) and Sen. Deb Fischer (R-Neb.), seeks to empower the Federal Motor Carrier Safety Administration (FMCSA) with stronger enforcement tools to protect consumers. Lawmakers say the legislation is designed to address a surge in schemes involving companies that collect upfront payments and then hold customers’ belongings hostage unless additional fees are paid.
Many of the fraudulent businesses operate under fake online reviews, only to shut down and reopen under new FMCSA licenses once complaints pile up.
Norton, who introduced the House companion bill in January alongside Ezell, called the committee vote “a significant step in the right direction for consumer rights.”
“Combating illegitimate shipping companies is like a game of whack-a-mole. As soon as one business is shut down, another pops up,” Norton said. “This bill would protect consumers by clarifying FMCSA’s authority to assess civil penalties for violations of commercial regulations, and crucially, withholding registration from applicants who fail to verify they are legitimate businesses.”
The legislation has received backing from a range of industry and safety groups, including the Transportation Intermediaries Association, the American Trucking Associations’ Moving & Storage Conference, the Owner-Operator Independent Driver Association, the National Association of Small Trucking Companies, the Commercial Vehicle Safety Alliance, the Institute for Safer Trucking, and Road Safe America.
Duckworth added that the bill reflects the need for laws to evolve as scammers develop new methods of exploitation.
“Bad actors are constantly developing new ways to defraud hardworking Americans, so it’s critical we keep our laws up to speed,” Duckworth said. “I’m proud this bipartisan bill is now one step closer to helping ensure FMCSA has the tools it needs to shield American consumers from theft. Moving is stressful enough — you shouldn’t also have to worry about whether your movers are trying to steal your money and belongings.”
