Maintaining compliance with regualtions and following the law is essential for the success of logistics and transportation companies. Working with a reputable company to help with licensing and advice makes it easier for businesses to stay on top of their licensing requirements. However, it's important for business owners to be aware of unethical licensing and registration sales tactics that some companies use. The FTC brought a lawsuit against a group of four companies for using unethical tactics, resulting in a $900,000 settlement paid by one of them, Excelsior Enterprises International. The other companies are DOTAuthority.com, DOTFilings.com, and JPL Enterprises International.
As a result of this settlement, the Federal Trade Commission will be sending checks totalling $757,946 to 14,948 small businesses, refunding an average of $50 per business. Last year, the FTC also sent money to 246 trucking companies as a result of the same case. The second round of checks came about after further investigation revealed more customer information. The FTC complaint from 2016 says that DOTAuthority sent misleading messages, which implied that they were the U.S. Department of Transportation, the Unified Carrier Registration system and other government agencies, or that they were affiliated with them.
The defendants, which included the four companies and two individuals, have agreed to an order requiring them to identify themselves as a private third-party service provider when contacting customers and any fees that they charge. Any trucking companies that think they should have received a refund but haven't can contact the refund administrator, Rust Consulting, at 866-303-8537.
These companies are not the only ones that might use unethical tactics. There are various methods that they might use to cause confusion, misrepresenting who they are, what they do and how much authority they have. They may also try to pressure clients into purchasing non-essential services or paying additional fees. However, if you choose the right company to help you with your licensing and registration, you can ensure your company is in compliance and there is no disruption to your business.
Logistec/TTS provides assistance with licensing, as well as consulting services. We can handle all of your transportation needs in one place, from getting your USDOT number to completing IFTA reports. We are accredited by the Better Business Bureau, with an A+ rating, and we are FMCSA-registered. As independent agents, we never misrepresent ourselves or pretend to be anyone we're not, and we don't claim to be able to do anything that we can't.
Logistec/TTS makes it easier for trucking and logistics companies to organize licensing and permitting. With our sister companies, we can also help with transportation brokerage, factoring, and both personal and commercial truck insurance. You can rely on us to provide an honest and trustworthy service for your business.