The US Justice Department has imposed a huge fine of $41.7 million on discount retailer Family Dollar. This is actually the biggest fine ever imposed in a food safety case. Apparently, they had a big rodent problem at their distribution center in West Memphis, Arkansas.
The condition of the warehouses was so bad that products had to be recalled across the country.
Family Dollar decided to recall all prescription drugs, medical devices, cosmetics and food products shipped from their West Memphis facility to more than 400 stores in six states effective January 1, 2021.
The reason for this recall is that during the FDA inspection, they found a lot of substandard items such as live and dead rodents, rodent feces, urine, and nesting materials throughout the warehouse.
The company pleaded guilty to a misdemeanor charge of not maintaining its consumables in a sanitary condition.
Family Dollar said their employees had known about the pest problem since January 2021, yet they had been selling contaminated products for more than a year. After the warehouse was fumigated in January 2022, more than 1,200 rodents were taken care of.
Highest ever fine for food safety violation
The hefty fine of $41.7 million includes a criminal fine and forfeiture of $31.75 million as well as a civil payment of $10 million to the government.
As part of the plea agreement, Family Dollar’s parent company Dollar Tree Inc. must adhere to strict food safety regulations and undergo external auditing for the next three years.
Attorney Jonathan D. Ross emphasized that companies should be morally responsible for keeping contaminated products away from customers.
He couldn’t understand how Family Dollar allowed its distribution center in Arkansas to become infested with rodents and insects. They were aware of the problems, yet shipped unsafe and dirty products.
The FDA’s main concern is to ensure that consumers can be confident in the safety of products.
The boss of the FDA Office of Criminal Investigation in Kansas City, Special Agent Charles L. made clear that American consumers trust agencies like the FDA to keep our food safe. According to Grinstead, when companies try to skirt rules designed to protect public health, his team will not exempt them.
Patrick Runkle, senior litigation counsel and Civil Division prosecutor on the case, also said that companies should not prioritize “profit over the safety and well-being of American consumers.” He assured that intensive inspections will be carried out to ensure that citizens can count on safe food supplies.
Monitoring industry compliance.
In addition to the larger fines, Family Dollar and Dollar Tree will be required to begin regular inspections and reporting on how they handle food, drugs, cosmetics and medical devices in their warehouses and during transportation.
The government will monitor them for the next three years to make sure that they actually follow these changes.
Criminal punishment is not just about punishing past mistakes, it is also about preventing future mistakes and keeping food safe.