[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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 This section of the FEDERAL REGISTER contains documents other than rules 
 or proposed rules that are applicable to the public. Notices of hearings 
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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