California Business Sanctions by USDA under PACA Lifted

The Perishable Agricultural Commodities Act (PACA) is an administrative forum that resolves disputes related to produce transactions. When contractual obligations for buying and selling fresh and frozen fruits and vegetables are not met, the USDA issues reparation orders for damages owed. Recently, D. DeFranco & Sons, conducting business as Parimar Inc., successfully fulfilled a $31,200 reparation order issued under PACA for unpaid produce transactions. This allows the Los Angeles, Calif., based company to continue operating in the produce industry.

The officers and major stockholders of the business, Gerald S. DeFranco, Paul F. DeFranco, and Richard J. DeFranco, are now able to be employed by or affiliated with any PACA licensee. However, if a business fails to pay PACA reparations ordered against them or individuals determined to be responsibly connected to the business at the time the order is issued are found guilty of violating PACA regulations, they may face suspension of their license or imposition of sanctions by the USDA.

Once a reparation order is completely satisfied and all outstanding unpaid awards are settled, USDA lifts employment restrictions on individuals connected to the business. For more information on PACA and dispute resolution, individuals can contact Penny Robinson-Landrigan at (202) 720-2890 or PACAdispute@usda.gov

By Riley Johnson

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