FMCSA Holds Discussion on Fees Charged for Commercial Towing Services
On June 21, 2024, the Federal Motor Carrier Safety Administration held a public meeting on the transparency of fees being charged for commercial towing services. The meeting served as a forum for stakeholders to interact and identify towing practices and invoicing trends to promote transparency and curtail predatory towing practices. The FMCSA has taken the position that predatory towing practices negatively impact trucking companies and their drivers and are detrimental to the industry.
The meeting was an outgrowth of the Federal Trade Commission’s (FTC) proposed rule entitled, Trade Regulation Rule on Unfair or Deceptive Fees If adopted, the proposed rule would prohibit unfair or deceptive practices relating to fees for goods or services. Specifically, it would prohibit misrepresenting the total costs of services by omitting mandatory fees from advertised prices and preclude misrepresentations regarding the nature and purpose of fees.
On February 7, 2024, the FMCSA submitted a comment in support of the FTC proposal, noting that the proposed rule “may significantly benefit FMCSA’s regulated community, specifically as it relates to predatory towing practices.” The FMCSA’s comment generally endorsed the proposed rule and expressed concern regarding the negative impact predatory towing practices have on motor carriers.
The FMCSA has opened a docket and will accept comments on the transparency of commercial motor vehicle towing fees until August 1, 2024.
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News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.
FMCSA Holds Discussion on Fees Charged for Commercial Towing Services
On June 21, 2024, the Federal Motor Carrier Safety Administration held a public meeting on the transparency of fees being charged for commercial towing services. The meeting served as a forum for stakeholders to interact and identify towing practices and invoicing trends to promote transparency and curtail predatory towing practices. The FMCSA has taken the position that predatory towing practices negatively impact trucking companies and their drivers and are detrimental to the industry.
The meeting was an outgrowth of the Federal Trade Commission’s (FTC) proposed rule entitled, Trade Regulation Rule on Unfair or Deceptive Fees If adopted, the proposed rule would prohibit unfair or deceptive practices relating to fees for goods or services. Specifically, it would prohibit misrepresenting the total costs of services by omitting mandatory fees from advertised prices and preclude misrepresentations regarding the nature and purpose of fees.
On February 7, 2024, the FMCSA submitted a comment in support of the FTC proposal, noting that the proposed rule “may significantly benefit FMCSA’s regulated community, specifically as it relates to predatory towing practices.” The FMCSA’s comment generally endorsed the proposed rule and expressed concern regarding the negative impact predatory towing practices have on motor carriers.
The FMCSA has opened a docket and will accept comments on the transparency of commercial motor vehicle towing fees until August 1, 2024.
News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.