Moving Company Laws - tariff discounts

Law Offices of Michael Garcia

Transportation law • Tariff Publishing • Regulatory Compliance • Consumer Protection

Legal compliance for interstate moving companies:

May discounts of tariff charges be given?

No. Tariff rates/prices for line haul and accessorial services must NOT be randomly or individually discounted. Moving companies may not charge or receive different rates/prices for services other than the rates/prices specified in the tariff. This includes not offering or returning a discount or part of the rate to a customer. (see 49 USC § 13702(a)(2)). Amendments or changes to tariff rates/prices, properly documented, may be used to change the rates/prices for services; this is the only form of "discounting" that may be permissible. Under this method careful record keeping must be used to follow the law.

What are the penalties for tariff violations?

Penalties for violating tariff provisions by either overcharging or undercharging are both civil and criminal. Any person who charges rates over or under the tariff rate shall be liable for a civil penalty of up to $100,000.00 for each individual violation. (see 49 USC § 14903(a)). Any person who charges a rate/price over or under the tariff rate/price may be subject to criminal charges and penalties. Criminal penalties for tariff violations include financial fine and/or a sentence to prison for up to two (2) years for each individual violation. (see 49 USC § 14903(b)).

Note: In addition to the above general requirements, an interstate moving company must continue to follow all provisions of federal law governing interstate moves. Federal laws regulating moving companies are designed to help protect consumers and create an even playing field for moving companies. By following the law, moving companies can avoid government fines, lawsuits, and provide better service to their customers.