Release No.: 128-18
WASHINGTON, Sept. 21, 2018 – On July 13, 2018, Stockland Livestock Auction Inc. (Stockland), Spokane, Wash., waived its right to a hearing, entered into a stipulation agreement with the U.S. Department of Agriculture (USDA), and paid a penalty of $1,925 for alleged violations of the Packers and Stockyards (P&S) Act.
The USDA Agricultural Marketing Service’s (AMS) investigation of Stockland revealed Stockland allowed its auctioneer to purchase livestock to fill off-market orders for his personal account while providing auctioneering services. Section 201.56(c) of the regulations issued under the P&S Act prohibits market agencies selling livestock on commission from allowing their auctioneers to purchase livestock for their own account. AMS considers the practice of auctioneers purchasing livestock for their own account while also auctioneering to be an unfair practice in violation of Section 312(a) of the P&S Act. This practice puts at risk the bidding process as an open and fair price discovery mechanism.
The P&S Act authorizes the Secretary of Agriculture to assess civil penalties up to $28,061 per violation against any person after notice and opportunity for hearing on the record. USDA may offer alleged violators the option of waiving their right to a hearing and entering into a stipulation agreement to quickly resolve alleged violations.
The P&S Act is a fair trade practice and payment protection law that promotes fair and competitive marketing environments for the livestock, meat and poultry industries.
For further information about the Packers and Stockyards Act, contact Stuart Frank, Director, Packers and Stockyards Division, Fair Trade Practices Program, at (515) 323-2586, or by email at Stuart.Frank@ams.usda.gov.
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