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$1.2 Million Penalty for Distributing Imports of Unlicensed Goods

Tuesday, February 20, 2018
Sandler, Travis & Rosenberg Trade Report

The Environmental Protection Agency reports that a U.S. company will pay a $1.2 million administrative penalty as part of a consent agreement to settle charges that it sold and distributed imported pesticide products not licensed for sale in the U.S. The company will also develop an online training course on pesticide regulations and policies that will be available in English, Spanish and Chinese and must be successfully completed by all entities planning to sell pesticides through the company.

The EPA states that in August 2015, following a nearly year-long investigation, the agency issued a stop sale order under the Federal Fungicide, Insecticide, and Rodenticide Act that prohibited the company from selling illegal pesticide products that can easily be mistaken for blackboard or sidewalk chalk, especially by children. The EPA issued another stop sale order against the company in January 2016 after discovering that it was offering for sale certain unregistered or misbranded insecticide bait products.

After receiving these orders, the EPA states, the company immediately removed the products from its marketplace, prohibited foreign sellers from selling pesticides, and cooperated with the EPA during its subsequent investigation. The company has also created a robust compliance program comprised of a sophisticated computer-based screening system backed up by numerous trained staff.

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