The USDA has filed an administrative complaint against Smile Onion 7 Inc. for alleged violations of the Perishable Agricultural Commodities Act.
The company, operating from Maryland, allegedly failed to make payment promptly to 15 produce sellers in the amount of $1.017 million from October 2022 through December 2023, according to a news release.
Smile Onion 7 Inc. will have an opportunity to request a hearing. Should the 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, the release said. 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.
For more information, contact Corey Elliott, chief of the Investigative Enforcement Branch, at 202-720-6873 or PACAInvestigations@usda.gov.
