WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has filed an administrative complaint against Fresh Produce Inc. for alleged violations of the Perishable Agricultural Commodities Act (PACA). The company, operating from Texas, allegedly failed to make payment promptly to 15 produce sellers in the amount of $374,069 from May 2018 through August 2019.

Direct from the USDA Agricultural Marketing Service:

Fresh Produce Inc. will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry as a licensee for three years, or two years with the posting of a USDA-approved surety bond. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for two years, or one year with the posting of a USDA-approved surety bond.

The PACA Division, which is a part of AMS’ Fair Trade Practices Program, regulates fair trading practices of produce businesses that are operating subject to the PACA, including buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry.

In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. PACA staff also assisted more than 7,800 callers with issues valued at approximately $148 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

For more information, and to read the release in its entirety, click here.

USDA's Agricultural Marketing Service