Support Household Goods Moving Reform
Moving fraud costs American consumers millions of dollars every year. FMCSA received 8,825 household goods complaints in 2022 alone, with hostage load complaints up 636% since 2019. The regulations meant to protect consumers have not kept pace.
The following 10 regulatory reforms address specific gaps in consumer protection. Review the proposals below and add your name to support their submission to FMCSA and the Surface Transportation Board.
The 10 Proposals
Binding Estimate Fee Limits
Define a limit on fees that carriers and brokers may charge for providing a binding estimate, consistent with the statutory requirement that such fees shall not be predatory.
Amend 49 CFR 371.401(b)
Volume Verification for Household Goods
Add regulations for determination and verification of volume when the consumer is charged a volume rate rather than a weight rate. Volume-based moves currently have zero regulatory controls, unlike weight-based moves which have federal verification rules.
Amend 49 CFR Part 375, Subpart E
Clear Accessorial and Bulky Item Charges
Require clear identification of charges for accessorial, bulky items and special services. Vague charges like 'misc. bulky' with a dollar amount do not comply with exact rate requirements.
Amend 49 CFR 371 and 375.501-505
Limit Attorney Fee Provisions
Carrier tariffs and bills of lading often contain provisions for payment of attorney fees by the consumer in the event of any dispute, discouraging good faith claims. Fee provisions should be limited to collection actions on delinquent accounts.
Amend STB/FMCSA rules
Prohibit Forum Selection Clauses
Bills of lading commonly require consumers to bring claims only in the moving company's home state. With most courts now offering virtual hearings, these clauses serve no legitimate purpose and should be prohibited or limited.
Amend STB/FMCSA rules
Prohibit Non-Disclosure Provisions
Some bills of lading contain provisions designed to limit consumer disclosure of transactions or events. These discourage good faith reviews and complaints to consumer agencies.
Amend STB/FMCSA rules
Notice of 180-Day Billing Dispute Deadline
Consumers are told about the 9-month property damage deadline but not the 180-day billing dispute deadline (49 USC 13710(a)(3)(B)). This critical deadline should be required in all household goods bills of lading.
Amend STB/FMCSA rules
Online Publication of Carrier Tariffs
HHG carriers should be required to post tariffs on their websites, as already required for water carriers since 2019. Consumers cannot verify rates without tariff access.
Amend 49 CFR Part 1310
Online Publication of Broker Carrier Lists
Brokers are required to provide a list of carriers they use (49 CFR 371.109) but rarely do. The carrier list should be prominently published on each broker website.
Amend 49 CFR 371.109
Immediate Suspension for Non-Compliance
Carriers and brokers that do not display required tariffs and carrier lists should be subject to immediate suspension of license until compliance is assured.
Amend 49 CFR Parts 365 and 371
Add Your Name
By signing, your name and support statement will be sent to the petition organizer for submission to FMCSA and the Surface Transportation Board. Your email is optional and only used if you choose to receive a copy.
New: STB Rulemaking Petition on Broker Fees
Court filings in Palm Beach County have revealed that Safe Ship Moving Services keeps up to 60% of line haul charges plus the entire binding estimate fee. The carrier who loads, drives, and delivers gets 40% or less. In general freight brokerage, broker fees are typically 10 to 20%.
Under 49 USC 13701(a), all HHG rates and practices must be “reasonable.” Under 49 USC 13702, all HHG transportation must be governed by tariffs. The Surface Transportation Board has rulemaking authority to define what is unreasonable. This petition asks the STB to act.
Cap Broker Compensation at Reasonable Levels
HHG broker fees of 40 to 60% of line haul charges are unreasonable compared to the 10 to 20% standard in general freight brokerage. The STB should define a reasonable cap on broker compensation for HHG transactions, consistent with the rate reasonableness requirement of 49 USC 13701(a).
Authority: 49 USC 13701(a), 13702(c)(5)
Cap Binding Estimate Fees at 10% of Line Haul
Binding estimate fees currently range from 50 to over 100% of line haul charges and are retained entirely by the broker, not the carrier who bears the risk. The risk to the carrier of a binding estimate is limited to the difference between the estimate and actual costs, which rarely exceeds 10% of line haul. BEFs should be capped at 10% of total estimated line haul charges. BEFs retained by the broker rather than the carrier should be prohibited as junk fees with no corresponding service.
Authority: 49 USC 14104, 13701(a), 14704 (predatory pricing)
Prohibit Broker Control of Carrier Tariff Rates
Safe Ship's broker-carrier agreement grants the broker “the right and authority to make any tariff rate adjustments” that are “binding on CARRIER.” This allows the broker to set prices, override the carrier's own tariff, and control the consumer's charges while disclaiming liability for the service. Delegation of tariff rate authority from carrier to broker should be prohibited as an unreasonable practice under 49 USC 13701(a).
Authority: 49 USC 13701(a), 13702(c)(5), 49 CFR 1310.3
Evidence base: Vellar Holdings LLC v. Bee Movers LLC (Palm Beach County, Case 502026CA008769XXXAMB), broker-carrier agreement showing 60% commission and BEF retention. Wang v. Safe Ship Moving Services (Palm Beach County, Case 502025CA012956XXXAMB), BEF of $2,501 on $4,808 line haul (52%). General freight broker margins of 10 to 20% per industry data. Full analysis: Safe Ship carrier lawsuits, BEF analysis, carrier economics.
Co-sign this STB Rulemaking Petition
This petition will be submitted to the Surface Transportation Board requesting a rulemaking on broker fee reasonableness, binding estimate fee caps, and tariff rate delegation. Organizations, carriers, consumer advocates, and individuals are invited to co-sign.