California household movers face stricter licensing requirements and potential penalties

The Bureau of Household Goods and Services Advisory Group convened on November 7, 2019, to discuss critical updates regarding household mover regulations in California. The meeting primarily focused on an industry advisory aimed at unpermitted movers, emphasizing the importance of compliance with state licensing requirements.

The advisory, identified as Industry Advisory 19-03, targets movers who may not be aware of the necessity to obtain permits. It specifically addresses various sectors, including restoration companies, brokers, interstate movers, and storage container services, commonly referred to as "pods." The advisory outlines the potential penalties for operating without a permit, highlighting that all movers must adhere to the Business and Professions Code 19,235, which mandates that no household goods can be transported for compensation without proper licensing.

During the meeting, participants discussed the rise in unpermitted moving activities, particularly those involving container services that allow consumers to load their belongings themselves. The Bureau has noted an increase in these operations, which fall under the jurisdiction of the household movers act. Enforcement actions will be pursued against companies that fail to comply with the licensing requirements.

Key points raised included the need for consumer protection, particularly regarding valuation limits for goods in transit. The advisory stresses that unpermitted movers may expose consumers to significant financial risks, as they are not bound by the same valuation standards as permitted movers. For instance, while permitted movers must provide a minimum valuation of 60 cents per pound per article, unpermitted movers may offer only 10 cents per pound, potentially leaving consumers at a disadvantage.

The meeting concluded with a reminder of the civil penalties that unpermitted movers face, including the inability to enforce payment for services rendered. Consumers who utilize unpermitted services can seek legal recourse to recover any payments made, even if the services were provided.

Overall, the advisory aims to educate both movers and consumers about the importance of compliance with state regulations, ensuring a safer and more reliable moving industry in California. The Bureau plans to continue its outreach efforts and may hold workshops to further clarify these regulations in the future.