WASHINGTON, DC - As part of its efforts to enforce the Perishable Agricultural Commodities Act (PACA) and ensure fair trading practices within the U.S. produce industry, the Department of Agriculture (USDA) has imposed sanctions on three produce businesses for failing to meet their contractual obligations to the sellers of produce they purchased, in addition to failing to pay reparation awards issued under the PACA. 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 USDA. By issuing these penalties, 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:
The following businesses and individuals are currently restricted from operating in the produce industry:
- NS&J World Trading Corp., operating out of Miami, Florida, for failing to pay a $155,441 award in favor of a Puerto Rico seller. As of the issuance date of the reparation order, Silvia Penaranda was listed as the officer, director and major stockholder of the business.
- So Ono Food Products LLC, operating out of Honolulu, Hawaii, for failing to pay a $118,362 award in favor of a Washington seller. As of the issuance date of the reparation order, Richard C. Wheeler, Fresh Foods Hawaii, Inc., and Uzor U. Nwoko were listed as members of the business.
- Agro Torres Produce LLC, operating out of McAllen, Texas, for failing to pay an $11,323 award in favor of a Massachusetts seller. As of the issuance date of the reparation order, Osvelia Torres Chavez and Ricardo Martinez Moreno were listed as members of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in 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. 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 3,350 PACA claims involving more than $63 million. PACA staff also assisted more than 8,000 callers with issues valued at approximately $156 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
For further information, contacts, and to read the press release in its entirety, please check out the link here.
