KDLO Enterprises Inc. Appeals Citation, Sanctions Against Company Stayed

AMS No. 016-12

Nadine Wilkins, (202)720-8998Nadine.wilkins@ams.usda.gov

WASHINGTON, Jan. 18, 2012 – A U.S. Court of Appeals for the 9th Circuit filing stays sanctions against KDLO Enterprises Inc.

The U.S. Department of Agriculture (USDA) prematurely cited the Gig Harbor, Wash., company for violations of the Perishable Agricultural Commodities Act (PACA). KDLO Enterprises Inc. has challenged the decision. Sanctions against the company’s principals, Kevin and Donna Mae Pederson, will be held in abeyance until the appeals court ruling is finalized.

The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce companies operating subject to the PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. The USDA is authorized to suspend or revoke a company’s license for violations of the PACA. All oversight of actions related to the PACA are conducted by the AMS, an agency within the USDA.

In fiscal year 2011, USDA resolved approximately 2,000 claims filed under the PACA involving $31 million in their continued efforts to serve and protect the fruit and vegetable industry from unlawful trade practices.

For further information, contact Phyllis Hall, Chief, Investigative Enforcement Branch, at (202) 720-6873, by fax at (202) 720-8868, or by email at InvestigativeEnforcement@ams.usda.gov.

Get the latest Agricultural Marketing Service news at http://www.ams.usda.gov/news or follow us on Twitter @USDA_AMS.

USDA is an equal opportunity provider, employer and lender. To file a complaint of discrimination, write: USDA, Director, Office of Civil Rights, 1400 Independence Ave., S.W., Washington, D.C. 20250-9410 or call (800) 795-3272 (voice), or (202) 720-6382 (TDD).