Three produce businesses face license suspensions and operational restrictions for failing to meet contractual obligations and settle reparation awards under the Perishable Agricultural Commodities Act (PACA).
The U.S. Department of Agriculture (USDA) has taken decisive action against three produce businesses that failed to honor their contractual commitments and pay reparation awards under the Perishable Agricultural Commodities Act (PACA). The sanctions involve suspending the PACA licenses of these businesses and restricting their principal operators from engaging in PACA-related activities without USDA approval.
The affected businesses and their operators include Villalobos Produce Distributors Inc. from Chula Vista, California; Hialeah Tomatoes & Fresh Produce Inc. from Miami, Florida; and Go Fresh LLC from Dallas, Texas. Villalobos Produce Distributors Inc. was penalized for not paying a $16,910 award to a California seller, with Andrea Villalobos and Rogelio Chavez-Borbon identified as the main shareholders. Hialeah Tomatoes & Fresh Produce Inc. failed to pay a $95,610 award to a Florida seller, with Helen Oliveira and Jorge Gonzalez listed as the main shareholders. Go Fresh LLC was sanctioned for not paying a $3,000 award to a Texas seller, with George Carbajal being the sole member of the business.
PACA provides a platform for resolving disputes related to produce transactions, which can lead to reparation orders requiring the payment of damages by parties not fulfilling their contractual obligations.
According to the USDA press release, the department must suspend the licenses or impose sanctions on unlicensed businesses that fail to comply with PACA reparation orders. Furthermore, individuals connected to these businesses, such as major stockholders and directors, are barred from working with any PACA licensee without USDA’s approval.
These measures highlight USDA’s commitment to ensuring prompt and complete payment for produce, safeguarding the rights of both sellers and buyers in the market. By enforcing these penalties, USDA aims to maintain a fair and equitable produce industry.
