This just in...Weekly Satellite Usage Fee Deemed Unlawful Forced-Purchase Under Federal Leasing Regu

Lawrence

Founder
Staff member
With the advanced technology of Smartphones - this shouldn't be an issue much longer.

Weekly Satellite Usage Fee Deemed Unlawful Forced-Purchase Under Federal Leasing Regulations



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LDB

Veteran Expediter
Retired Expediter
That $35 a week will buy lunch every weekday. It's way too high and should have been dealt fairly a long time ago.

I wonder how long until that turns into a class action lawsuit where all the guys who paid several thousand dollars too much get a $187 refund and the lawyers get $8342 of it.
 
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Turtle

Administrator
Staff member
Retired Expediter
Can't they just require owners to buy their own unit?
I certainly could be wrong, but I don't think so. From the ruling...

"This $15 usage fee violates 49 C.F.R. § 376.12(i), which precludes a motor carrier like TransAm from requiring a trucker “to purchase or rent any products, equipment, or services from the authorized carrier as a condition of entering into the lease arrangement.” We, therefore, affirm partial summary judgment for the truckers."

"TransAm violated § 376.12(i) because it required truckers to purchase a service—the use of TransAm’s satellite communications system—as a condition of entering into a lease arrangement. More specifically, TransAm required truckers to pay TransAm $15 each week to use TransAm’s satellite communications system, regardless of whether the truckers borrowed the hardware to access that system from TransAm or furnished it themselves. We agree with the district court that, while TransAm can require truckers to use a satellite communication system, TransAm “cannot under § 376.12(i) require its independent contractors to purchase or rent this system from it” (Aplt. App. 1018). Instead, truckers “must have the option of obtaining equipment or services—including satellite communications services—from an outside source.”
 

ATeam

Senior Member
Retired Expediter
It's been a while so my memory may be inaccurate about this but I seem to recall that both carriers we ran with (FedEx Custom Critical and Landstar Express America) gave us the option of having Qualcomm in the truck. It was not a requirement. As a practical matter, Qualcomm was needed for all that it does, but in theory, business could be done by phone, so Qualcomm was not required. That may be the loophole-out that will enable those two carriers from being affected by this ruling.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Well there goes a revenue stream for the carriers.. now how will the get that hand back into our pockets.


King of short runs.
oh...make them have DOT safetys 2-3 times a year...I have NEVER had a safety item cause my breakdown...
 
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RoadTime

Veteran Expediter
Owner/Operator
Since this should apply to a vast amount of carriers, I wonder how long before we see anything different.
Or will they wait for a lawsuit before we see any...change

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OntarioVanMan

Retired Expediter
Owner/Operator
Since this should apply to a vast amount of carriers, I wonder how long before we see anything different.
Or will they wait for a lawsuit before we see any...change

cf1a52a7880b8753bc5517d3a2957491.jpg



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considering the investment some carriers have in the onboard pieces of crap ...quite awhile...
 

OntarioVanMan

Retired Expediter
Owner/Operator
Since this should apply to a vast amount of carriers, I wonder how long before we see anything different.
Or will they wait for a lawsuit before we see any...change

cf1a52a7880b8753bc5517d3a2957491.jpg



Sent from my iPhone using EO Forums
just inform your carrier you'd prefer to use the Sylectus app that is available....for FREE

Sylectus Mobile FREE at your Apple store....I have it...
 
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BIGTRAIN

Expert Expediter
Owner/Operator
I don't mind paying for stuff ......but after its paid off ...I own it . And when Our lease agreement comes to an end ....you can buy it back or I take it with me . I was leased to a company where they charged 35 or 40 dollars a week , wHeather you ran or not for the Qualcomm . Well .....let's say you are with them for 5 years ......that's Well over 10k ......they aren't worth that much . Stop payments when it's paid for .....them buy it back .
 
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Moot

Veteran Expediter
Owner/Operator
It's been a while so my memory may be inaccurate about this but I seem to recall that both carriers we ran with (FedEx Custom Critical and Landstar Express America) gave us the option of having Qualcomm in the truck. It was not a requirement.
Con-Way was the same, at least when we were on percentage pay. If we opted for the Qualcomm we got an extra ½ or 1%.[/QUOTE]

As a practical matter, Qualcomm was needed for all that it does, but in theory, business could be done by phone, so Qualcomm was not required. That may be the loophole-out that will enable those two carriers from being affected by this ruling.
I never met a Con-Way driver that did not have a QC. I would guess that a unit without a QC might get skipped over because it would be inconvenient to dispatch. We were also required to have a nationwide pager.
 

RETIDEPXE

Veteran Expediter
If I'm reading this right, Trans Am was pounced on because they did not include verbiage of the charge or options in their contractor agreements. It's not saying it is illegal to charge the fees, just means carriers need to ensure the fee and options are agreed upon, in writing, for it to be legal. From the article; "Motor carriers that charge owner-operators for satellite or ELD usage should review their operating agreements to ensure they include required disclosures and offer owner-operators necessary freedoms when it comes to the purchase of services and products.
 
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