Moving company penalized $62,000 for illegal operations in Washington

Docket Number: TV-200029

Moving company penalized $62,000 for illegal operations in Washington

Olympia, Wash. - An administrative law judge at the Washington Utilities and Transportation Commission assessed a $62,000 penalty against Lugg, Inc. for violating state transportation regulations.

The penalty comes after Lugg, Inc. failed to appear at a virtual hearing on Aug. 5, allowing the judge to assess a default penalty based on evidence filed by UTC staff investigators. They found that Lugg, Inc. was operating as a residential mover, and as a motor freight and solid waste carrier, without the required permits, citing 22 violations of state law. 

Staff began investigating Lugg’s activities in 2019 after discovering evidence of its operations and confirming that the company was not registered or authorized to operate in Washington.  

During the investigation, commission staff found:
• 10 violations for acting as a household goods carrier without a permit; 
• Eight violations of advertising service as a common carrier without a permit; 
• Four violations of operating as a solid waste carrier without a certificate of public convenience and necessity. 

A default penalty is authorized by state law when a party fails to appear at a hearing (RCW 34.05.440(2)).

Lugg, Inc. is a Delaware-based corporation that offers a digital platform that consists of a mobile application and website. Through this platform, customers enter into agreements for the transportation of household goods. 

The UTC is the state’s watchdog agency in charge of enforcing consumer protection and safety regulations for more than 250 residential moving companies operating within the state. Movers must charge approved rates, background check and drug test employees, maintain minimum insurance levels, and conduct regular vehicle safety inspections. The commission does not regulate interstate moving companies.?

The UTC also regulates passenger transportation companies; solid waste and recycling carriers; investor-owned electric, natural gas, and water utilities; landline telecommunications companies; and commercial ferries.