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Diving overview:
- USDA last week Detailed compliance requirements It is for retailers serving SNAP consumers in states that have received waivers that limit purchases of certain items, such as candy or soda.
- Retailers have 90 days to comply with the state’s SNAP waiver once it goes into effect. After that period, non-compliant retailers will receive a warning and a 30-day period to correct the problem before being disqualified from accepting SNAP payments.
- FMI — The Food Industry Association says additional measures are needed for retailers and consumers. Resources and Explanations To avoid confusion about which items have state-level SNAP restrictions.
Dive Insights:
USDA’s updated guidance comes just days before the first five states implemented SNAP waivers on Jan. 1.
USDA has begun. SNAP Waiver Approval It’s unclear whether the 43-day government shutdown in May and the 43-day government shutdown in the fall affected the timing of USDA’s clarification on retailer compliance.
FMI said the 90-day grace period is “essential for retailers to identify and raise compliance issues with USDA,” but it is seeking more information to help retailers prevent noncompliance and reduce complaints from SNAP consumers who are unsure how the exemption affects their shopping.
FMI said it has asked USDA and states with SNAP exemptions to review retailer-developed lists of UPC-level restricted products to ensure accuracy so retailers can avoid non-compliance penalties. FMI said some states have already done so, but did not say which states.
FMI is also urging states and the federal government to create consumer-facing materials that can help SNAP consumers shop.
Eighteen states have SNAP waivers.
Clear guidance from the USDA states that SNAP purchases processed at the warehouse must comply with the customer’s EBT card restrictions. For retailers that need to ship across state lines, this can complicate the delivery fulfillment or in-store pickup process.
The new USDA guidance states that any removed retailer can reapply to receive SNAP payments again.
“(Our) members have additional questions and need assurance that any ‘involuntary withdrawals’ based on the second violation mentioned in the guidance will be limited to retailers willfully failing to comply with the restrictions, rather than an accidental error for one of the more than 21,000 products for which each state must specify a restriction code,” FMI said in a statement.
Currently in 18 states I received a SNAP exemptionAnd the USDA said it expects more states to follow suit. Waivers for Indiana, Iowa, Nebraska, Utah and West Virginia took effect Jan. 1.
