USDA Files Administrative Complaint Against Custom Fresh Cuts Inc. for Alleged PACA Violation

Wed. November 27th, 2019
- by Maggie Mead     

WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has filed an administrative complaint against Custom Fresh Cuts Inc.—based in California—as part of its efforts to enforce the Perishable Agricultural Commodities Act (PACA) and ensure fair trading practices within the U.S. produce industry. Custom Fresh Cuts Inc. allegedly failed to promptly make payment to ten produce sellers in the amount of $696,769 from November 2017 through June 2018. With this filing, the USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.

Direct from the USDA Agricultural Marketing Service:

Custom Fresh Cuts 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.

To read the USDA's press release in its entirety, click here.

USDA's Agricultural Marketing Service