USDA Settles a Case with Park Packing Company Inc. Resulting in a $2,750 Penalty

Date: 
Monday, May 7, 2018 - 2:00pm
Contact Info: 

Release No.: 046-18

WASHINGTON, May 7, 2018 – On Feb. 21, 2018, Park Packing Company Inc. (Park Packing), Chicago Ill., waived its right to a hearing, entered into a stipulation agreement with the U.S. Department of Agriculture (USDA), and paid a civil penalty of $2,750 for alleged violations of the Packers and Stockyards (P&S) Act.

The USDA Agricultural Marketing Service’s (AMS) investigation of Park Packing revealed on May 9, 2017, and July 11, 2017, Park Packing dated payment checks and stamped the postage meter within a timely manner.  However, 16 transactions were not mailed timely.  The payments averaged 1-10 days late per the postmark date on the envelope.  Payment for all livestock is due before the close the business day following the purchase and transfer of possession of the livestock.  Failure to pay when due is a violation of Section 409(a) of the P&S Act.

The P&S Act, 1921, (7 U.S.C. § 181, et seq.) authorizes the Secretary of Agriculture to assess civil penalties of not more than $11,000 per count against any person who violates the statute(s) cited above, after notice and opportunity for hearing on the record.

USDA enforcement rules provide a mechanism to quickly resolve violations of the P&S Act.  USDA may offer alleged violators the option of waiving their right to a hearing and entering into a stipulation agreement to quickly resolve alleged violations.

The P&S Act is a fair trade practice and payment protection law that promotes fair and competitive marketing environments for the livestock, meat and poultry industries.

For further information about the Packers and Stockyards Act, contact Brett Offutt, Fair Trade Practices Program, Packers and Stockyards Division, at (202) 720-7051, or by email at s.brett.offutt@ams.usda.gov.

Get the latest Agricultural Marketing Service news at www.ams.usda.gov/news or follow us on Twitter @USDA_AMS. You can also read about us on the USDA blog.

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