Part 2: Why is this happening?
Part 3: The Role of the Internet
Part 2 of this series on moving scams & rogue movers covers a bit of history on the moving industry in order to shed some light on why scams and disreputable practices have become so prevalent.
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If you’ve ever taken a self-defense class, the first thing your former cop/karate-master/ex-hell’s angel biker instructor told you was to “be aware of your surroundings.” All images of dark alleys aside, this advice holds true when you are researching and hiring moving companies as well. By knowing a little background on the moving industry you’ll be an informed consumer ready and aware of your situation when moving.
A little history…
Back in the day (1935), moving companies were heavily regulated by the Interstate Commerce Commission, a federal regulatory agency. The ICC watched over the industry closely, regulating entry, areas serviced, routes taken, etc. Later, moving companies were given the special privilege to meet with each other and decide upon tariffs (prices) that they would charge for their services. In short, moving companies were heavily regulated in terms of who could be a moving company, what they could do, and how much they could charge.
In 1980, Jimmy Carter passed legislation that deregulated the industry. Carter’s legislation made it much easier to become a moving company, loosened regulations on what moving companies could do (like hauling goods on a return trip), and introduced price competition. The general idea was to make the industry more efficient and lower prices.
This in itself was not necessarily a problem. However, it did open the door for many new, inexperienced moving companies to enter, as well as create the incentive to attract business through quoting lower prices. But the ability to quote low prices and hold your furniture hostage for a fee doesn’t pay off unless the moving company can get away with it.
The Carmack Amendment, a federal statute, preempts state law and is what allows moving companies to get away with breaches of contract, deceptive practices, negligence, and even fraud. Therefore, consumers can’t utilize state laws related to loss or damage of goods when an issue occurs with their moving company. While industry associations and businesses have raised quality standards on moving companies to combat the issue, consumers are still left legally unprotected. Many advocates are pushing for better consumer protection through state laws, but for now, it seems like it is up to the consumer to “be aware of your surroundings.”
[via movingscam.com]
Continue to Part 3: The Role of the Internet
Resources:
General Account Office’s Report: Consumer Protection – Federal Actions are Needed to Improve Oversight of the Household Goods Moving Industry

