FMC Updates Class Action Policies

The Federal Maritime Commission issued a policy statement today making clear it is an appropriate venue where private parties may bring class actions to resolve disputes covered by the statutes the agency administers.

The guidance yields important benefits to parties that might otherwise be hesitant to initiate legal actions at the FMC for fear of retaliation or because the amount of money in dispute may be less than the cost of litigation for an individual claimant. The availability of the class action mechanism will help create a more level playing field for private parties seeking protection from potentially unlawful conduct.

Today's announcement is a continuation of efforts by the Commission in recent years to reduce barriers for private party litigants seeking redress of potential Shipping Act violations. The Commission issued a policy statement in December 2021 making clear that shippers' associations and trade associations can file complaints on behalf of others alleging violations of the law. The Commission successfully implemented a process for Charge Complaints, as set out in the Ocean Shipping Reform Act of 2022, which provide individuals with a simplified and expedited way to challenge some invoices.

More than $3.5 million in fees have been voluntarily waived or refunded by common carriers through the Commission-administered Charge Complaint process since June 2022. Further, the Commission is ensuring the timely adjudication of the record number of pending proceedings that have been filed at the Commission in recent years by adding resources to the Office of the Administrative Law Judges.