By Dr. Kernaghan Webb
Senior Legal Policy Advisor and Chief of Research,
Office of Consumer Affairs, Industry Canada

Unscrupulous practices of some movers have long caused problems for consumers…and for the reputations of all Canadian movers. A working group has been put together to develop voluntary guidelines for the moving industry, as well as associated consumer self-help information, to assist consumers in identifying good movers and thereby decrease the likelihood of problems arising. The guidelines and consumer self-help information will also assist good moving companies in their efforts to demonstrate their good practices.

Industry Canada’s Office of Consumer Affairs is spearheading this initiative. Other groups involved in its initial development are CAM, the Better Business Bureau, provincial governments of Alberta, Ontario and Quebec, the federal Competition Bureau, consumer organizations, the owner of The Moving Store, and a professor from York University who is also a past president of a national consumer organization.

Building on a wide variety of work on market-based voluntary codes, standards and complaints-management systems that has already been undertaken by federal, provincial and territorial governments, industry associations and consumer organizations, the objective of the working group is to devise a set of good-practice guidelines for the moving industry (and associated consumer-advice checklists and other self-help information), which could perhaps form the basis for a voluntary code certification program for the industry.

(As used here, “guidelines” can be applied by individual firms and industry associations, and can be seen as precursors for industry association “voluntary codes of conduct” and associated certification programs. This is discussed in greater detail below under “Next Steps.”)

As currently envisaged, the guidelines and consumer-advice checklists/self-help information will be promoted by the BBB on its websites, distributed by individual movers and participating mover associations, and made available on government consumer-protection websites and consumer-organization websites.

The working group’s tasks consist of:

• identifying and analyzing current consumer problems pertaining to the moving industry, statistical information concerning complaints and enforcement, good practices of the moving industry, and existing consumer-assistance pamphlets and guides;
• preparing draft “good practice” guidelines;
• publishing draft “good practice” guidelines for public comment;
• revising and publishing a final version of guidelines;
• preparing a consumer-advice checklist of “things to ask and watch for” concerning movers, and other self-help information.

The group hopes to make a first draft of the guidelines available for public consultation in Spring 2003.

To be Tackled: Problem Areas

Research suggests that this is an area where consumers can do much to help themselves, by asking good questions up front and looking for evidence that a mover is reliable. Guidelines of good mover practice will help both consumers and movers to reduce the likelihood of problems arising.

Publicity of both consumer “questions to be asked” and the good-mover-practice guidelines will help to isolate bad actors.

Below, the Working Group’s information to date is organized in four categories:

1. Evidence that there is a problem
2. Types of problems
3. Suggestions for movers
4. Guidance for consumers

Evidence of a Problem

Government and Better Business Bureau statistics consistently show consumer complaints concerning the moving and storage industry to be in or near the top 10 of consumer complaints in Canada. For example, in August 2002, the Ontario Minister of Consumer and Business Services announced that dishonest moving companies ranked in the top five problem areas as identified by its Consumer Services Bureau (see www.cbs.gov.on.ca/mcbs/english/5CZPJC.htm). The Canadian Council of Better Business Bureaus, which aggregates complaints and inquiries from all of its Bureaus across the country, has consistently listed the moving and storage business as one of the top five identified complaints areas for the past several months (see www.canadiancouncilbbb.ca/topten.html).

Types of Problems

A statistical breakdown on most-common to least-common problems is not available, so the following listing is anecdotal in nature.

• Local moving (e.g., within a city) can be particularly problematic, because anyone with a strong back can rent a truck, put an ad in the paper advertising very low prices that undercut those of established reliable movers, and be in business.
• Public perception that movers are not professionals, which can create the illusion that one mover is as good as another, making price the only determining factor in choosing a mover.
• From a mover’s perspective, a problem regularly experienced is that clients are not ready (still packing) when the van arrives. This delays things right off the bat and gets things off to a bad start.
• Written estimates are not respected.
• Appointment times are not respected, causing delays.
• Cash payment is asked for at the last minute; if cash is not provided, the mover refuses to do the job, holding the customer hostage.
• Deposits are required months in advance, and then more unexpected payments are asked for at the time of the move (again, holding the customer hostage).
• Refusal to provide moved goods until more money is paid (holding customer hostage).
• “Long-distance” problem: the mover is located in the city where the person was moved from, but has no local office in the person’s new location, leaving the customer without the ability to effectively address problems at the local level.
• The mover who makes the estimate and/or collects the goods transfers the goods to another, less-professional mover.
• Problems with reliability.
• Problems with punctuality.
• Problems with readiness.
• Problems with professionalism.

Suggestions for Movers

The working group is still exploring what appropriate guidelines of good conduct for movers should be. At this point, the working group is considering following the same basic approach as that used in the American Moving and Storage Association’s 12-point Code of Conduct, with changes as appropriate (see )www.promover.org/about/certmover.html). For example, pursuant to the envisaged good-practice guidelines, Canadian movers would commit to:

• Provide a pamphlet to prospective customers outlining customer and mover rights and responsibilities.
• Provide customers, prior to the move, with written material regarding mover liability for loss or damage, optional programs available, limitations on liability and additional costs associated with each level of liability.
• Provide written estimates of costs that describe the shipment and the cost of all services requested by the customer. When requested, provide a binding not-to-exceed estimate that describes the shipment and the cost of all services requested by the customer.
• Abide by the 110% rule for the collection of estimated charges, plus the full amount of any additional charges for services that were not included in the estimate that were either requested by the shipper or necessary to accomplish the transportation and delivery of the shipment, and to postpone the collection of any estimated charges in excess of 110% of the estimated amount that may be due for 30 days after delivery.
• Not holding shipments hostage, and releasing shipments upon customer payment of no more than 110% of the non-binding estimate amount, or 100% of the binding estimate amount, plus the full amount of charges for additional services that were not included in the estimate, that were either requested by the shipper or necessary to accomplish the transportation and delivery of the shipment.
• Prepare, prior to loading of a shipment, a descriptive inventory of the goods to be moved that shall be presented for signature to the customer or his authorized representative who is present at origin for loading and again at destination as the goods are unloaded.
• Determine the weight of each shipment by the use of a certified scale at origin or destination when charges are based on weight, and to furnish evidence of that weight to the customer, if requested. Perform a “reweight” of the shipment and furnish evidence of the reweight to the customer.
• Make reasonable efforts to fulfill the arrangements made for servicing a shipment, including the performance of pickup and delivery within the dates shown in the bill of lading. Keep customers advised of any service delays and provide them with information as to when service may be expected to be performed.
• Acknowledge, in writing, within 30 days of the receipt of a written loss-or-damage claim or delay claim, to thereafter pay, decline, make a firm compromise offer or advise the claimant of the status of the claim and any reason for a delay in making a final disposition within 120 days of receipt of any documented claim for loss or damage, or for any documented claim for delay in delivery beyond the dates shown on the bill of lading, when the claim is filed by the customer within nine months after delivery.
• Promptly and fairly attempt to resolve disputes concerning loss or damage claims to household goods, through in-house complaints-handling and external dispute-resolution processes.
• Communicate with the public through fair and accurate advertisements regarding the services that may be performed.
• If working in conjunction with other agents, make best efforts to ensure that these agents also comply with the above commitments.
• Fumigate equipment regularly.

Guidance for Consumers

At this point, the working group is still exploring the precise nature of guidance that could be provided to consumers. The type of guidance that is being considered includes:

• Get recommendations for reliable movers from friends, check with BBB, industry associations, or the Better Moving Registry for a list of recommended movers.
• Start looking for movers as soon as you have a firm idea of your moving date and destination, because good movers may already be booked if you wait until the last minute.
• Find out: Is the mover a member of a moving association? Has the mover been in business for some time?
• Compare estimates and practices of two or three movers, so that you have a better idea of options and quality.
• Give precise information to the mover, for example about the distance between your old and new residences and any stairs or escalators that have to be navigated.
• Show the estimator everything you want moved, from basement to attic, noting any special services (e.g., for piano). This way you can avoid being charged more later.
• Inquire about seasonal rates.
• Get written, binding estimates.
• Get the full name of the person who provided the estimate or any other assurances.
• Get all assurances in writing, on the letterhead of the mover.
• Make an inventory of goods to be moved.
• Supervise the loading and unloading or arrange for someone else to do this.
• If damage or loss occurs, have the driver make a note of this in writing, and notify the company promptly.
• Check to see that the mover has an insurance certificate and a workers’ compensation board certificate.
• If feasible, keep your valuables (e.g., jewellery) with you.
• If feasible, keep your perishables with you and recognize that heat or cold may affect your goods. Note your requirements in this area, so that special arrangements can be made as appropriate.
• Get a guarantee regarding such things as breakage compensation, delivery date, and storage. Inquire about liability per pound or per item and arrange additional insurance if necessary.
• Make claims as early as possible: normally movers will stipulate that claims must be made within 30 days for local moves and 60 days for long-distance moves.
• Clarify methods of payment at the outset.
• If a deposit is required, find out if the money is put in trust (this is required in some jurisdictions).

Next Steps

In Spring 2003, draft versions of good-practice guidelines for movers and guidance for consumers will be made available for public comment. Following receipt and review of the comments, and revisions as appropriate, a finalized version of the mover guidelines and consumer guidance will be made available for publication on government, business and consumer-organization websites. It is also hoped that the guidelines will form the basis for a Canadian Association of Movers code of conduct and certification program, whereby:

• the terms of the code are agreed to by members as a term of membership in the Association;
• there is an associated certification/ verification program regime to ensure implementation;
• there are training programs provided for employees so that they can better comply with the code; and
• a logo to promote the code is available (e.g., “certified reliable mover”), which can be withdrawn in instances of persistent non-compliance.

Preliminary discussions with the Canadian Association of Movers indicate considerable interest in developing such a code and certification program, based on the guidelines.

For further information concerning this initiative, contact Dr. Kernaghan Webb at webb.Kernaghan@ic.gc.ca.

Sidebar

The Canadian Association of Movers is vitally interested in improving customer satisfaction with the moving industry. It is in the industry’s interest and the public’s good that we do so. Part of CAM’s mandate is to help the buying public access credible, professional moving services.

The certification program now being developed will be based on qualifications. It will require that specified standards of disclosure and performance be met, and will specify remedies when they are not. Both certified movers and their customers will know what is expected of the mover and understand the process to deal with disputes.

The working group sees CAM’s role in the program as developer of the framework for a Canadian movers’ certification program that could be reviewed by the project group. Consumer groups could assist in developing the standards and in providing oversight for the program. Industry Canada and the Better Business Bureau could encourage consumers to look for reputable industry “certified mover” programs. The Better Business Bureau could act as the third-party dispute resolver in cases where certified movers are unable to satisfactorily address complaints internally. CAM views this as a very positive step for the consumer and our industry.