New Coalition Defends Towing Industry

On October 20, 2022, the Federal Trade Commission (FTC) announced that it was exploring a new proposed rule on “Unfair or Deceptive Fees” to crack down on supposed junk fees proliferating through the economy. The Commission then voted 3 to 1 in favor of approving publication of the advance notice of proposed rulemaking (ANPRM), which received over 12,000 comments. 

On November 9, 2023, the FTC published a notice of proposed rulemaking (NPRM) entitled “Rule on Unfair or Deceptive Fees.” This would prohibit unfair or deceptive practices relating to fees for goods or services, specifically misrepresenting the total costs of goods and services by omitting mandatory fees from advertised prices and misrepresenting the nature and purpose of fees.

With the announcement of the new rule, the FTC opened a 60-day public comment period that closed on January 8, 2024, but was extended an additional 30-days to February 7, 2024. On the last day before the extended comment period closed, the Federal Motor Carriers Safety Administration (FMCSA), a division of the Department of Transportation (DOT), submitted comments in support of the proposed rule, stating in part:

“The proposed regulation may significantly benefit FMCSA’s regulated community, specifically as it relates to the predatory towing practices that have a substantial financial impact on CMV owner operators.” Further, the comments stated that, “FMCSA believes that these predatory towing fee practices fall within the purview of FTC’s proposed regulation on unfair or deceptive fees, and offers the following support and suggestions for consideration.” These comments also go on to suggest additional regulations to target what they perceive to be predatory towing practices.

As of midnight on February 7, 2024, the comment period closed, and no more comments could be submitted. To this day, no one from the towing and recovery industry submitted comments, participated in the rulemaking process, or informed our vast community about the potential devastating impact these rules will have on our businesses and livelihood.

These circumstances now have ended.

THE NOCSHC’S TAKES ON THE FIGHT

Statement released by OSCHA was: We created the National Open Commerce and Safer Highways Coalition (NOCSHC) to fight this unnecessary and likely devastating government action, participate in the process, defend and inform the industry, and prepare for any and all action necessary to respond. The NOCSHC is a coalition of committed towing and recovery companies, allied businesses and emergency-responder communities employed and dedicated to keeping our roads open and safe. We are taking immediate action to: -- Retain the highest-caliber legal representation to engage the FTC rulemaking process where it stands today, assess the risk and liability the rule poses to the industry, and prepare to take any and all legal actions to protect and defend our interests at the Federal level. -- Retain federal lobbying representation to engage Members of Congress regarding their oversight of the regulatory process, engage the FTC, FMCSA, and DOT, and tirelessly advocate for the coalition to ensure our voice is heard. -- Inform the industry. Everyone deserves to know the impact and liability your business faces and what is being done to address the proposed rule. The NOCSHC will be your source of information and your voice in Washington, DC.

A CALL TO ACTION

For far too long there has been silence and inaction from the towing and recovery industry. The NOCSHC will speak with a united voice and an unwavering commitment to fight this erroneous and unnecessary regulatory action so that this industry will never be silent. We will be prepared to fight back. We are facing a grave and immediate threat from powerful and well-funded opposition working in concert with our industry’s same government regulators. 

We can not be silent and we must take action now! 

We need your help. This battle requires an “all hands on deck” approach.  The consequences of this federal action are real and the process is well underway. We need every towing and recovery company, every state association, every allied business, and our emergency responder partners to join this crucial effort today! 

Please email info@nocshc.com to get involved today!!

Source: National Open and Safer Highways Coalition - NOCSH