TIA condemns FMCSA’s broker transparency NPRM as misguided overreach

The Transportation Intermediaries Association (TIA) is deeply disappointed by the FMCSA's decision to release a Notice of Proposed Rulemaking (NPRM) on broker transparency while failing to address the far more pressing issue of freight fraud, which costs the U.S. supply chain more than $1 billion annually. This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains.

TIA has consistently maintained that the broker transparency regulation, rooted in the 1980s, is obsolete and un-American. Originally implemented in an era following trucking deregulation when brokers acted as commissioned sales agents for motor carriers, this rule has no place in today’s highly transparent marketplace. Any attempts to expand or enhance these outdated provisions should be shelved, and the FMCSA should redirect its attention to fulfilling its primary mission—ensuring safety on our highways and addressing rampant freight fraud.

While TIA respects that current regulations must be followed, we find it notable that during the COVID-19 pandemic, when broker transparency was last debated, the National Consumer Complaint Database recorded zero complaints related to this issue. In stark contrast, there were more than 80,000 complaints related to freight fraud and unlawful brokerage activities. This stark disparity highlights the misaligned priorities of the FMCSA under the current administration.

In summary, TIA opposes this NPRM and any attempt by the Biden administration to overreach into commercial business activities. Regulations like these threaten to erode the foundations of American capitalism, stifling innovation and efficiency. FMCSA must abandon this regulatory overreach and focus instead on its core mission: improving safety and addressing the rampant freight fraud plaguing the transportation industry.