The Perishable Agricultural Commodities Act (PACA), enacted in 1930, is a law that authorizes the regulation of the buying and selling of fresh and frozen fruits and vegetables in interstate and foreign commerce while suppressing unfair and fraudulent trading practices. While many aspects within the produce industry have evolved, e.g., farming practices, food safety integration, and digital utilization to name a few, the laws in place to regulate the fresh produce sector haven’t necessarily kept pace with the 21st century.

With the industry’s increased use of e-commerce and value-added network platforms (e.g. iTrade and SPS Commerce) for supply chain management and electronic data interchange (EDI) transmissions, it is more important than ever to ensure shippers are complying with the PACA Trust provisions to ensure they’re protected. 

Western Growers Trade Practices Department has seen examples of members’ PACA Trust rights being jeopardized due to modernization.  For example, as we previously reported, sellers may unwittingly forfeit PACA Trust protection by leaving the below verbiage off each EDI transmission.

Western Growers is seeking confidential grower/shipper feedback on the challenges with PACA in today’s digital world, and suggestions for how the PACA regulations may be improved or updated. Please reach out to WG’s Trade Practices Manager, Bryan Nickerson, at 949.885.2392 or [email protected].