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A federal court has signaled Pink Cheetah’s transparency case against TQL may proceed, raising questions about the legality of broker contract waivers under FMCSA’s §371.3 rule.
Pink Cheetah v. TQL: Court Opens Door for Key Transparency Claim
A federal court has signaled Pink Cheetah’s transparency case against TQL may proceed, raising questions about the legality of broker contract waivers under FMCSA’s §371.3 rule.
A federal court has left the door open for Pink Cheetah Express to continue its high-stakes transparency lawsuit against Total Quality Logistics (TQL), signaling that the case may proceed despite TQL’s push for dismissal.
Court Raises Concern Over Waivers
Pink Cheetah’s latest filing challenges the enforceability of contract waivers tied to 49 CFR §371.3, the federal broker transparency rule requiring disclosure of shipper payment records. In a footnote, the Court suggested that such waivers could be deemed unlawful if they allow brokers to sidestep federal obligations.
“It troubles the Court that regulated entities may attempt to evade regulatory obligations by embedding waivers in contractual agreements,” the opinion stated.
While Pink Cheetah’s current complaint focused narrowly on a November 2023 FMCSA order, the Court explained how the carrier could amend its claim to argue that all waivers of §371.3 are illegal and unenforceable. That possibility could keep parts of the case alive, even if some of TQL’s dismissal arguments succeed.
Background: Ice Cream Load Sparks David vs. Goliath Case
The case traces back to January 2023, when Pink Cheetah hauled a load of ice cream for $1,500 and requested TQL’s billing records to the shipper. Under §371.3, carriers have the right to review those records, but TQL denied the request, citing a 2019 broker-carrier agreement that included a transparency waiver.
An FMCSA investigation later forced TQL to hand over the documents, which showed the broker kept 44% of the shipper’s payment,well above the typical industry margin of 14–16%. Pink Cheetah then filed suit, seeking:
Release of unredacted records for 14 additional loads
Removal of the waiver clause from TQL’s contracts
Enforcement of FMCSA’s transparency order across its network
TQL countered with a motion to dismiss, arguing the case was filed in the wrong jurisdiction, Pink Cheetah lacked standing, and the waiver was valid.
Why It Matters for Brokers and Carriers
The dispute is unfolding just as FMCSA finalizes new transparency rules that would:
Ban waiver clauses in broker-carrier contracts
Require brokers to keep electronic transaction records
Mandate disclosure within 48 hours of carrier requests
Attorney Matthew Leffler, who has closely followed the case, noted in response to questions that “An FMCSA rule requires disclosure. Many brokers force carriers to sign a waiver of this disclosure. This court is questioning whether TQL should be able to require waiver.”
If Pink Cheetah succeeds, the case could reshape how brokers structure their contracts, potentially eliminating waiver clauses across the industry and creating new compliance risks for large brokerages.
Hello! I'm Jerome FreightCaviar! I’m into the politics of freight and the impact it will have worldwide. I'm always eager to learn more. Follow me on X @JeromeFreightC
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