---
kind: "section"
citation: "49 U.S.C. § 14916"
title: "49"
title_heading: "Transportation"
number: "14916"
heading: "Unlawful brokerage activities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/49/14916"
units:
  - "Subtitle IV — Interstate Transportation"
  - "Part B — Motor Carriers, Water Carriers, Brokers, and Freight Forwarders"
  - "Chapter 149 — Civil and Criminal Penalties"
---

# §14916. Unlawful brokerage activities

- (a) **Prohibited Activities.—** A [person](/usc/49/13102.md?p=18) may provide interstate brokerage services as a [broker](/usc/49/13102.md?p=2) only if that [person](/usc/49/13102.md?p=18)—
  - (1) is registered under, and in compliance with, [section 13904](/usc/49/13904.md); and
  - (2) has satisfied the financial security requirements under section 13906.
- (b) **Exceptions.—** [Subsection (a)](#a) shall not apply to—
  - (1) a non-[vessel](/usc/49/13102.md?p=25)-operating common [carrier](/usc/49/13102.md?p=3) (as defined in [section 40102 of title 46](/usc/46/40102.md)) or an ocean [freight forwarder](/usc/49/13102.md?p=8) (as defined in [section 40102 of title 46](/usc/46/40102.md)) when arranging for inland [transportation](/usc/49/10102.md?p=9) as part of an international through movement involving ocean [transportation](/usc/49/10102.md?p=9) between the [United States](/usc/49/10102.md?p=10) and a foreign port;
  - (2) a customs [broker](/usc/49/13102.md?p=2) licensed in accordance with section 111.2 of title 19, Code of Federal Regulations, only to the extent that the customs [broker](/usc/49/13102.md?p=2) is engaging in a movement under a customs bond or in a transaction involving customs business, as defined by section 111.1 of title 19, Code of Federal Regulations; or
  - (3) an indirect air [carrier](/usc/49/13102.md?p=3) holding a Standard Security Program approved by the [Transportation](/usc/49/10102.md?p=9) Security Administration, only to the extent that the indirect air [carrier](/usc/49/13102.md?p=3) is engaging in the activities as an air [carrier](/usc/49/13102.md?p=3) as defined in [section 40102(2)](/usc/49/40102.md) or in the activities defined in [section 40102(3)](/usc/49/40102.md).
- (c) **Civil Penalties and Private Cause of Action.—** Any [person](/usc/49/13102.md?p=18) who knowingly authorizes, consents to, or permits, directly or indirectly, either alone or in conjunction with any other [person](/usc/49/13102.md?p=18), a violation of [subsection (a)](#a) is liable—
  - (1) to the [United States](/usc/49/10102.md?p=10) Government for a civil penalty in an amount not to exceed $10,000 for each violation; and
  - (2) to the injured party for all valid claims incurred without regard to amount.
- (d) **Liable Parties.—** The liability for civil penalties and for claims under this section for unauthorized brokering shall apply, jointly and severally—
  - (1) to any corporate entity or partnership involved; and
  - (2) to the individual officers, directors, and principals of such entities.

## Source credit

(Added Pub. L. 112–141, div. C, title II, § 32919(a), July 6, 2012, 126 Stat. 827; amended Pub. L. 114–94, div. A, title V, § 5508(a)(5), Dec. 4, 2015, 129 Stat. 1554.)

## Notes

### Editorial Notes

### Amendments

2015—Pub. L. 114–94 substituted section symbol for “SEC.” before section designation.

### Statutory Notes and Related Subsidiaries

### Effective Date of 2015 Amendment

Amendment by Pub. L. 114–94 effective Oct. 1, 2015, see section 1003 of Pub. L. 114–94, set out as a note under section 5313 of Title 5, Government Organization and Employees.

### Effective Date

Section effective Oct. 1, 2012, see section 3(a) of Pub. L. 112–141, set out as an Effective and Termination Dates of 2012 Amendment note under section 101 of Title 23, Highways.