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DOT and FMCSA Back FTC Push to Ban Predatory Towing Fees

Federal officials have formally aligned with the Federal Trade Commission to crack down on the hidden charges that exploit commercial drivers after non-consensual tows.

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Washington, D.C. — Transportation Secretary Pete Buttigieg and the Federal Motor Carrier Safety Administration (FMCSA) submitted a formal comment supporting the Federal Trade Commission’s proposed rule to eliminate "junk fees." The agencies specifically targeted the predatory towing industry, which has been documented charging commercial drivers up to $140,000 for a single tractor-trailer incident. This federal intervention marks a significant escalation in the fight against billing practices that capitalize on the vulnerability of drivers who are unable to earn a living while their vehicles are impounded.

The surge in predatory towing incidents has drawn scrutiny from multiple government bodies and industry advocates. Investigations have revealed that some towing operations receive training designed to inflate invoices, often by billing for obscure overhead items such as communication headsets. The FMCSA stated that these practices fall squarely within the scope of the FTC’s proposed rule, which aims to prohibit businesses from charging hidden or bogus fees by requiring all mandatory costs to be included in the initial price quote. For the average OTR truck driver, a non-consensual tow is not merely an inconvenience; it is a financial crisis that leaves them powerless against exorbitant demands for basic vehicle retrieval.

Acting Deputy Administrator Sue Lawless emphasized that the current state of towing fees is detrimental to the overall health of the trucking industry. Lawless noted that excessive rates and unfair surcharges negatively impact both commercial motor vehicle drivers and the trucking companies hiring them. The federal initiative is part of a broader administration effort to standardize pricing and transparency, ensuring that each illegal fee is treated as a separate legal violation rather than a minor administrative error.

What This Means for Drivers

For CDL-A drivers and owner-operators, this proposed rule represents a potential shift in how towing disputes are handled at the federal level. The FMCSA has called for a ban on fees for unnecessary goods or services that should reasonably be included in the upfront price. This proposal seeks to restrict variable fees for fixed costs, a common tactic used by towing companies to obscure the true cost of service. If finalized, these regulations would provide a clearer legal framework for drivers to contest unfair billing and protect their earnings during the downtime caused by an impound.

Industry Reaction

The Owner-Operator’s Independent Drivers Association (OOIDA) has actively supported state-level efforts to curb predatory towing, including legislation in Maryland, Missouri, and Tennessee. Maryland has already enacted robust laws against non-consensual towing ordered by police, while a new bill in Florida proposes setting maximum towing rates and storage fees. In Missouri, proposed regulations aim to enforce itemized receipts and streamlined processes for cargo retrieval. OOIDA continues to advocate for federal protections, arguing that state-by-state measures are insufficient to address the systemic nature of the problem. As truck driver jobs and carrier operations face increasing financial pressure from these unexpected costs, the push for uniform federal standards gains momentum among industry leaders.

Key Points

  • FMCSA and the DOT have formally backed the FTC’s proposed rule to ban hidden "junk fees" in the towing industry.
  • Investigations have documented towing companies charging up to $140,000 for a single commercial vehicle incident.
  • The proposed rule would treat each undisclosed mandatory fee as a separate legal violation.
  • States including Maryland, Florida, and Missouri are enacting their own regulations to limit towing rates and improve transparency.

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Photo by Shantum Singh on Pexels

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Dana Merritt
Freight market analyst and former dispatcher with 12 years at a regional flatbed carrier. Dana specializes in spot rates, load boards, and the economics of owner-operator life.