USDA Restricts PACA Violators in Illinois, Maryland, New York, and Pennsylvania from Operating in the Produce Industry

WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses operating out of Illinois, Maryland, New York, and Pennsylvania. These four businesses were sanctioned for failing to meet their contractual obligations to the sellers of produce they purchased from and for failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA) totalling to the cumulative amount of $101,620.
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 the USDA. By issuing these penalties, the USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
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 the 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. The 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.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to 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.
The United States Department of Agriculture is the United States federal executive department responsible for developing…