Tow Professional Podcast
Steering Through the Storm: Bill Johnson on Towing Industry Advocacy and Navigating FTC Scrutiny
Discover the undercurrents of the towing industry with incoming TRAA president Bill Johnson, navigating through the turbulent waters of the FTC's junk fee initiative and the recent inclusion of towing services in their investigation. Uncover the strategies for an industry under scrutiny, as we explore the significance of these developments and the essential role of unity and national associations like TRAA in steering the industry. Celebrating the legacy of Joanne Blyton's presidency, we probe into the active steps required to champion our cause and the indispensable function of a collective voice in Washington D.C.
Join us as we dissect the legislative challenges and advocate for clarity and fairness in the towing world. Bill Johnson offers a treasure trove of insights, from the intricacies of a recent meeting with the DOT to the creation of a task force aimed at reviewing towing fees. We're not just talking shop; we're building a community of professionals through monthly Zoom calls and a glossary of terms designed to enhance unity and professionalism. Learn the power of membership, discover the art of weaving detailed service narratives, and find out why a strong, united front is paramount in educating officials and the public about the complexities of towing services.
Discover the undercurrents of the towing industry with incoming TRAA president Bill Johnson, navigating through the turbulent waters of the FTC's junk fee initiative and the recent inclusion of towing services in their investigation. Uncover the strategies for an industry under scrutiny, as we explore the significance of these developments and the essential role of unity and national associations like TRAA in steering the industry. Celebrating the legacy of Joanne Blyton's presidency, we probe into the active steps required to champion our cause and the indispensable function of a collective voice in Washington D.C.
Join us as we dissect the legislative challenges and advocate for clarity and fairness in the towing world. Bill Johnson offers a treasure trove of insights, from the intricacies of a recent meeting with the DOT to the creation of a task force aimed at reviewing towing fees. We're not just talking shop; we're building a community of professionals through monthly Zoom calls and a glossary of terms designed to enhance unity and professionalism. Learn the power of membership, discover the art of weaving detailed service narratives, and find out why a strong, united front is paramount in educating officials and the public about the complexities of towing services.
Welcome one and all to Toe Professional Podcast. Remember, this is your podcast. It's for the pros that have a need to know, that are on the go, the true voice of the towing and recovery industry. I'm DJ Harrington, your co-host, better known as the Toe Doctor, and the real host of this program is the president and publisher of Toad Professional Magazine, a good friend of the industry and a dear friend of mine, darren Weaver. Darren, how are you this beautiful day?
Speaker 2:Man. I am fantastic, DJ. We got enough rain to drown the frog and it's beautiful. Now the sun's out and it's a great day. So you hit the nail on the head it's a great day to be alive and it's going to be a great podcast because we've got one of my favorites on here, a person that's passionate about the industry and all the workers in it and has been passionate about fighting for rights for our owners in the industry and going to the Hill and taking it on and advising our Senate and Congress of what things are needed in the towing industry, and that's Bill Johnson, and couldn't have a better guest on today. I'm excited about this one, dj.
Speaker 1:Yeah, bill Johnson. All of you guys know he's the head of the Johnson Group. Yeah, the new president of TRAA. So this is going to be a wonderful and we've had him on before. So without further ado, bill, I guess, darren, bill, I guess the first thing you should do is tell our listeners a little bit about your background, and then Darren can ask you the first question.
Speaker 3:Sure, DJ, and thank you to both of you for having me on here. I want to correct one thing, DJ. I'm not the president of the TRA yet Joanne's still the president, so I want to give her her due. So when I have nobody running against me, I guess the outcome is pretty much self-determined.
Speaker 1:Anyway, when does Joanne's term? Because she's been a great president. Let's tell all our listeners that Joanne has been a great president. When will your term start?
Speaker 3:I believe April 19th I'm not right around there Down in Florida will be announced. I think that's when the torch is handed over, for lack of a better term, but anyway, so I just wanted to thank Joanne and all the people that came before me. I agree the TRA is going into a rather difficult time, but we'll get into that a little further on here. A little bit about myself. I've been in the industry since I was 16 years old. I built up my business. I've got towing companies in Massachusetts and New York. Both my sons are involved with me, robert and Dave. We've got roughly 75 employees. We do towing, heavy truck repair, light car and truck repair, and we're pretty much diversified in a lot of other things. So anyway, this is not about me, this is about the industry. So, darren, I don't know what you got.
Speaker 2:Man, I'm going to start off with a fastball because I know everybody's been asking about this, so please give our listeners, bill, a brief overview as relates to these FTC junk fee initiatives.
Speaker 3:All right, all right, well that we have to go back to 2022, with the Biden administration passed the FTC, to do a deep dive into junk fees and as part of that procedure, they have to give a report to Congress to what they're going to do. And the whole junk fee was about airline tickets, uh, hotels, uh, vacations, used car warranties. It had nothing to do with towing. Towing was not mentioned. That was in 2022. November 9th of 2023, they gave another report. It was was like a 66-page report. Towing was not mentioned, was not on the landscape with the FTC.
Speaker 3:And what happened is Sue Lawless got appointed acting administrator to the Federal Motor Carrier to the DOT on January 26th, to the DOT on January 26th and on February 7th, the very last day, almost the last hour of the time to put a comment in, that's when this letter came from the DOT basically asking to have the towing industry included with the junk fees. And that's where we're kind of at. We need to remember that the letter, although it came from a federal agency, really carries the same weight as public comment. That's all that letter was was just a comment. It doesn't carry any weight as far as law, any other action, but it has created a firestorm within the industry and actually I'm hoping you know the old ad is you can't make an omelet without breaking an egg. That to the FTC will solidify the industry and wake the industry up, that we need to have a one voice in Washington DC and a consistent voice. But anyway, that's kind of like a brief look at the review of the whole FTC letter from the deal.
Speaker 2:Well, bill, I don't think you could have said it better. I think, like you said, I think when this was released, a lot of people just started scrambling, just not knowing every bit of the information, how it was going to apply, and I think that's why it's so important for our owners and industry not only to be involved with their local association, to have their feet on the ground and kind of have their ear to what's happening, but also, the biggest part, being a part of their national association, because that's where you find out what's going on, what's being done about it and so on, and I know TRAA has always been a fighting force for that, making sure they get the information out to their members. So certainly appreciate that. I'm going to turn this next one over to DJ.
Speaker 1:And Bill kind of answers some of this Bill, some of our listeners you know. On this other one, when Sue Wallace got involved in this, how can you explain to our towers and our listeners the discussion of junk fees with the FTC? I know there's. They're using them in the used car industry. That happens. I know they're having junk fees now even with mortgage companies and real estate fees and bank fees. So we got involved in all of those. Is that what you're saying?
Speaker 3:well, what I'm saying is that the dot, uh which I feel was a miscalculation on their part sent this letter to the ftc. You remember where it came from? The american trucking association, through the atri, did supposed, I guess a look at all the 50 states and their regulations and they basically kind of just did not give the proper information to the DOT, because I think it was about 10 days after this letter went to the FTC. Days after this, uh, this letter went to the ftc uh, myself, our uh, tremont strategies, our lobbyist for the tra and the legal firm. We met with the dot and we had a good discussion with the dot. You know, I want to backtrack a little bit.
Speaker 3:The tra took a lot of heat for not reacting right away or sending out, you know, a lot of emails on this for about a week and the bottom line is you know, when you show up to a fire I've said this before you show up to a fire you just don't start putting water on the smoke. You know, when you show up to a wreck, you just don't start pulling it without analyzing how it went in and how you're going to recover the vehicle. Don't start pulling it without analyzing how it went in and how you're going to recover the vehicle. So it's the same thing with with politics and with with lobbying and and legalities. You need to kind of do a deep dive to see where this came from. Uh, we reached out to uh larry minor, who is the I don't know his fancy name, to be honest, honest with you, but he works for the DOT and he came actually to speak at Hill Day and he goes. Well, what do you guys want me to talk about? He's talking to the lobbyists.
Speaker 3:And we said well, the elephant in the room the letter that got sent to the FTC. He was not aware of it. So here's the policy and regulation guy who was not aware of it. This was a political I don't want to say political hit. That makes sense. It was just politics. This letter got sent by Sue Lawless. She was in the position for two weeks.
Speaker 3:So you know, think about it. If you were in a position acting in ministry, are you going to send a letter out unless you're told to do it from above? So we're not 100% sure how far above it came from, but it came from above. And in fact, senator Warren from Massachusetts did a press release a day or two after stating, the Biden administration is trying to protect the truckers. So it really is just, it's just politics. I mean, that's, that's life, and that's why we have a lobbyist, that's why we pay a legal team and, um, you know, one of the discussions are, you know, having as incoming president, uh, I think I'm going to have to be shaking the the uh, the money tree more within the industry because, unfortunately, lobbyists and attorneys do not come cheap. And, um, this, this issue, is probably going to cost more money, uh for the, uh for the traa, with, with the lobbyists and with the attorneys it already has and it unfortunately needs to be funded. And, um, we need to make up that deficiency within the budget of the TRAA.
Speaker 1:Well, bill, I'm going to talk about that, and let's talk about that with our listeners. We're going to take a fast break and when we come back, listeners, I want you to tune in, grab a piece of paper, and when we get back, I want to ask Bill what we can do as listeners to help TRAA, and they're going to be in Florida at a booth. Why don't we go by and throw some money in a jar and help them? All right, let's take a fast commercial and we'll be right back.
Speaker 4:At Wrecker Rentals, we understand time is money. If your truck is out of service due to a mechanical issue or collision, we offer rentals to keep your business in business while your asset is down. We provide short-term rentals with a three-day minimum and long-term rentals of late-model light-duty wreckers and rollback tow trucks. We distribute trucks from Atlanta and Dallas to all parts of the Southeast and we can have it delivered in as little as 24 hours. For details on how to get your rental delivered ASAP, visit our website at rentareckercom and go to the documents page, or give us a call with any questions you might have at 770-898-1200. That's 770-898-1200. And we look forward to serving you.
Speaker 5:Attention. Tow heroes Level up with TowMate's new XR Series Wireless Tow Lights, now supercharged with long-lasting lithium technology. Boost your truck's visibility with PowerLink 2-wire light bars and strobes. Maximize impact while minimizing installation. They utilize your existing wiring. And don't miss our lifesaver. Cone-mounted warning lights your first line of defense on the roadside. Illuminate your path at wwwtomatecom. Slash dealers or dial 800-680-4455.
Speaker 4:tomate dependable, durable, dynamic for over 50 years, jordan has defined towing and recovery industry standards for performance, reliability and service. Jordan offers an extensive range of light, medium and heavy-duty wreckers, carriers and rotators. Each truck offers superior engineering for strength and stability, reliability and versatility to exceed the expectations of a demanding industry.
Speaker 1:Welcome back listeners. Of course you're listening to Toe Professional on the Go podcast. We do our best each and every week to bring you episodes like this one with Bill Johnson, the future president of TRAA. Now, I want you all to know we're available on Spotify, andora stitcher, iheart media, amazon or wherever you get your podcast. We are there. Just before the break I was the crazy guy asking bill about putting money in a jar. But bill, how's the best way for us to send money to traa to help fight this cause?
Speaker 3:well, dj, appreciate you the money in the jar, but unfortunately 10s and 20s won't help. We need to go up to the TRAAonlinecom and then find the there's a donate area for the lobbyist and donate directly to the lobbying fund. And it's very important. All the listeners out there join your state association join the federal association.
Speaker 3:The state association is the eyes and ears for the industry. Legislation that happens in your state is not created in a vacuum. It spreads from state to state and that's why we, as an industry, we need to be vigilant on bad legislation and we need to educate our elected and appointed officials as to the intricacies as it relates to the towing that makes all the sense in the world.
Speaker 2:Yeah, I couldn't say it better myself, dj. I think the biggest thing is it's one of those things you either invest now and give donations and help TRA fight for the rights, or you pay later when these unfair laws are passed and these guys are going after it from Jump Street to make sure that the industry is protected. So next question, bill what actions has TRA done since that letter from the DOT was sent to the FTC? Because I know all our listeners are going okay. So what's next? What happened?
Speaker 3:Well, I mentioned it briefly, we had a meeting with the DOT. I went down there. One of the discussions or one of the points we said is the the industry. They talk about junk fees and I gave an example of, uh, an incident that actually happened to me. You know, truck trucking company called up one of the load trans transferred from trailer to trailer. They said it only had eight to ten pallets. It was really 22 pallets. They said the trailers could be backed up to each other. So I priced it out for two laborers a pallet jack and and a dock plate. My guys get there and the one trailer, the axles are all twisted, the tires are off of it and it's 22 pallets. And so I said to the dot guy is what am I a predatory tower? Because now I got bad information and we had to go up in the bill? And he goes. Well, no, I guess.
Speaker 3:Well, that happens day in, day out. I go. It's just a simple tow, a light duty tow, like especially in my area. You know you get a call to tow a toyota or a honda. You get out there and the thing's like four inches out the ground. So then you got to get blocking and ramps and you know, so you don't damage the car. Yeah, this happens all the time and that's why I try to explain to them that you, you cannot give an exact quote up front. And then one of the people there said, well, if somebody's in an accident they should be able to get quotes. So you know, I said to him I goes.
Speaker 3:So the quick clearance, the I-95, the TIMS Traffic Management, that was all an initiative from you guys. Is that your plan to? You know, get rid of quick clearance? I goes. You know, I started rattling off the stats. You know, one tower every six days has killed this country. Forty percent of the police officers, of law enforcement injuries are struck by. You know, 20 percent of all accidents are secondary to an incident. I started rattling off those facts to him. I says is that your intent to get rid of quick clearance? They said no.
Speaker 3:They kind of took a step back and we asked for a task force to review the fees associated with towing and some of the issues as it relates to the towing. I sat there and I said I'm not going to say every single tower gives a uh, clear and concise bill. You know, that's that's. It just doesn't happen. There's bad apples, whether you're a doctor, a lawyer, attorney, you know tow guy, plumbers, carpenters, you know there's always an issue in any trade.
Speaker 3:But I said to him I goes, do you guys know how many toes happen in this country per year? They had no clue, I goes. I don't either, I goes, but it's got to be. You know, seven to ten million non-consensual toes to have in the year. This atri report is is basically based on 550 within a year's time or for longer, I go. So that's a statistical zero. So basically, what we ask for is a task force to review, uh, the, the industry and, of course, for the tra to be part of that. We're waiting for a comment from them, uh or I shouldn't say a comment affirmation that's going to be happening. Everything we hear is good, uh. But it's like I don't want to go out there and say we're definitely having a task force because that's that hasn't happened yet and there's a lot of.
Speaker 3:There's been a this small misinformed fringe group of towers in the industry been spreading out enough, you know, misconception as far as what's going on. You know they were saying that the FTC is going to regulate rates. That's not what the FTC does. They don't regulate rate, you know. So. It's even the legalities. The FTC probably Kenny and I even legally get involved with the towing industry because Congress has ceded the authority for non-consensual towing to the states and local authorities. Congress has ceded consensual as much as what they can to the DOT.
Speaker 3:So there's just so many misnomers out there and that's one of the things that my what I've been trying to do through the through, you know, with your guys help is kind of like quell all these these rumors out there, the rumor mills, and and that's what I'm trying to do it's whenever you get involved with lobbying and politicians, it it's always a very fluid situation. But that's one thing I think the TRA was very cautious. It's like I started saying you know, you just don't show up at a fire and start putting water on the smoke. You got to find out where the fires came from and that's what the TRA did. We took the time to find out what was going on so you can react and deal with it.
Speaker 2:Exactly, and when it comes to politics, correct me if I'm wrong, Bill, but nothing happens quickly, Correct. I mean, no matter if you have a fire, it takes a while to address it, see it, explain the situation. Walk that through channels. I mean that could take from a month to years, right?
Speaker 3:You're 100% correct with that, darren, and even the FTC with the current proposal they have for the junk fees. There's still comment periods. They're still six months out from doing anything and that's probably going to be challenged by the groups that are listed in it which towing was not listed in it. So there's even a a legal question of whether, even if the FCC could put towing underneath the junk freeze if they legally could, because it was never mentioned prior. That's number one, and then number two, two, it's like it's not even probably in the realm because they don't have congressional authority underneath the towing industry gotcha so and the FTC does not regulate an industry.
Speaker 3:If you notice what the FTC does, they, they will, they don't say to one airline does they don't say to one airline, well, you can only charge X for a ticket. What they say to the airline industry is you need to be concise on what your pricing is. You can't make it. You know. You have to let people know how many bags they can. Check that type of stuff. So it's all about bait and switch, and that's what the FCC gets involved with.
Speaker 2:Right, Well, let's do this, Bill. I want to step away to another quick break, some commercials for our wonderful sponsors and when we come back we'll hear more from Bill Johnson, soon to be president of TRAA. But let me tell you, folks, if Chicken Little's telling you the sky's falling, best way to know it's not be a part of TRAA and have the ability to know who's making the actions happen and what's going on on the hill. They'll keep you informed and you'll understand. It takes the anxiety out of how you run your company. Hang with us, We'll be right back for more with us, we'll be right back for more.
Speaker 4:Selling with Copart is quick and easy, convenient with B2B, interfacing, off-site sales, counter bidding, early tow and more. Copart takes the hassle out of selling your total loss vehicles. Copart sells vehicles on behalf of insurance companies, banks, finance companies, charities, fleet operators and dealers. For more information, go to copartcom.
Speaker 6:Towbookcom is the only way to go to manage all the vehicles you tow off the road. The number one platform in the industry, the cloud-based towing software, can handle all your needs Right from your phone, with support day and night. Visit towbookcom and give it a try.
Speaker 4:Recovery Billing Unlimited is an organization dedicated to teaching fellow towers how to become more profitable for the work they do. Recovery Billing Unlimited can teach you the proper tow business foundation, the proper way of writing acceptable recovery invoices, remediation of the accident scene to free you from future liability, and laws to help you get paid. These are just a few of the things covered when you attend a class from Recovery Billing Unlimited. For class or seminar information, visit recoverybillingunlimitedcom. Recovery Billing Unlimited making towers more profitable.
Speaker 1:Welcome back listeners. Of course you're listening to the one and only Tow Professional on the Go podcast. I can't thank you enough for making this one of the fastest-growing podcasts in the industry and I can't thank enough for having Bill Johnson to be on here from the Johnson Group, to be on here and kind of shedding a light on something that's been a discussion all throughout our industry. So, darren, I know this is coming up. So, bill, just before our break we were talking about it and what I want to ask you is moving forward. What actions does TRAA need to have done? Moving forward, what can our listeners do? What can, besides joining state associations, which we encourage every podcast to belong to your state association and then to belong to TRAA what are some of your tips that that's TRAA is doing?
Speaker 3:well, one of the you know. As you mentioned a couple times, I'm gonna be the incoming president of the.
Speaker 3:TRAA, and one of the things that I'd like to do is I want to start having monthly association, uh, zoom calls, video conferences. I'm not quite sure how it's going to work, but I'm probably going to do it. Like you know, once a month I'll have a set time with a video link and the association president or executive director or their designee can come on and we're just going to kind of have a state of the industry conversation. Uh, because, as I talked talked before is when legislation happens in in each state. It does not happen in a vacuum. You know, oida has been very active on a statewide level, state by state, trying, trying to get legislation passed.
Speaker 3:Another thing I want to work on is a glossary of terms for the association. There's a lot of issues. You know, what has brought this letter that went to the FTC is I'm truly hoping that it actually is good for the industry. You know, as I said before, you can't make an omelet without breaking an egg and I truly believe that this will kind of wake up the industry, that we need to be unified, we need to support our local state associations, we need to support the one national association and we need to speak with one voice in the industry.
Speaker 3:And the other side is I review a lot of bills, especially I reviewed more since this has happened, because I've been kind of the face of it here and the biggest problem I see is the towing companies not writing a proper narrative. You need to paint the scene with words. You need to paint a picture of the scene with words as to what happened. You just can't put down. You know three heavies and you know six laborers and have a bill for you know $18,000. You need to paint a picture. So if we want to be treated like professionals, we need to act like professionals and we, the industry, need to step it up. So all this takes money. So you know, I'd like to see more membership. I'd like to see more donations through the lobbying firm. I'd like to see more people involved with their state association. As I said before, you can go to traaonline, join, donate. It's much appreciated. Seek out your state association, join them and get involved. You know everybody.
Speaker 3:When I first became president of the Statewide Towing Association, I had a guy call me up and he goes. This was like 23, 24 years ago. The guy goes, it's just a click, I goes. You know something? I goes, you're right, it's just a click. I goes. You something? I goes, you're right, it is a click, but you can join. The click is open. Join association, yeah. So where do people think you know the benefits of being association are more than just lobbying. Where do you think if I need a toe and the part of massachusetts or any part of state, where do you think I go? I go to the TRA member list first. I go to the statewide towing in Massachusetts membership first before I seek out a partner to help me with one of my customers out of my area. So it does get you business and it's like anything else you only get what you put in. I mean, if you just send your money, don't participate, don't get involved, you are going to feel like you're not getting anything because you have to give a little to get something.
Speaker 1:I agree, 110%, bill, and that's the main thing that I hope all our listeners are getting out of this is that you need to participate in our state, darren and I. At all of our podcasts, we always encourage you to belong to your state and to belong to TRA, which is the National Association.
Speaker 2:So, darren, let me pass it on over to you, dj I tell you this has been a great one and, as always, bill johnson is a I mean just an encyclopedia of knowledge when it comes to towing the industry and how everything works. So, um, you know I can't say it much better, but I can say come on, guys, be a part of your local association. Just like bill said, some people call it a click, but you can be a part of that clique and I've seen people there's a story coming out so professional right now on Len Hurst that lost his entire business to an F3 tornado three years ago and his community that he was involved with in his association showed up, showed out, and he's stronger today because of it. Showed up, showed out, and he's stronger today because of it. Your national association folks, if you want to know what's going on there's your ear to the grapevine, right to Washington, what's happening Join your national association, support them so they can support you. You either pay today or you pay down the road. If you pay now and support TRAAA, they will take care of the things that could cost you down the road. So this one's been fantastic.
Speaker 2:And I want to say look for the latest issue of Tow Professional. We're covering Suburban with the Miracle on the Second Street Bridge, pulling that vehicle off the bridge. It was unbelievable tasks that our tow professionals do and as always, dear Heavenly Father, we thank you for our vendors in the industry. We thank you for folks like Bill Johnson that tackle things to make it easier for other owners in the industry. We ask for that passion for their heart for the industry that you bless him. You bless the vendors that believe in us with more knowledge to create products, to create more safety in this industry with wealth and health. And, dear Heavenly Father, protect every one of our men and women out there in towing, put a hedge of protection around them and bring them back to their families safe and increase their lives for the service heart they have. We ask this in your precious name, father, and until next time, keep listening to Tow Professional on the go podcast, your resource for the industry. We'll be here for you. Thanks again.