SNAP Trafficking Charge Letter: What Retailers Need to Know

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.

Understanding Your Legal Obligations as SNAP Retailer

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.

Who is Responsible for SNAP Compliance

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

Why Did I Receive a Trafficking Charge Letter?

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.

How FNS Discovers Violations

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

What Constitutes SNAP Trafficking?

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.

Types of SNAP 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.

Other SNAP Violations

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).

Common SNAP Violations Beyond Trafficking

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

Items Customers Cannot Purchase with SNAP Benefits

• Beer
• Wine
• Liquor
• Cigarettes
• Other tobacco products
• Hot, prepared foods
• Meals at restaurants (except certain localities that offer reduced-price meals to low-income or homeless people)

How You Need to Respond

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.

Your Two Options

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.

Eligibility for Civil Monetary Penalty Option

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.

Policy Standards for Compliance

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.

What FNS Wants to See: Documentation Requirements

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

Factors Affecting Disqualification vs. Penalty Decision

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.

Compliance Training

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.

Training Requirements

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.

Creating Effective Training Documentation

• Dates of hire for each staff member
• Dates of training for each staff member
• Copy of FNS publications or regulations given to each new hire
• Signed acknowledgment forms from each employee
• Training logs showing education occurred before violation
• Written instructions specifically prohibiting firearms, ammunition, controlled substances trades

After the Charge Letter

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.

What Happens After FNS Decides

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

The Review Process

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.

Timeline for Appeals Process

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

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Critical Deadlines You Cannot Miss

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

Understanding Permanent Disqualification

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.

What Permanent Disqualification Means

• Forever banned from SNAP program
• Cannot re-enter program at any future time
• Takes effect immediately if FNS opts for disqualification
• Cannot participate during appeals - even if ultimately reversed
• No reimbursement for sales lost during appeal period
• Destroys business that relies on SNAP customers

Contact Our SNAP Attorneys

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.

How Our SNAP Attorneys Can Help

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

Key Takeaways About SNAP Trafficking Charge Letters

• SNAP retailers have legal duties extending to managers and all staff
• "Trafficking Charge Letter" arrives when FNS finds violations
• Trafficking includes: purchasing EBT benefits for cash, using cards for inventory, trading for weapons/drugs
• Can permanently lose ability to receive EBT benefits
• FNS uses undercover purchasers who pose as EBT customers
• Computer analysis of EBT records spots patterns and habits
• Other violations: not posting prices, charging different prices, segregating customers, accepting EBT for nonfood
• Customers cannot buy: beer, wine, liquor, cigarettes, tobacco, hot foods, restaurant meals (with exceptions)
• Two options: civil monetary penalty OR permanent disqualification
• CRITICAL: 10-day deadline to request penalty option or waive right
• Permanent disqualification means never enter program again
• Compliance criteria: culture of obedience, response to violations, employee compliance measures
• First offense can persuade FNS to levy penalty instead of ban
• Automatic disqualification if weapons, ammunition, or controlled substances involved
• Training requirements: managers and cashiers must be trained BEFORE violation
• Documentation crucial: dates of hire, training dates, signed acknowledgments
• 10-day deadline to request administrative review after FNS decision
• 30-day deadline to file lawsuit for judicial review
• If disqualified: immediate effect - cannot participate even during appeal
• If penalty: can continue receiving EBT funds during appeal
• SNAP attorneys can help collect evidence, meet deadlines, file lawsuit

The Serious Threat to Your Business

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.

Why This is So Serious

• Can lose SNAP authorization forever - business dependent on SNAP customers may fail
• Deadlines are extremely short - 10 days to respond or lose option
• Permanent means permanent - cannot re-enter program at any future time
• Immediate effect if disqualified - lose revenue right away
• Cannot operate during appeal if disqualified
• No reimbursement even if ultimately win appeal

Don't Wait - Act Immediately

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.

What Makes Your Case Strong

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.

Building Your Defense

• Documented store policies for handling SNAP benefits
• Employee sanctions or dismissal for violations
• Procedures to correct mistakes
• Internal review procedures for EBT transactions
• First offense (no prior violations)
• Comprehensive training program with documentation
• No weapons, ammunition, or drugs involved
• Limited extent of trafficking (not extensive or large amounts)

Protecting Your Right to Participate in SNAP

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.