California Bureau Investigates Rising Unlicensed Household Movers Amid Licensing Challenges

The Bureau of Household Goods and Services (BHGS) held a significant advisory council meeting on March 25, 2021, focusing on the enforcement of licensing regulations and the impact of criminal background checks on household mover applicants. This meeting highlighted the bureau's ongoing efforts to ensure compliance among businesses operating without proper licenses, which is crucial for consumer protection and industry integrity.

One of the key discussions centered on the bureau's authority to disconnect the telephone lines of unlicensed businesses. While this action, referred to as "telephone disconnects," has been temporarily suspended, it underscores the bureau's commitment to enforcing licensing requirements. The bureau has made substantial efforts to educate and assist these businesses, but when those efforts fail, they are prepared to take legal action.

The meeting also addressed the rigorous background checks conducted on household mover applicants. The bureau requires applicants to disclose any criminal history, which is verified through the Department of Justice. This process has become increasingly important, as the number of investigations into applicants has surged from just eight in the first year of the bureau's oversight to 70 in the previous fiscal year. This increase reflects the bureau's success in bringing unlicensed movers into compliance with licensing requirements.

Additionally, the council discussed internal case investigations, which often arise from consumer complaints. These investigations can reveal multiple unlicensed operations linked to a single complaint, leading to further scrutiny and enforcement actions. Although the number of investigations dipped during the pandemic, they have since rebounded, with the bureau on track to meet pre-pandemic levels.

In terms of enforcement, the bureau reported issuing 227 citations this fiscal year, indicating a proactive approach to maintaining industry standards. The discussions during the meeting emphasized the importance of these enforcement actions in protecting consumers and ensuring that all household movers operate within the legal framework.

Overall, the advisory council meeting highlighted the bureau's dedication to compliance and consumer safety, as well as the challenges posed by unlicensed operations in the household goods and services sector. As the bureau continues to navigate these issues, the outcomes of their investigations and enforcement actions will be closely monitored by both industry stakeholders and the public.