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What happens if I act as a broker without broker authority?

Federal law allows a civil penalty of up to $10,000 per violation for knowingly authorizing or permitting unauthorized brokerage, and an injured party can recover valid claims. Companies and their officers and principals can be held liable together.

The statute is 49 U.S.C. 14916. It sets no separate amount for first and later violations; the cap is $10,000 per violation, owed to the U.S. government, and injured parties can recover their claims.

This is why the factors matter. Learn which side of the line your business sits on before you take money for a load.

Example. Ten loads in a month booked in a way that counts as brokering without authority is ten possible violations, up to $100,000 at the cap. Whether an act counts is a legal question for a lawyer.

General information, not legal advice. Rules change. Check the sources and talk to a transportation lawyer before you sign or start.

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Last reviewed Thu, Nov 12, 2026 · Where our data comes from