SNAP Violation Examples

Overview of SNAP Rules and Regulations

The Supplemental Nutrition Assistance Program (SNAP) contains a wealth of rules and regulations intended to ensure that needy households have necessary food. Violations of the SNAP rules undermine the purpose of the program. If you’re a retailer who serves SNAP recipients or you’re one yourself, you should take these regulations and any charges that you violated them seriously. Here are some of the ways that you might find yourself in violation of SNAP.

Buying and Selling SNAP Benefits

Trafficking is the practice of recipients and retailers swapping SNAP benefits and cash or other items not allowed with SNAP benefits. Typically, the recipient sells the EBT card or the PIN number to the retailer and receives cash for it. This allows the recipient to either pocket the cash or buy non-food items.

For recipients engaged in trafficking, criminal penalties can range from one to as much as 20 years in prison and fines spanning between $5,000 and $250,000, depending on the amount of money involved in the trafficking. Further, federal law treats trafficking as an “Intentional Program Violation” and disqualifies the recipient and the household from receiving SNAP benefits for 12 months, 24 months or permanently. The length is based on the number of prior IPVs.

A recipient may also traffick by selling the SNAP benefits for weapons, ammunition and drugs. In such a case, the disqualification lasts forever. Recipient traffickers may also have to repay to the government the cash or other value they received.

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Legal Scenario: What Would You Do?

Scenario

You own a small grocery store that accepts EBT cards, and a USDA investigator just informed you that your store is being investigated for trafficking — allegedly exchanging SNAP benefits for cash with several customers over the past six months. You were not personally involved, but a former employee may have been running the scheme during night shifts.

Can my store be permanently disqualified from SNAP even if I didn't personally authorize the trafficking, and what can I do to fight these charges?

Attorney's Answer

Under 7 U.S.C. § 2021 and 7 C.F.R. § 278.6, the USDA Food and Nutrition Service can permanently disqualify your store from SNAP participation for a first trafficking violation, regardless of whether you personally conducted the transactions — store owners are held responsible for employee conduct under the program. However, you have the right to request an administrative review within 10 days of receiving the charge letter, and if the penalty is upheld, you can file for judicial review in federal district court under 7 U.S.C. § 2023. In some cases, a civil money penalty may be imposed instead of permanent disqualification if you can demonstrate that you had an effective compliance policy and the trafficking was limited to a rogue employee. An experienced attorney can help you gather surveillance footage, transaction records, and employee documentation to build a strong defense before the administrative review deadline passes.

This is general information only. Contact us for advice specific to your situation.

Trafficking retailers often use the EBT cards to stock their inventories for resale. If you’re caught trafficking, it can permanently cost you participation in program unless the Food Nutrition Service (FNS), or the state agency, imposes a civil monetary penalty in place of disqualification. Criminal prosecution may also occur.

Buying Ineligible Items