The action alleges that the company committed repeated and flagrant violations of the Perishable Agricultural Commodities Act. The company will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it could be barred from the produce industry for two years. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for one year and then only with the posting of a USDA-approved surety bond.
PACA establishes a code of good business conduct for the produce industry.
USDA is authorized to suspend or revoke a trader's license for violating the act.