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Being a retailer in the Supplemental Nutrition Assistance Program (SNAP) means that you can service low income customers. You might be surprised how this can sustain your business.
Selling to snap recipients comes with important legal duties designed to keep fraud out of the government benefits program. These obligations are not just for you. They extend to your managers and all of your staff members. If anyone in your business gets caught committing acts of fraud, the government may mail you a “trafficking Charge Letter.” Responding to it promptly and properly is paramount.
Having SNAP recipients carries important legal duties designed to avoid fraud in the food stamp program. These obligations run to you, your management and your employees. If your store gets caught in certain acts of fraud, you may receive a “trafficking Charge Letter.” Responding to it properly is critical.
| Party | Responsibility |
|---|---|
| Store Owner/Proprietor | Ultimate responsibility for compliance; faces disqualification |
| Managers | Supervise staff compliance; implement policies |
| All Staff Members | Must follow SNAP rules; need training |
| Cashiers | Handle EBT cards directly; must refuse trafficking attempts |
The Charge Letter shows up when agents of the Food Nutrition Service (FNS) or the state agency find that you have violated snap rules. The FNS often employs undercover purchasers from whom they get Information on which to base their charges. Undercover customers will approach your you are your staff members, pretending to be EBT customers to see if you or your employees break rules. They could either offer to sell their benefits to you or see if you ask to buy them. Some evidence of your violations can derive from EBT recipients who report you or data obtained from EBT records that are analyzed by computers to spot habits and patterns in the transactions.
| Investigation Method | How It Works |
|---|---|
| Undercover Purchasers | FNS agents pose as EBT customers; offer to sell benefits or see if you ask to buy them |
| Recipient Reports | EBT recipients report violations they witness at your store |
| Computer Data Analysis | EBT records analyzed by computers to spot habits and patterns in transactions |
| State Agency Investigations | State agencies monitor and investigate SNAP violations |
Trafficking can happen in the form of purchasing EBT benefits from your customers. The recipients accept cash from you and, in some cases, they may then buy products that they are not allowed to buy with their EBT card. Trafficking in snap benefits also includes using a recipient’s EBT card to purchase inventory and then reselling those items to other stores or customers. In some trafficking exchanges, a snap beneficiary may offer to sell you their benefits in exchange for firearms, bullets or illicit drugs. Grocers can permanently lose their ability to receive EBT benefits for participating in trafficking.
| Trafficking Type | What It Involves | Consequence |
|---|---|---|
| Purchasing EBT Benefits for Cash | You buy benefits from customers; they take cash and keep it or buy prohibited items | Permanent disqualification from SNAP program |
| Using Recipient’s Card for Inventory | Using EBT card to purchase inventory then reselling to other stores or customers | |
| Trading for Firearms/Ammunition | Accepting benefits in exchange for guns, rifles, bullets | |
| Trading for Controlled Substances | Accepting benefits in exchange for illicit drugs |
CRITICAL: Grocers can permanently lose their ability to receive EBT benefits for participating in trafficking.
Apart from trafficking, snap violations can include failing to post prices, charging EBT customers different (usually higher) prices than other customers, segregating EBT customers into specified checkout aisles and accepting EBT payments for nonfood items. Your customers are forbidden from using snap benefits to purchase beer, wine, liquor, cigarettes, other tobacco products, hot, prepared foods or meals at restaurants (Their are some exceptions in restaurants in some communities that offer reduced-price prepared meals to low-income or homeless people).
| Violation Type | What It Means |
|---|---|
| Failing to Post Prices | Not displaying prices clearly for items |
| Charging Different Prices | Charging EBT customers different (usually higher) prices than other customers |
| Segregating EBT Customers | Segregating EBT customers into specified/designated checkout aisles |
| Accepting EBT for Nonfood Items | Receiving EBT payments for items customers cannot buy with SNAP benefits |
The Trafficking Charge Letter that you receive will inform you, in addition to the reasons for the trafficking charge, of your options. The government may afford you the option of paying a civil monetary penalty instead of being permanently disqualified from the SNAP program altogether. You have just ten (10) days from the date of delivery of the letter to ask the FNS to impose the less drastic alternative. If you don’t reply at all, you waive your right to choose. Bear in mind that trafficking normally ends up in a permanent disqualification from participating in the SNAP program. This means you can never enter the program again.
| Option | What It Means | Impact |
|---|---|---|
| Civil Monetary Penalty | Pay fine instead of disqualification | Can continue in SNAP program; must meet compliance criteria |
| Permanent Disqualification | Banned from SNAP program forever | Can never enter program again; immediate effect |
CRITICAL DEADLINE: You have just ten (10) days from the date of delivery of the letter to ask the FNS to impose the less drastic alternative. If you don’t reply at all, you waive your right to choose.
To see if you are eligible for the less drastic penalty, the agency will take into account the extent you create or attempt to create a culture of obedience to snap legislation in your business. The criteria includes the way in which you respond to violations and what you have put in place or have done to make certain that employees remain compliant – before there can be a violation. Our SNAP violation lawyers can assist you in collecting the necessary evidence so you can meet the criteria for avoiding permanent disqualification.
FNS wants to see documented proof of your store policies for handling SNAP benefits. Do employees who violate snap rules face sanctions or dismissal? What do you do to correct mistakes or violations? What procedures do you have in place in your store for internally reviewing EBT transactions?
Your history of compliance is very relevant in the decision of whether you can avoid permanent disqualification. If it’s a first offense, you can persuade FNS to simply levy a monetary penalty instead of barring you entirely from the snap program. If the proprietors knew about or benefited from a previous trafficking violation, you are more likely to suffer disqualification. Also, avoidance of disqualification cannot occur if weapons, ammunition or controlled substances were part of the trading of EBT benefits. Extensive trafficking or circumstances that involve significant amounts of money are also highly likely to draw disqualification.
| Policy Area | What to Document |
|---|---|
| Employee Sanctions | Do employees who violate snap rules face sanctions or dismissal? |
| Violation Response | What do you do to correct mistakes or violations? |
| Internal Review Procedures | What procedures do you have for internally reviewing EBT transactions? |
| Training Programs | Documentation of staff education on SNAP rules |
| Compliance History | Record of prior compliance or violations |
| Factor | Favors Penalty | Likely Disqualification |
|---|---|---|
| Violation History | First offense – can persuade FNS to levy monetary penalty | Proprietors knew about or benefited from previous violation |
| Weapons/Drugs/Ammunition | N/A | Automatic disqualification if involved in trading |
| Extent of Trafficking | Limited, isolated incident | Extensive trafficking or significant amounts of money |
| Compliance Culture | Strong documented policies and training | No policies or training in place |
CRITICAL: Avoidance of disqualification cannot occur if weapons, ammunition or controlled substances were part of the trading of EBT benefits.
To be eligible for the penalty option in lieu of disqualification, you need to show the FNS that you took the steps to train your staff about the snap rules. This includes your managers and all of your employees whose position and duties include handling EBT cards, such as cashiers. Your training program should include detailed written instructions against accepting EBT benefits for firearms, ammunition, or controlled substances.
In this respect, documentation of the training programs or education is crucial. Your logs must show that the employees were trained by you on snap rules before the violation occurred. Your files must clearly show dates of hire and training of each staff member. As a step in your training program, you could even furnish a copy of publications or regulations from FNS to each new hire. Get a signature form each one acknowledging receipt of the bocklet and any other written materials.
| Requirement | What You Must Do |
|---|---|
| Who Must Be Trained | Managers and all employees whose duties include handling EBT cards (especially cashiers) |
| Training Content | Detailed written instructions against accepting EBT benefits for firearms, ammunition, or controlled substances |
| Timing | Employees must be trained before violation occurred |
| Documentation | Logs showing training dates; files showing dates of hire and training |
| Materials | Copy of publications or regulations from FNS to each new hire |
| Acknowledgment | Get signature from each employee acknowledging receipt of materials |
CRITICAL: Documentation of the training programs or education is crucial. Your logs must show that the employees were trained by you on snap rules before the violation occurred.
After replying to the Charge Letter, FNS will decide whether to move forward with the permanent disqualification or charge you the monetary fine instead. If they opt for the former, your disqualification takes effect right away. Once this happens, you won’t be able to participate in SNAP even if you go through with an appeal through administrative or judicial review. In the event that either forum yields a reversal of the disqualification, FNS does not reimburse you for the sales you lost during the review period.
On the other hand, if you are eligible for the civil monetary penalty and you appeal the trafficking charges, you may continue to receive EBT funds for your customers’ purchases until the reviews are complete.
| FNS Decision | Immediate Effect | If You Appeal |
|---|---|---|
| Permanent Disqualification | Takes effect immediately | Cannot participate in SNAP even during appeal; no reimbursement for lost sales if reversed |
| Civil Monetary Penalty | Must pay fine | May continue to receive EBT funds during appeal |
Again, you have a mere ten (10) days after FNS delivers its written decision to request an administrative review. An FNS reviewer will determine whether to uphold the action or reverse it.
If the FNS reviewer maintains that you should be disqualified or should be subject to other penalties for trafficking, your next option is judicial review. You must request this by filing a lawsuit in state court or federal district court within thirty (30) days after the reviewer’s decision is served on you. Our lawyers can help you to start the lawsuit and prepare for the trial.
| Stage | Deadline | What Happens |
|---|---|---|
| Initial Response to Charge Letter | 10 days from delivery | Request civil monetary penalty option; waive right if don’t respond |
| FNS Decision | After reviewing your response | FNS decides: permanent disqualification or monetary fine |
| Administrative Review Request | 10 days after written decision | FNS reviewer determines whether to uphold or reverse |
| Judicial Review (Lawsuit) | 30 days after reviewer’s decision | File lawsuit in state court or federal district court |
| Deadline | Action Required |
|---|---|
| 10 Days | Request civil monetary penalty option (or waive right) |
| 10 Days | Request administrative review after FNS decision |
| 30 Days | File lawsuit for judicial review after administrative review decision |
Bear in mind that trafficking normally ends up in a permanent disqualification from participating in the SNAP program. This means you can never enter the program again.
A Charge Letter for snap trafficking is an extremely grave threat to your business. The deadlines to act run quickly and require prompt, thorough and decisive action on your part. Call one of our snap attorneys for help navigating through this process.
Getting a Charge Letter for trafficking is a very serious threat to your business. The deadlines to take action run quickly and require prompt and decisive action on your part. Contact our snap attorneys for guidance through the process.
| Service | How We Help You |
|---|---|
| Collect Evidence | Assist in collecting necessary evidence to meet criteria for avoiding disqualification |
| Document Compliance | Help marshal proof of training programs and compliance policies |
| Meet Deadlines | Ensure you meet critical 10-day and 30-day deadlines |
| Navigate Process | Guide through Charge Letter response, administrative review, judicial review |
| File Lawsuit | Properly start lawsuit and prepare for trial if needed |
| Protect Your Business | Fight to avoid permanent disqualification |
A Charge Letter for snap trafficking is an extremely grave threat to your business. The deadlines to act run quickly and require prompt, thorough and decisive action on your part.
Getting a Charge Letter for trafficking is a very serious threat to your business. The deadlines to take action run quickly and require prompt and decisive action on your part. Contact our snap attorneys for guidance through the process.
Call one of our snap attorneys for help navigating through this process. We can assist you in collecting the necessary evidence so you can meet the criteria for avoiding permanent disqualification. Our lawyers can help you to start the lawsuit and prepare for the trial if needed.
To see if you are eligible for the less drastic penalty, the agency will take into account the extent you create or attempt to create a culture of obedience to snap legislation in your business. The criteria includes the way in which you respond to violations and what you have put in place or have done to make certain that employees remain compliant – before there can be a violation.
Your participation as a retailer in the Supplemental Nutrition Assistance Program (SNAP) allows you to serve low income customers. It also can sustain your business. Don’t let a Charge Letter destroy your business. Act immediately, document your compliance efforts, and get experienced legal help to navigate this complex process.
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