97-32244. Information About Legislative Changes in Civil Penalties for a Misrepresentation or Misbranding Violation Under the Perishable Agricultural Commodities Act (PACA)  

  • [Federal Register Volume 62, Number 237 (Wednesday, December 10, 1997)]
    [Notices]
    [Page 65058]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-32244]
    
    
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    Notices
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    Federal Register / Vol. 62, No. 237 / Wednesday, December 10, 1997 / 
    Notices
    
    [[Page 65058]]
    
    
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    DEPARTMENT OF AGRICULTURE
    
    Agricultural Marketing Service
    [Docket No. FV97-357]
    
    
    Information About Legislative Changes in Civil Penalties for a 
    Misrepresentation or Misbranding Violation Under the Perishable 
    Agricultural Commodities Act (PACA)
    
    AGENCY: Agricultural Marketing Service, USDA.
    
    ACTION: Notice.
    
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    SUMMARY: In accordance with the Debt Collection Improvement Act of 1996 
    (Public Law 104-134), this document gives notice to the public of a 10 
    percent increase in the civil penalties found in Sec. 46.45 of the PACA 
    regulations which outlines the procedures for administering the 
    misrepresentation or misbranding provisions under section 2(5) of the 
    PACA (7 U.S.C. 499b(5)).
    
    DATE: December 10, 1997.
    
    ADDITIONAL INFORMATION: Contact Charles W. Parrott, Assistant Chief, 
    PACA Branch, Fruit and Vegetable Division, Agricultural Marketing 
    Service, U.S. Department of Agriculture, P.O. Box 96456, Room 2095-
    South, Washington, D.C. 20090-6456; telephone (202) 720-4180; fax (202) 
    690-4413.
    
    SUPPLEMENTARY INFORMATION: Public Law 104-134, the Debt Collection 
    Improvement Act of 1996, which amended the Federal Civil Penalties 
    Inflation Act of 1990 (Public Law 101-410), requires that all civil 
    monetary penalties be increased periodically to keep pace with 
    inflation. The first adjustment to a penalty may not exceed 10 percent 
    of the original penalty and applies only to those violations occurring 
    after the effective date of the increase, September 2, 1997.
        The PACA establishes a code of fair trading practices covering the 
    marketing of fresh and frozen fruits and vegetables in interstate and 
    foreign commerce. The PACA protects growers, shippers, distributors, 
    and retailers dealing in those commodities by prohibiting unfair and 
    fraudulent practices. The Department of Agriculture's Agricultural 
    Marketing Service (AMS) enforces the PACA.
        Under section 2(5) of the PACA, it is a violation a commission 
    merchant, dealer, or broker to misrepresent by word, act, mark, 
    stencil, label, statement, or deed, the character, kind, grade, 
    quality, quantity, size, pack, weight, condition, degree, or maturity, 
    or State, country, region of origin of any perishable agricultural 
    commodity received, shipped, sold, or offered to be sold in interstate 
    or foreign commerce. Provided the violations are not repeated or 
    flagrant, the dealer, commission merchant, or broker who violated the 
    misbranding provisions may admit to the violation, or violations, and 
    pay a monetary penalty in lieu of a formal proceeding for the 
    suspension or revocation of its license.
        By regulation published in the Federal Register (62 FR 40924) on 
    July 31, 1997, the maximum penalty was increased by 10 percent, from 
    $2,000 to $2,200, effective September 2, 1997. In addition to the 
    $2,200 maximum penalty, the PACA regulations (7 CFR 46,45(c)) set forth 
    the sanction policy that includes informal warning letters and lesser 
    monetary penalties that AMS may assess against a dealer, commission 
    merchant or broker for a misbranding violation, depending on the 
    seriousness of the violation and the number of previous violations 
    committed by the violator company. The amended schedule for informal 
    disposition of these violations is as follows:
    
    VIOLATION:                                                                                          DISPOSITION:                                        
                                                                                                                                                            
        1st................................  .........................................................  Warning Letter                                      
        2nd................................  .........................................................  Warning Letter                                      
                                                                                                                                                            
                                                               IF SERIOUS VIOLATION:                                 IF VERY SERIOUS VIOLATION:             
                                                                                                                                                            
        3rd................................  $220.....................................................  $275                                                
        4th................................  $385.....................................................  $550                                                
        5th................................  $550.....................................................  $1,100                                              
        6th................................  $1,100...................................................  $2,200                                              
        7th................................  $2,200...................................................  $2,200                                              
                                                                                                                                                            
    
        The informal disposition of misrepresentation violations is not 
    limited to seven occurrences and will be considered for further 
    violations.
    
        Dated: December 3, 1997.
    Robert C. Keeney,
    Deputy Administrator,
    Fruit and Vegetable Programs.
    [FR Doc. 97-32244 Filed 12-9-97; 8:45 am]
    BILLING CODE 3410-02-P
    
    
    

Document Information

Effective Date:
12/10/1997
Published:
12/10/1997
Department:
Agricultural Marketing Service
Entry Type:
Notice
Action:
Notice.
Document Number:
97-32244
Dates:
December 10, 1997.
Pages:
65058-65058 (1 pages)
Docket Numbers:
Docket No. FV97-357
PDF File:
97-32244.pdf