OOIDA relays broker transparency problem to Senate committee

Broker transparency regulations must be enforced to protect truckers from fraud and “shady practices,” OOIDA Executive Vice President Lewie Pugh told a Senate committee on Tuesday, July 22.

The Owner-Operator Independent Drivers Association petitioned the Federal Motor Carrier Safety Administration in 2020 to strengthen existing broker transparency rules. The agency issued a notice of proposed rulemaking in 2024 and said this past June that it plans to take steps to address unlawful brokers.

Truckers believe that without transparency, they are at a disadvantage in terms of receiving fair rates as well as potentially being victimized by bogus claims and various forms of fraud.

As part of a Senate Surface Transportation Committee hearing on Tuesday, July 22, Pugh explained the problem to lawmakers.

“Unfortunately, brokers have a long history of deliberately and blatantly circumventing transparency requirements,” Pugh wrote in his submitted testimony. “In order to protect against fraud and scams, we tell our members that they should closely examine documentation and verify that all information is legitimate. If brokers are allowed to continue evading federal transparency regulations, it makes it difficult for carriers to determine who is adhering to the rules or who may be trying to scam them. In short, practices that undermine trust and transparency will make it harder to determine who is a bad actor.”

DOT efforts

On June 27, the U.S. Department of Transportation unveiled a “Pro-Trucker Package” aimed at improving the truck driving profession. Among the package’s nine initiatives, the DOT said it would address unlawful brokering. Although few details have been released, the agency confirmed in July that doing so could include finalizing a broker transparency rule.

“To promote fairness and stability of the industry, FMCSA is renewing its focus on combating unlawful double brokering – a practice that directly harms drivers,” a DOT spokesperson said. “That includes reviewing the entire portfolio of regulatory actions listed in the Fall 2024 Unified Agenda, including the broker transparency rulemaking proposal.”

Pugh told the Senate committee that if FMCSA is unable to fully address the problem, it is “imperative” for Congress to act.

Brokers push back

In response to Pugh’s testimony, the Transportation Intermediaries Association released a statement suggesting that broker transparency rules are outdated.

“This is a 1980s-era regulation being weaponized in 2025,” TIA President Chris Burroughs wrote. “It should be withdrawn immediately. Congress and regulators should focus on real solutions to freight fraud and market abuse – not misguided policies that punish legitimate players and destabilize the supply chain.”

However, OOIDA has maintained its stance that requiring brokers to comply with existing regulations does not disrupt a free market.

“You’re still going to negotiate every load,” OOIDA President Todd Spencer said during a “fireside chat” in January. “You’re going to make the best deal that you can. That’s not going to change in any way.”

“Some of the brokers are just apocalyptic about this,” Spencer added. “This will sort out the good guys from the bad guys. The good brokers will get more dedicated truckers that will be working with them … Truckers will figure out pretty quick who they don’t want to do business with. There are no losers here. Everybody’s a winner.” LL