In a recent case filed on March 21, 2024, the U.S. Department of Agriculture (USDA) brought allegations against Safeway Fresh Foods LLC, based in Vineland, N.J., for failing to make full and prompt payment totaling $3,863,509 to 13 different sellers for various lots of produce. This violation of the Perishable Agricultural Commodities Act (PACA) led to a formal complaint being lodged against the company.

Following the filing of the complaint, USDA and Safeway Fresh Foods LLC reached a resolution through a Consent Decision and Order. In this agreement, Safeway Fresh Foods LLC agreed to compensate the unpaid produce sellers listed in Appendix A of the complaint and to pay a civil penalty amounting to $60,000. By fulfilling the terms of the consent decision and order, Safeway Fresh Foods LLC was able to avoid further repercussions, and the case was officially closed.

Additionally, USDA reported that Tabasco Produce LLC successfully satisfied a $3,008 reparation order issued under PACA for unresolved produce transactions. This Texas-based company, led by Francisco M. Gaspar, has met its financial obligations and is now allowed to continue operating within the produce industry without any restrictions.

However, USDA has also taken action against Kendall Frozen Fruits Inc., a California-based company, for an alleged PACA violation. The complaint alleges that Kendall Frozen Fruits Inc. neglected to make timely payments to two produce sellers, resulting in a total outstanding amount of $2,166,335 from May 2017 through July 2018.

Kendall Frozen Fruits Inc. will have the opportunity to request a hearing to address these allegations. If USDA determines that the company has engaged in repeated and flagrant violations, Kendall Frozen Fruits Inc. could face a suspension from the produce industry as a licensee for a period of three years, or two years with the submission of a USDA-approved surety bond. Additionally, the company’s principals may be restricted from employment or affiliation with any PACA licensee for a period of two years, or one year with the posting of a USDA-approved surety bond.

For a comprehensive overview of companies that have previously violated PACA regulations, interested parties can refer to the list available on the USDA website.

For further information on these cases or to inquire about similar matters, individuals can contact the following USDA representatives:

Corey Elliott (administrative complaint)
USDA
Tel: +1 (202) 720-6873
Email: corey.elliott@usda.gov
Website: www.ams.usda.gov

Penny Robinson-Landrigan (reparation order)
USDA
Tel: +1 (202) 720-2890
Email: penny.robinson@usda.gov
Website: www.ams.usda.gov

Investigative Enforcement Branch (complaint)
USDA
Tel: +1 (202) 720-6873
Email: investigative.enforcement@usda.gov
Website: www.ams.usda.gov

These contacts can provide assistance and guidance regarding any PACA-related issues or inquiries that individuals or businesses may have.