USDA Office of Inspector General works closely with the Agriculture Marketing Service, other government agencies, and law enforcement to investigate and combat fraudulant activity involving the Perishable Agricultural Commodites Act (PACA).
Enacted in 1930, this Federal law promotes fair trade in the produce industry by regulating commerce, enforcing fair business practices, and establishing a trust to protect businesses dealing in fresh and frozen fruits and vegetables.
Common Fraud Schemes
Imposter Fraud (Business Identity Theft)
Scammers pose as established, legitimate companies to place large orders for produce. They use actual company names and personnel titles, and domain email addresses to deceive sellers. The fraudulent purchaser arranges for transport, diverts the shipment to an unknown location, and never pays for the product.
Phishing Scams
Criminals send fraudulent emails using the PACA name, often claiming a license has been suspended. These emails from non-government accounts (e.g., Gmail or paca.com) ask recipients to click links or open attachments that may contain viruses or lead to fraudulent payment sites. Report phishing scams to USDA Agricultural Marketing Service Dispute Resolution Branch.
Payment & Trust Violations
While not always intentional fraud, failing to make full, prompt payment is a violation of PACA. Buyers may establish a good business relationship by paying promptly for orders, then asking for credit or longer payment terms on future orders, and then fail to pay for product. As of March 2026, the USDA has filed complaints against multiple firms for failing to pay millions of dollars to produce sellers. Report violations to USDA Ato USDA Agricultural Marketing Service Dispute Resolution Branch.
Prevent PACA Fraud
Verify License Status
Use the PACA Search tool to confirm a buyer has an active license before trading. Verify phone numbers and email addresses.
Check Complaint History
The PACA Public Search provides data on the number of informal/formal complaints against a licensee.
Beware of Imposters
Some entities falsely represent themselves as licensed, making verification critical.
Protect Your Rights
Only licensed, reputable dealers provide PACA trust protection. Unlicensed brokers cannot protect your sales.
News and Resources
USDA Agricultural Marketing Service
PACA Investigative Enforcement Branch
Email: PACAInvestigations@usda.gov
Telephone: 202-720-6873
USDA HOTLINE
DOJ press release
Florida Man Arrested for Stealing More Than Half a Million Dollars of Onions and Potatoes
USDA Alerts Produce Sellers
Know Your Buyer