WASHINGTON, DC - The U.S. Department of Agriculture (USDA) continues its efforts to enforce the Perishable Agricultural Commodities Act (PACA) and ensure fair trading practices within the U.S. produce industry. Recently, the USDA imposed sanctions on Cruisin’ On Inc., doing business as The Produce Network (Cruisin’) and Diamond Produce Wholesalers & Packers Inc. (Diamond) in Miami, Florida, for failing to pay $1,135,650 to the sellers of produce it purchased.
Direct from the USDA Agricultural Marketing Service:
These sanctions include barring the business and the principal operators of the business 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.
Cruisin’ and Diamond failed to pay $1,135,650 to four sellers for produce that was purchased, received, and accepted in interstate and foreign commerce from May 2016 to September 2017. This is in violation of the PACA. Cruisin’ and Diamond cannot operate in the produce industry until March 4, 2022, and then only after they apply for and are issued a new PACA license by the USDA.
The company’s principal, Joseph Thornton, may not be employed by or affiliated with any PACA licensee until March 4, 2021, and then only with the posting of a USDA-approved surety bond.
The USDA is required to publish the finding that a business has committed willful, repeated, and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. 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 a part of AMS’ Fair Trade Practices Program, 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.
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