Document ID: FMCSA-2012-0198-0001
Agency: fmcsa
Document Type: Rule
Title: State Enforcement of Household Goods Consumer Protection
Posted Date: 2012-06-04T04:00Z

[Federal Register Volume 77, Number 107 (Monday, June 4, 2012)]
[Rules and Regulations]
[Pages 32901-32903]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-13530]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Parts 371, 375, 386, and 387

State Enforcement of Household Goods Consumer Protection

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of enforcement.

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SUMMARY: FMCSA provides an updated list of statutory provisions and 
FMCSA regulations that State household goods regulatory authorities and 
State attorneys general may enforce, reflecting amendments to FMCSA's 
regulations regarding brokers of household goods. The Safe, 
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy 
for Users (SAFETEA-LU) gives State household goods regulatory 
authorities and State attorneys general the right to enforce certain 
consumer protection provisions that apply to individual shippers and 
are related to interstate movement of the goods.

DATES: On November 17, 2006, FMCSA published a list of the statutory 
and regulatory provisions that State attorneys general and household 
goods regulators are allowed to enforce pursuant to section 4206(b) of 
SAFETEA-LU (71 FR 67009). That enforcement authority was retroactive to 
August 10, 2005, the date of enactment of SAFETEA-LU. The Agency 
amended its household goods regulations on November 29, 2010 (75 FR 
72987). States are now authorized to enforce those regulations, 
retroactive to January 28, 2011, the effective date of the 2010 rule. 
However, the requirement for a $25,000 surety bond or trust fund (49 
CFR 387.307(a)(2)) had a delayed compliance date of January 1, 2012, 
and States may enforce that provision only on or after that date.

FOR FURTHER INFORMATION CONTACT: Mr. Brodie Mack, FMCSA Household Goods 
Enforcement and Compliance Team Leader, Federal Motor Carrier Safety 
Administration, 1200 New Jersey Ave. SE., Washington, DC 20590-0001, 
(202) 366-8045.

SUPPLEMENTARY INFORMATION: Section 4206(b) of SAFETEA-LU (Pub. L. 109-
59, 119 Stat. 1144, 1754, codified at 49 U.S.C. 14710 and 14711), 
provides that State household goods regulatory authorities and State 
attorneys general may enforce certain consumer protection provisions of 
Title 49 of the United States Code (U.S.C.) and related regulations 
applicable to the delivery and transportation of household goods in 
interstate or foreign commerce. Section 14710 authorizes State agencies 
that regulate the movement of intrastate household goods to ``enforce 
the consumer protection provisions of this title [Title 49] that apply 
to individual shippers, as determined by the Secretary [of the U.S. 
Department of Transportation], and are related to the delivery and 
transportation of household goods in interstate commerce.'' Section 
14711 authorizes State attorneys general to bring civil actions in the 
U.S. district courts to enforce the consumer protection provisions that 
apply to individual shippers and are related to the delivery and 
transportation of household goods in interstate or foreign commerce.
    On November 17, 2006, FMCSA issued a notice that specified which 
statutory provisions and FMCSA regulations State household goods 
regulatory authorities and State attorneys general are authorized to 
enforce pursuant to 49 U.S.C. 14710-14711 (71 FR 67009). In that 
notice, FMCSA also stated that it was developing a notice of proposed 
rulemaking that would require brokers of household goods to provide 
individual shippers with specific information required under section 
4212 of SAFETEA-LU. The Agency stated that it would add that rule, once 
it became final, to the list of regulations that State household goods 
regulatory authorities and State attorneys general may enforce.
    On November 29, 2010, FMCSA issued that final rule (75 FR 72987). 
It amended FMCSA's regulations and imposed various requirements on both 
household goods carriers and brokers as follows.
     Special Rules for Household Goods Brokers, 49 CFR part 
371, subpart B. Household goods brokers offering services to individual 
shippers and operating in interstate or foreign commerce are subject to 
the requirements of subpart B of part 371. This subpart requires that 
brokers use only motor carriers that are properly licensed and 
authorized to operate (49 CFR 371.105); provide certain disclosures in 
advertisements and Internet Web homepages, and to individual shippers 
(49 CFR 371.107 through 371.111, 371.117); provide individual shippers 
with a written estimate (49 CFR 371.115); and maintain agreements with 
motor carriers before providing written estimates on behalf of these 
carriers (49 CFR 371.117). Subpart B also establishes penalties for 
violations (49 CFR 371.121).
     Transportation of Household Goods in Interstate Commerce; 
Consumer Protection Regulations, 49 CFR part 375. Household goods 
carriers must provide certain consumer protection information to 
prospective individual shippers unless the consumer expressly waives 
physical receipt (49 CFR 375.213). A household goods carrier permitting 
a broker to provide estimates on its behalf must enter into an 
agreement with the broker adopting the broker's estimate as its own (49 
CFR 375.409).
     Penalty Schedule; Violations and Monetary Penalties, 49 
CFR part 386, Appendix B. Household goods brokers are subject to 
statutory penalties for providing estimates without an agreement with a 
household goods motor carrier and for operating without being 
registered with FMCSA (49 CFR part 386, Appendix B(g)(22)-(23)).
     Minimum Levels of Financial Responsibility for Motor 
Carriers, 49 CFR part 387. The current minimum level of financial 
responsibility required of household goods brokers is $25,000, as of 
January 1, 2012 (49 CFR 387.307(a)(2)).
    The provisions of FMCSA's November 29, 2010, final rule are now 
being included in the list of regulations that State household goods 
regulatory authorities and State attorneys general may enforce, 
effective as of January 28, 2011, except for 49 CFR 387.307(a)(2), 
effective as of January 1, 2012. To assist interested parties, the list 
of statutory

[[Page 32902]]

and regulatory provisions that State household goods regulatory 
authorities and State attorneys general may enforce pursuant to 
sections 14710 and 14711 of SAFETEA-LU is provided in its entirety 
below. The brief description accompanying each item listed below is for 
informational purposes only and is not intended to be a definitive 
interpretation of legal requirements.

Statutes

1. Tariff Requirement for Certain Transportation, 49 U.S.C. 13702

    Household goods carriers must have tariffs covering transportation 
and related services and must charge in accordance with their tariffs. 
The carrier must give notice of availability of the tariff to 
individual shippers and must make the tariff available for inspection 
to shippers upon reasonable request.

2. Household Goods Rates--Estimates; Guarantees of Service, 49 U.S.C. 
13704

    Rates for transportation of household goods moving on a written 
binding estimate must be available to shippers on a non-preferential 
basis and must not result in charges that are predatory.

3. Payment of Rates; Exceptions, 49 U.S.C. 13707(b)

    Household goods carriers must give up possession of a shipment upon 
payment of 100 percent of a binding estimate or 110 percent of a non-
binding estimate, but may collect all charges related to post-contract 
services and impracticable operations at delivery (with some 
limitations as to the latter).

4. Requirement for Registration, 49 U.S.C. 13901; General Civil 
Penalties, 49 U.S.C. 14901(d)(3)

    FMCSA registration is required to provide transportation or 
brokerage services subject to FMCSA jurisdiction. Transportation or 
brokering of household goods without FMCSA registration is punishable 
by a minimum civil penalty of $25,000 per violation.

5. Household Goods Carrier Operations; Estimates, 49 U.S.C. 14104(b)

    Household goods carriers must comply with certain estimating 
requirements and provide individual shippers with prescribed 
informational publications.

6. Liability of Carriers Under Receipts and Bills of Lading; Limiting 
Liability of Household Goods Carriers to Declared Value; 49 U.S.C. 
14706(f)

    Household goods carriers are liable for the replacement value of 
goods unless the individual shipper waives full value protection in 
writing.

7. Dispute Settlement Program for Household Goods Carriers, 49 U.S.C. 
14708

    Household goods carriers must provide binding arbitration upon a 
shipper's request for disputes up to $10,000 involving loss and damage 
and payment of charges in addition to those collected at delivery.

8. General Civil Penalties; Estimate of Broker Without Carrier 
Agreement, 49 U.S.C. 14901(d)(2)

    Household goods brokers making estimates before entering into an 
agreement with a carrier are liable for a minimum civil penalty of 
$10,000 per violation.

9. General Civil Penalties; Violation Relating to Transportation of 
Household Goods, 49 U.S.C. 14901(e)

    Any person falsifying documents relating to household goods 
shipment weight or charging for accessorial services that are not 
performed or are not reasonably necessary for the safe and adequate 
movement of the shipment is subject to a minimum civil penalty of 
$2,000 for the first violation and $5,000 for each subsequent 
violation.

10. Civil Penalty Procedures, 49 U.S.C. 14915

    Holding an household goods shipment hostage is punishable by a 
minimum civil penalty of $10,000 per violation.

Regulations

1. Designation of Process Agent; Required States, 49 CFR 366.4

    All carriers and brokers must designate agents for service of court 
process in States of operation.

2. Principles and Practices for the Investigation and Voluntary 
Disposition of Loss and Damage Claims, 49 CFR 370.3 Through 370.9

    These sections contain regulations governing voluntary disposition 
of loss and damage claims. The regulations protect individual shippers, 
as well as business shippers, by ensuring that motor carriers 
investigate claims and process them in accordance with prescribed 
procedures.

3. Records To Be Kept by Brokers; Right of Review, 49 CFR 371.3(c)

    Brokers must provide access to transaction records by each party to 
a brokered transaction.

4. Records To Be Kept by Brokers; Misrepresentation, 49 CFR 371.7

    Brokers must not misrepresent their name or broker status.

5. Bills of Lading for Freight Forwarders, 49 CFR 373.201

    All household goods freight forwarders must issue a shipper a 
thorough bill of lading covering transportation from origin to 
destination.

6. Transportation of Household Goods in Interstate Commerce; Consumer 
Protection Regulations, 49 CFR Part 375

    This part contains consumer protection regulations governing 
transportation of household goods for individual shippers in interstate 
commerce. The regulations set forth the rights and obligations of 
household goods carriers and shippers with respect to services 
provided; liability; estimates; pick up, delivery and transportation of 
shipments; payment; and penalties for noncompliance.

7. Procedures Governing the Processing, Investigation, and Disposition 
of Overcharge, Duplicate Payment, or Over-Collection Claims, 49 CFR 
378.3 Through 378.9

    These sections set forth the rights and obligations of household 
goods carriers and shippers with respect to the filing and processing 
of claims for overcharge, duplicate payment, and over collection for 
the transportation of property, including household goods.

8. Surety Bond, Certificate of Insurance, or Other Securities; Cargo 
Insurance, 49 CFR 387.301(b)

    Household goods carriers must obtain cargo insurance in prescribed 
amounts and file evidence of such insurance with FMCSA.

9. Property Broker Surety Bond or Trust Fund, 49 CFR 387.307

    All brokers, including household goods brokers, must obtain and 
file a surety bond or trust fund to pay shippers or motor carriers if 
the broker fails to carry out its contracts for the arrangement of 
transportation.

10. General Requirements, 49 CFR 387.403

    Household goods freight forwarders must obtain and file the same 
level of cargo insurance required of household goods motor carriers.

11. Special Rules for Household Goods Brokers, 49 CFR Part 371, Subpart 
B

    Household goods brokers offering services to individual shippers 
and

[[Page 32903]]

operating in interstate or foreign commerce are subject to the 
requirements of subpart B of part 371. This subpart requires that 
brokers: use only motor carriers that are properly licensed and 
authorized to operate (49 CFR 371.105); provide certain disclosures in 
advertisements and Internet Web homepages, and to individual shippers 
(49 CFR 371.107 through 371.111, 371.117); provide individual shippers 
with a written estimate (49 CFR 371.115); and maintain agreements with 
motor carriers before providing written estimates on behalf of these 
carriers (49 CFR 371.117). Subpart B also establishes penalties for 
violations (49 CFR 371.121).

    Issued on: May 16, 2012.
Anne S. Ferro,
Administrator.
[FR Doc. 2012-13530 Filed 6-1-12; 8:45 am]
BILLING CODE 4910-EX-P