Acronyms (colloquial) PACA Public law 71-325 | Effective June 10, 1930 Statutes at Large 46 Stat. 531 | |
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Long title An Act to suppress unfair and fraudulent practices in the marketing of perishable agricultural commodities in interstate and foreign commerce. Enacted by the 71st United States Congress | ||
The Perishable Agricultural Commodities Act, 1930 (PACA) — Pub.L. 71–325 (June 10, 1930), as amended), codified as Chapter 20A (sections 499a through 499s) of Title 7 of the United States Code, is a United States law that authorizes the regulation of the buying and selling of fresh and frozen fruits and vegetables to prevent unfair trading practices and to assure that sellers will be paid promptly.
According to PACA, both produce sellers and buyers must pay fees for a license in order to do business, and these license fees are the source of funding for a trust program that resolves disputes and protects sellers from non-payment when buyers become bankrupt. Amendments to the Act in 1995 (Pub.L. 104–48, Sec. 3) include a 3-year phase out of the annual license fees for retailers and grocery wholesaler-dealers to be replaced by one-time fee. (7 U.S.C. § 499a et seq.).