Consumer Protection: Some Improvements in Federal Oversight of Household Goods Moving Industry Since 2001, but More Action Needed to Better Protect Individual Consumers

In 2007, we reported the Federal Motor Carrier Safety Administration (FMCSA) had not established a comprehensive strategy to fully measure the overall effectiveness of the agency's household goods enforcement and oversight efforts. We recommended that FMCSA develop a strategy with performance goals and measures that delineate how its oversight and enforcement activities related to household goods movers will improve consumer protection. The strategy and performance goals and measures should delineate a method for monitoring and evaluating FMCSA's performance against set goals and timelines to improve consumer protection. In response, FMCSA's FY2011 budget included a strategy, measures and performance goals to address FMCSA's household goods consumer protection responsibility. FMCSA's strategy is to address the highest risk carriers for which complaints have been received; and in addition to this risk-based approach, conduct consistent enforcement activities, national household goods strike forces, and effective outreach and education initiatives. To measure this effort, FMCSA has created a new Household Goods Commercial Review (HHG CR) Improvement Rate with specific annual goals. For example, for 2010 and 2011 the goals and timelines were to achieve an 18 percent and 20 percent improvement rate respectively. The HHG CR compares the average number of complaints received on household goods companies 12 months leading up to the time they receive a commercial review to the average number of complaints received on those same household goods companies 12 months after the same review. The performance measure represents an improvement rate in customer complaints for household goods companies that FMCSA reviewed in a given year. This new consumer protection performance measure correlates the improvement of carrier adherence to commercial regulations to the incidence of consumer complaints. FMCSA measures success in terms of fewer consumer complaints against household carriers following a commercial review intervention. As a result, the agency will be better able to measure its overall effectiveness in household goods enforcement.

Federal Motor Carrier Safety Administration (FMCSA) has developed a Web site, "Protect Your Move," that provides information to consumers on choosing a mover. In 2007 we reported that if consumers were aware of the information available on FMCSA's "Protect your Move" Web site while researching moving companies over the internet, they could improve their knowledge about how to conduct a successful move, make more informed choices and potentially avoid being a victim of an illegitimate mover. We recommended that FMCSA develop a strategy that included determining whether interstate movers should be required to place a Web address link to FMCSA's "Protect your Move" Web site in all their online and print advertising to aid consumers in making more informed decisions about choosing and contracting with a mover. In November 2010, FMCSA determined it has the authority to require interstate movers to place a Web address link on their online and print advertising directing consumers to the "Protect your Move" website. FMCSA plans to address the requirement through the rulemaking process. As a result of these efforts, FMCSA will enhance its effectiveness in protecting consumers by aiding them in making more informed decisions about choosing and contracting with a mover.

In 2005, The Safe, Accountable, Flexible, Efficient, Transportation Equity Act-A Legacy for Users (SAFETEA-LU) mandated that the Department of Transportation develop and implement an outreach plan to enhance cooperation and enforcement of federal consumer protection laws between federal and state law enforcement and consumer protection authorities. In 2007, although the Federal Motor Carrier Safety Administration (FMCSA) hired a contractor, we reported that the agency had yet to develop the plan. We recommended the Secretary of Transportation direct the Administrator of FMCSA that in developing and implementing an outreach plan, the agency should include information such as guidance to state officials on what is required to enable them to enforce the federal laws in this area, including laws regarding holding goods hostage in their state. In response, FMCSA issued the "Household Goods Enforcement Assistance Outreach Plan, Report to Congress" in May 2009. In October 2009, we reported that FMCSA had begun implementing some of the action items in the plan. FMCSA had initiated work on some action items, including guidance to states on statutory and regulatory provisions that states may enforce. In addition, in October 2010 FMCSA noted that they were continuing to implement additional action items in the outreach plan. As a result of developing and implementing the outreach plan, FMCSA will be better able to enlist states and other stakeholders in the enforcement of household goods movers. .