Last Updated on: 11th March 2023, 06:19 pm

Protect Your Business: Understanding SNAP Violations and Consequences

For many retail businesses, federal food stamps represent a vital source of revenue, especially for small grocery stores, gas stations, and convenience stores. Without the authorization to accept food stamp benefits, your business could suffer considerably. The stakes are high for authorized retailers when it comes to complying with federal SNAP (Supplemental Nutrition Assistance Program) regulations. Violations can lead to permanent disqualification, civil fines, and even criminal charges in some cases. As the store owner, you’re responsible for violations, even if they’re committed by employees, and even if you had no knowledge of them.

Serious Violations of SNAP Regulations

One of the most serious SNAP program violations is food stamp trafficking, which is also one of the most common. Food stamp trafficking occurs when a store employee accepts EBT transactions in exchange for cash, provides cash change for EBT transactions, allows customers to pay with EBT benefits for ineligible items such as cigarettes, alcohol or nonfood purchases, or buys or sells EBT debit card numbers and PIN numbers. Suspicious behavior can trigger an investigation by the USDA’s Food and Nutrition Service and a potential referral to law enforcement for a criminal investigation.

The consequences of SNAP violations can range from temporary disqualification to permanent disqualification, eliminating a major source of revenue for your business. Substantial civil monetary penalties can also apply.

The No. 1 Way to Protect Your Business is Compliance

Proactive measures are the best way to prevent SNAP violations and minimize the consequences if they still occur. Having a compliance plan and following through on it could mean the difference between staying in business and losing your store. At Roberts Law Group, we can help you create a detailed compliance policy to safeguard your business against these and other SNAP program violations.

Your compliance plan should involve training your employees on the rules surrounding food stamp benefits and prohibited activities, keeping adequate training records, maintaining detailed logs of EBT transactions, prohibiting employees from engaging in suspicious EBT transactions, establishing a reporting process for employees to bring suspicious activities to your attention, outlining strong disciplinary measures for employees who fail to comply, and putting fraud detection measures into place.

Have You Received a SNAP Violation Letter?

Even with proper training, unscrupulous employees sometimes commit violations of food stamp program regulations. As the employer, you may have to answer for their behavior, but having properly trained employees can provide you with a much better defense if the USDA sends you a SNAP violation letter and threatens disqualification.

The USDA might send you a SNAP violation letter that contains hundreds or thousands of transactions believed to be fraudulent. It’s critical to respond within ten days to the letter, or the USDA will suspend or terminate your ability to accept EBT benefits. At Roberts Law Group, our SNAP violation attorneys can help you address this issue.

Understanding SNAP Violations

The SNAP program is enforced by the USDA and FNS, and each state has its own SNAP program. SNAP violations can result in disqualification from participating in EBT permanently, and small retailers are at risk of shutting down due to their dependence on EBT. The FNS actively investigates retailer compliance, analyzing retailer data, conducting investigations, processing cases, and fining any retailer found guilty. The federal government is also actively involved in prosecuting anyone who violates SNAP regulations.

Possible SNAP Violations

Retailers may be accused of trafficking and disqualified for accepting SNAP for nonfood items, intentionally using false information on the EBT application, total SNAP redemptions exceeding the sale of food, accepting SNAP from someone who isn’t entitled to the benefits, and offering store credit in exchange for EBT, among others.

For retailers such as gas stations, small grocery stores, and convenience stores, federal food stamps are a major source of revenue. However, accepting Supplemental Nutrition Assistance Program (SNAP) benefits as payment comes with high stakes. SNAP authorized retailers, especially owners of convenience stores and grocery stores, must comply fully with SNAP regulations to avoid permanent disqualification, civil fines, and even criminal charges.

Serious Violations of SNAP Regulations

Food stamp trafficking is one of the most common and serious SNAP violations. This involves store employees accepting EBT transactions in exchange for cash, providing cash change for EBT transactions, allowing customers to buy ineligible items such as cigarettes or alcohol with EBT benefits, or buying and selling EBT debit card numbers and PIN numbers. Any suspicious behavior can trigger an investigation by the U.S. Department of Agriculture’s (USDA) Food and Nutrition Service, potentially leading to a criminal investigation by law enforcement. The penalties for SNAP violations can range from temporary to permanent disqualification, which means that your store will no longer be able to accept EBT payments, and substantial civil monetary penalties can apply.

The No. 1 Way to Protect Your Business Is Compliance

As the store owner, you are 100% responsible for SNAP violations, even if they were committed by employees without your knowledge. Proactive measures are the best way to prevent SNAP violations and minimize their consequences. Creating a detailed compliance policy is critical, and training your employees on the rules surrounding food stamp benefits and prohibited activities is the bedrock of a solid compliance plan. Keep adequate training records, maintain detailed logs of EBT transactions, prohibit employees from engaging in suspicious EBT transactions, establish a reporting process for employees to bring suspicious activities to your attention, outline strong disciplinary measures for employees who fail to comply, and put fraud detection measures into place. Every cashier should know the USDA’s list of rules by heart before being allowed to accept EBT transactions, and employees should sign an acknowledgment of training before starting cashier duties.

Have You Received a SNAP Violation Letter?

Even with proper training, unscrupulous employees still sometimes commit SNAP violations. If you accept EBT payments, at some point, you might receive a SNAP violation letter containing hundreds or thousands of transactions that the USDA believes are fraudulent. You should immediately contact a law firm such as Roberts Law Group for a free consultation, as you have only 10 days to respond to the USDA’s SNAP violation letter. Failure to respond within 10 days will result in the suspension or termination of your ability to accept EBT benefits, which could be catastrophic for your business.

Understanding SNAP Violations

The SNAP program is enforced by the USDA and the Food and Nutrition Service (FNS), and there is an intense crackdown on SNAP violations and fraudulent EBT transactions. The FNS has a team of 100 analysts and investigators across the country who focus on ensuring SNAP compliance, analyzing retailer data, conducting investigations, processing cases, and fining guilty retailers. The federal government is also actively involved in prosecuting anyone who violates SNAP regulations. Retailers risk disqualification for accepting SNAP for nonfood items, intentionally using false information on the EBT application, having total SNAP redemptions that exceed the sale of food, accepting SNAP from someone who isn’t entitled to the benefits, or offering store credit in exchange for EBT.

What to Do After You’re Accused

Speak to a law firm immediately, as having proper legal help can be the difference between staying in business and going out of business. SNAP disqualification can have severe consequences, as the government has the authority to disqualify any business from participating