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Small carriers and members press Congress to act on freight fraud; lawmakers point to household goods consumer protection bill
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Summary
Witnesses reported rising freight and broker fraud since the pandemic and urged passage of bills that would give FMCSA stronger enforcement tools and require brokers to maintain verifiable contact information.
At the House subcommittee hearing, witnesses described a surge in freight fraud and identity theft affecting brokers, carriers and drivers and urged Congress to provide FMCSA with stronger enforcement tools and clearer disclosure requirements.
Mr. Pew and other witnesses cited incidents where broker or carrier identities were stolen, loads were tendered fraudulently, and drivers delivered freight without pay. "We need to get [the household goods bill] passed because it'll require brokers to have a physical address," Mr. Pew said, arguing the change would help investigators and civil enforcement. He also urged improvements to the National Consumer Complaint Database so complaints are tracked and acted upon.
Ranking Member Norton earlier told the committee she had introduced a bipartisan Household Goods Shipping Consumer Protection Act with Representative Mike Ezell designed to clarify FMCSA authority over fraudulent brokers and to give the agency additional tools to stop consumer and carrier fraud. Several members said they would press for the bill's language or similar provisions during reauthorization.
Panelists recommended a combination of statutory fixes, increased interagency enforcement and better industry best practices to deter fraud. No formal action was taken at the hearing; members said they expect to consider legislative language to strengthen broker transparency and FMCSA enforcement in the reauthorization process.
