Companies with checkered compliance histories under these ploys rotate through USDOT registration numbers, ownership structures and company names. (vitpho/Getty Images)
March 20, 2026 1:40 PM, EDT
Key Takeaways:
- FMCSA warned it will deactivate USDOT and Operating Authority numbers that are improperly transferred in an effort to curb chameleon carriers.
- The agency said chameleon carriers evade penalties by cycling through new identities and misusing USDOT registrations to obscure compliance histories.
- FMCSA plans to revoke numbers tied to unauthorized sales and continue broader crackdowns as federal officials advance proposals to strengthen carrier identity verification.
The Federal Motor Carrier Safety Administration in a move aimed at fighting chameleon carriers warned it will deactivate U.S. Department of Transportation or Operating Authority numbers that are found to have been improperly transferred.
“FMCSA will inactivate USDOT Numbers upon discovery that the number is being used by anyone other than the assigned legal person,” the agency stated in a March 13 bulletin titled, “DO NOT Sell, Purchase, or Lease a USDOT or MC Number.”
An Operating Authority (MC number) is required to perform specific for-hire transportation operations by a motor vehicle in interstate commerce. Operating Authority dictates the type of operation a company may run, and cargo it may carry. USDOT numbers are used as identifiers for motor carriers, brokers, freight forwarders and other entities.
The term “chameleon carrier” refers to trucking companies that are shut down and reopen under different identities to avoid penalties, enforcement actions, insurance consequences and public scrutiny, according to American Trucking Associations. Companies with checkered compliance histories under these ploys rotate through USDOT registration numbers, ownership structures and company names, ATA said.
FMCSA said it will initiate revocation proceedings for any USDOT number or Operating Authority if it discovers activity from an unauthorized person to sell, buy or lease that number in a manner inconsistent with a legitimate corporate transaction.
Corporations or Businesses
If an individual operates a corporation as John Doe Inc., that person can sell the company and transfer the USDOT number with the corporation. The new owners must immediately update FMCSA records. In a merger or acquisition, the number stays only if John Doe Inc. continues operating with that number as a corporation.
If the corporation dissolves under state law and operates under a different name or a new combined entity, that company needs its own USDOT number and the original corporate number should be deactivated.
Often, carriers only need to report ownership or officer changes. If a new entity is created, a transfer may be recorded or new authority may be required. FMCSA can revoke authority if carriers fail to apply for new authority or record a transfer.
Sole Proprietors
For sole proprietors, only the individual owner is allowed to use the USDOT number. If the business is sold, a buyer must obtain a new USDOT number.
If a sole proprietor sells the business, FMCSA may require the buyer to obtain separate operating authority or record a transfer of operating authority, depending on transaction details.
Chameleon Crackdown
This bulletin arrives after Transportation Secretary Sean Duffy and FMCSA Administrator Derek Barrs on Feb. 20 announced federal regulatory proposals aimed at toughening efforts to combat chameleon carriers. Duffy said the efforts aim to modernize and strengthen federal systems used to verify motor carrier identity.
Recently, Duffy announced a trio of suspected chameleon carriers were shut down for noncompliance issues.
