On Oct. 3, 2024, the U.S. Department of Agriculture (USDA) filed an administrative complaint against Berry People, LLC, of Hollister, Calif., alleging Berry People failed to make full payment promptly in the total amount of $3,519,748.79 to 19 produce sellers for multiple lots of produce purchased, received and accepted in interstate and foreign commerce, in violation of the Perishable Agricultural Commodities Act (PACA).
USDA and Berry People have since entered into a Consent Decision and Order finding that Berry People committed repeated and flagrant PACA violations by failing to pay the remaining $1,005,288.56 to multiple produce sellers. The Consent Decision and Order took effect on Aug. 1, 2025.
© USDA
Pursuant to the PACA, Jerald and Lyndsey Downs, the company's principals, may not be employed by or affiliated with any PACA licensee until Aug. 1, 2026 and then only with USDA approval and with the posting of a USDA-approved surety bond. All responsibly connected parties, including Jerald Downs, Lyndsey Downs and J&L Downs LLC, are also ineligible to be licensed under PACA until Aug. 1, 2027, and then only with USDA approval and with the posting of a USDA-approved surety bond.
USDA is required to publish a finding that a business has committed willful, repeated and flagrant PACA violations and impose restrictions against those principals determined to be responsibly connected to the business during the violation period. Those individuals, including sole proprietors, partners, members, managers, officers, directors or major stockholders may not be employed by or affiliated with any PACA licensee without USDA approval.
By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
The USDA also filed an administrative complaint alleging that Smile Onion 7 Inc. of Columbia, Md., failed to make full payment promptly in the amount of $1,017,919.25 to 15 sellers for multiple lots of produce, purchased, received and accepted in interstate and foreign commerce, in violation of PACA.
USDA and Smile Onion 7 then entered into a Consent Decision and Order in which Smile Onion 7 agreed to pay the unpaid produce sellers listed in Appendix A to the Complaint and to pay a civil penalty in the amount of $40,000. Smile Onion 7 has satisfied the terms of the Consent Decision and Order, and the finding that it committed repeated and flagrant PACA violations has been permanently abated without further process. The case has been closed.
Click here for an overview of companies that previously violated PACA.
For more information:
Peter Scarabelli
Investigative Enforcement Branch
USDA
Tel.: +1 (202) 720-6873
[email protected]
https://www.ams.usda.gov/