The U.S. Department of Agriculture (USDA) has filed an administrative complaint against American Fruit & Produce Corp. (American) for alleged violations of the Perishable Agricultural Commodities Act (PACA). The company, operating from Florida, allegedly failed to make payment promptly to eighteen produce sellers in the amount of $1,034,745 from March 2018 through October 2022.

American 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.

For more information, contact Corey Elliott, Chief, Investigative Enforcement Branch, at (202) 720-6873 or PACAInvestigations@usda.gov.

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, USDA resolved over 3,000 PACA claims involving approximately $147 million. PACA staff also assisted more than 5,900 callers with issues valued at approximately $163 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

Original source can be found here.