USDA files action against Texas company for PACA violations
USDA files action against Texas company for PACA violations
The U.S. Department of Agriculture has filed an administrative complaint against Freshquita Brands LLC. The company, operating from Texas, allegedly failed to make prompt payment to 14 produce sellers in the amount of $271,497.27 from November 2023 through September 2024, in violation of the Perishable Agricultural Commodities Act.
Freshquita Brands LLC will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry as a licensee for three years, or two years with the posting of a USDA-approved surety bond. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for two years, or one year with the posting of a USDA-approved surety bond.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry.