Can My Business Be Shut Down for SNAP Violations? Legal Options.
Learn what happens if your business is accused of SNAP violations, including trafficking or accepting ineligible items. Discover possible penalties like permanent or temporary disqualification, civil fines, and how to challenge USDA actions. Find legal defense strategies, compliance tips, and steps to protect your SNAP eligibility and revenue.
If your convenience store, grocery store, or other retail food business participates in the Supplemental Nutrition Assistance Program (SNAP), you know those food stamp dollars are vital to your bottom line. But you also know that SNAP comes with a thick rulebook - and the penalties for breaking those rules can be severe.
Getting accused of trafficking SNAP benefits or committing other violations is scary. You may be wondering, can my business be shut down? Will I lose my SNAP license forever? Do I have any way to fight back?
The stakes are high, so you need to understand your risks and your options. This article will walk you through:
- Common SNAP violations
- Penalties your business may face
- How to challenge SNAP disqualification
- Building a strong defense
What Activities Can Lead to SNAP Penalties?
First, it helps to understand what kinds of activities will get you in hot water with the feds. The Supplemental Nutrition Assistance Program (SNAP) is administered by the U.S. Department of Agriculture (USDA). This agency is responsible for authorizing retailers to accept SNAP benefits and for enforcing compliance.
Under SNAP rules, there are strict limits on what can be purchased with food stamp benefits. Only specific food and beverage items are eligible. Retailers cannot provide cash back on EBT cardpurchases. And they cannot traffic benefits - exchanging SNAP dollars for ineligible items like alcohol, cigarettes, or cash.
Unfortunately, not all retailers and their employees understand the rules. Here are some common SNAP violations that can lead to penalties:
- Trafficking benefits by providing cash back on EBT purchases
- Accepting SNAP benefits for ineligible items like alcohol, tobacco, or paper products
- Failing to properly train staff on SNAP rules
- Providing false information on SNAP retailer application
- "Indirect trafficking," such as buying inventory from a customer who purchased it on SNAP benefits
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