WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has filed an administrative complaint against RRD Produce Co. as part of its efforts to enforce the Perishable Agricultural Commodities Act (PACA). The California-based company allegedly failed to make a prompt payment to 17 produce sellers in the amount of $174,464 from May 2018 through December 2018. If the violations are repeated, it will be barred from engaging in PACA-licensed business or other activities without the approval from the USDA.

Direct from the USDA Agricultural Marketing Service:

RRD Produce Co. will have an opportunity to request a hearing. Should the 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, the 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 the USDA continues to support the fruit and vegetable industry.

For further information, contacts, and to read the press release in its entirety, please click the link here.

USDA's Agricultural Marketing Service