New Fines for Double Brokering: What Carriers Should Know

The leading trade group representing the brokerage industry is diving anew into double brokering — the practice of re-brokering a load, sometimes to a company without proper authority, without the original broker's knowledge. As one industry voice put it, the original broker often doesn't find out 'unless something bad happens.'

There is a federal penalty provision that already exists. MAP-21, passed in 2012, includes penalties for double brokering of up to $10,000 per incident. During the writing of that law, the intent was described plainly: give regulators a civil penalty provision to financially go after bad actors in the space.

What this means for carriers and factoring clients

• Confirm that the broker on your rate confirmation holds active authority and is the party named on the load tender
• Never accept a load from a carrier that claims to be 'brokering on behalf' of a broker without written consent
• Keep the paper trail: rate confirmations, recorded check calls and signed BOLs are your defense if a broker refuses to pay
• Watch for red flags: pressure to start immediately, a rate far above market, or a broker who cannot provide their MC number
• Run a credit and authority check on every new customer before you dispatch — QP clients get unlimited broker credit checks

Under our Pure Non-Recourse™ program, qualifying loads carry no chargeback risk — but the first line of defense is still due diligence. QP verifies brokers for clients before dispatch, at no additional cost.