USDA SNAP Penalties For Retailers
Retail is an important sector of the economy. People rely on retailers for access to the goods they need in life. Becoming a retailer can be deeply satisfying work. Of particular important to many people and communities are stores that provide access to food and other basic goods such as toiletries. These are things that people need to function.
One of the important things that any retailer needs to keep in mind as they operate each day are the forms of payment they are going to accept from customers. Over time, the American government has provided safety nets for the American people. One such safety net is what is known as SNAP. The Supplemental Nutrition Assistance Program is designed to make sure that every recipient can access the food they need to meet certain caloric requirements. SNAP is a widely used government program. Any retailer who agrees to accept this form of payment should be aware of the rules that govern it. Such regulations can be complicated and hard to understand. Violations may happen. All retailers should know what kind of SNAP penalties exist if such rules are violated. They also need to know the long term consequences of such violations.
A Letter
If there is an issue, the first thing that will happen is you’ll get a letter. This letter is a detailed list of any violations you have been accused of when it comes to accepting the SNAP program. The typical letter has a cover letter followed by a list of any violations that the government asserts has happened during your acceptance of SNAP users. The letter is usually quite specific. There will be a list of dates and times when the violations are alleged to have taken place. The letter will also indicate the scope of the violations including which rules the retailer has broken.
The letter is a very serious matter. It deserves immediate attention. Bear in mind that you have less than two weeks to respond to the contents. If you don’t respond in ten days, government officials will take action. That may include a temporary suspension of your ability to accept SNAP payments as well as the potential to be dropped from the program entirely. Store owners who do not respond are presumed guilty of the violations set forth in the letter. Any penalties government officials want to impose will be imposed at the end of this ten day period.
Potential Penalties
All retailers should understand what penalties they might face if they are in violation of SNAP rules. These penalties vary depending on the violation in question. For example, anyone who has bought or sold SNAP benefits of any kind in return for cash or other any other items can face permanent disqualification from the entire program. They can also face problems such forfeiture of the property they have received as a result of taking in SNAP payments. In addition, the retailer may also face fines that can be as much as a hundred thousand dollars.
Selling certain things in return for SNAP payments can also create problems for the retailer. Guns and controlled substances are looked on severely under SNAP regulations. A retailer who agrees to accept guns in return for SNAP payments may be subject to permanent disqualification from the entire program. The retailer can also be faced with huge, six figure fines.
Alcohol and tobacco sales are another example of the kind of items that are highly regulated under the SNAP program. Retailers are not allowed to accept SNAP payments for alcohol or tobacco. Retailers who are found guilty of this violation may be barred from the program for three to five years. They can also face what is known as a civil money claim as a result of selling these items in return for SNAP payments.
Other kinds of items also fall in this category. SNAP has very specific lists of items that are allowed for sale. Recipients are not allowed to purchase certain things such as prepared food and toiletries. All retailers should know this before they agree to participate in this program. They should have a list of items that are prohibited ready in a convenient place where store employees can examine it as they work.
Responding to Violations
Given the time bound nature of the SNAP violation letter, it is imperative to come up with an immediate plan to respond to any issues asserted in the letter. Keep in mind that officials can choose to take away the right to accept SNAP payments at any time. Effective counsel can help. They can help you examine the charges and see exactly what they mean. For example, you might have an employee who was unaware of the process of accepting SNAP payments and made a mistake. Another employee may have made a mistake and accidentally rung up more money. A response to such allegations can help you shake off these charges. That can also help you develop a strategy for avoiding such allegations in the future.
You have certain options. Any response should be swift. If a retailer is found guilty of violating laws, they also have the right to appeal any SNAP suspension. This is another area where quick action is vitally important. If you submit a response answering the allegations, officials may not accept your reasoning or your defense of your actions. In that case, you’ll get another letter indicating the agency’s response. You have another ten days to respond to the second letter. Having skilled counsel at your side can make a difference. They’ll help you fully respond to such allegations and navigate this deeply complicated area of law.
