WASHINGTON, July 31, 2013 – The U.S. Department of Agriculture (USDA) has imposed sanctions on three produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
The following businesses and individuals are currently restricted from operating in the produce industry:
- Browns Farmers Mkt. Inc., operating out of Gainesville, Ga., for failing to pay a $19,840 award in favor of a South Carolina seller. As of the issuance date of the reparation order, Douglas F. Brown, Douglas R. Williamson, and Dennis E. Williamson were listed as the officers, directors, and/or major stockholders of the business.
- Fiesta Farmers Market Inc., operating out of Atlanta, Ga., for failing to pay a $37,804 award in favor of a Florida seller. As of the issuance date of the reparation order, Peter Ro was listed as the officer, director, and major stockholder of the business.
- Fresh Garden Produce Inc., operating out of Downers Grove, Ill., for failing to pay a $32,508 award in favor of a Florida seller. As of the issuance date of the reparation order, Eva A. Dominguez was listed as the officer, director, and major stockholder of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued 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 a 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 Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.
In the past three years, USDA resolved approximately 5,000 claims filed under PACA involving almost $96 million. This is just one more way USDA continues to support the fruit and vegetable industry.
For more information, contact John Koller, Chief, Dispute Resolution Branch at (202) 720-2890, by fax at (202) 690-2815, or by email at disputeresolutionsection@ams.usda.gov regarding this matter.
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