"STANDARDIZATION AND INSPECTION FRESH FRUITS AND VEGETABLES 3] 
SERVICE UNDER THE PERISHABLE AGRICULTURAL 
COMMODITIES ACT 
A discussion of standardization and inspection of fresh fruits and vegetables 
would not be complete without mentioning the service rendered by the Fruit 
and Vegetable Division in enforcing the provisions of the Perishable Agricultural 
Commodities Act. This law, familiarly known to the produce trade as the PAC 
Act or the PACA, was passed by Congress in June 1930 for the purpose of pre- 
venting unfair and fraudulent practices in the marketing of fresh fruits and 
vegetables in interstate or foreign commerce and to provide relief for those 
who suffer from such practices. Under the provisions of the act, all dealers, 
commission merchants, and brokers who handle fresh or frozen fruits or vege- 
tables which move interstate or from foreign countries are required to have a 
license in order to operate. The license fee is $15 per annum. The penalty for 
operating without a license is fixed at not more than $500 for each such offense, 
plus $25 per day for each day the offense continues. 
Some of the practices prohibited under the act are: 
1. Failure to account promptly and correctly and to pay in full for produce 
received on consignment. 
2. Failure to pay promptly the agreed purchase price of produce which com- 
plies with the contract terms. 
3. Rejection without reasonable cause of produce purchased or contracted to 
be handled on consignment. 
4. Making of any false or misleading statement, for a fraudulent purpose, in 
connection with any transaction. 
5. Failure to keep an adequate and correct set of records of the receipt and 
sale of produce. 
6. Failure of a seller, without reasonable cause, to deliver produce sold or 
contracted to be sold or consigned. 
7. Failure to pay earned brokerage or commission fees, and deficits sustained 
by commission merchants on produce handled on consignment. 
8. Failure without reasonable cause to perform any specification or duty, 
express or implied, arising out of any transaction. 
g. Misrepresentation (misbranding), by stamp, stencil, or label, of the kind, 
grade, quality, quantity, or State or country of origin of the commodity. 
to. Removing or changing in any way any card or tag, placed upon any con- 
tainer or railroad car under Federal or State authority, that bears a statement as 
to the grade, quality, or State of origin of the commodity contained therein. 
11. Changing or permitting the changing, without the consent of the inspector, 
of the contents of a load or lot of produce after it has been officially inspected. 
It is true that the PAC Act is regulatory. However, in administering it, the 
Fruit and Vegetable Division regards it as a service to the fruit and vegetable 
industry. It provides relief against unfair trade practices, and under it the 
Department will furnish assistance to anyone financially interested in a trans- 
action covered by the law, including unlicensed growers or shippers. When a 
complaint is submitted, the Department will, without charge, promptly com- 
municate with the other party involved, make such investigations as may be 
necessary, and endeavor to bring about an amicable informal adjustment of 
disputes. If necessary, it will take formal action, give each party to the com- 
plaint a chance to present his case fully, and determine the loss or amount of 
damages to be paid. If a violation is found to warrant such action, the Depart- 
ment will publish the facts and/or suspend or revoke the offender’s license. 
