United States Department of Agriculture Restricts PACA Violators in California and Texas from Operating in the Produce Industry
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WASHINGTON, DC - Four fresh produce violators in California and Texas have recently been sanctioned by the United States Department of Agriculture (USDA). Under the Perishable Agricultural Commodities Act (PACA), the USDA imposed said sanctions for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards amounting to $99,653.
Direct from the USDA Agricultural Marketing Service:
These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from USDA.
The following businesses and individuals are currently restricted from operating in the produce industry:
PACA provides an administrative forum to handle disputes involving produce transactions. This may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it, as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders, may not be employed by or affiliated with any PACA licensee without USDA approval.
By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
For contact information and to read the release in its entirety, click here.
The United States Department of Agriculture is the United States federal executive department responsible for developing…