Dive Brief:
- The USDA last week detailed compliance requirements for retailers serving SNAP consumers in states that have received waivers restricting the purchase of certain items such as candy or soda.
- Retailers will have 90 days to comply with a state’s SNAP waiver once it takes effect. After that period, noncompliant retailers will receive a warning and 30-day period to rectify the issue before facing removal of their ability to accept SNAP payments.
- FMI — The Food Industry Association said retailers and consumers need additional resources and clarification to avoid confusion around which items have state-level SNAP restrictions.
Dive Insight:
The USDA’s updated guidance came just a few days before the first five states implemented their SNAP waivers on Jan. 1.
The USDA started approving SNAP waivers for states in May, and it’s unclear if the 43-day government shutdown in the fall impacted the timing of the USDA’s clarifications on retailer compliance.
While FMI said the 90-day grace period “is essential to helping retailers identify and raise compliance issues” with the USDA, it’s seeking more information to help retailers avoid noncompliance and reduce frustration for SNAP consumers who are unfamiliar with how the waivers will impact their shopping.
FMI said it has asked the USDA and states with SNAP waivers to review retailer-developed, UPC-level lists of restricted products to ensure accuracy so that retailers can avoid noncompliance penalties. FMI said that some states have already done so, but didn’t say which ones.
FMI is also urging states and the federal government to create customer-facing materials to aid SNAP consumers when they’re shopping.
18 states have received SNAP waivers
The USDA’s clarified guidance notes that SNAP purchases fulfilled from warehouses must comply with the customer’s EBT card restrictions. For retailers that have to ship across state lines, this could complicate their process for fulfilling orders for delivery or in-store pickup.
The new USDA guidance notes that any retailers who are removed can reapply to start accepting SNAP payments again.
“[Our] members have additional questions and need assurance that ‘involuntary withdrawal’ following a second offense mentioned in the guidance will be limited to retailers knowingly and intentionally not following the restriction, not an accidental error on one of 21,000 or more products that must be coded as restricted in each state,” FMI said in a statement.
Currently, 18 states have received SNAP waivers, and the USDA said it expects more states to follow suit. Indiana, Iowa, Nebraska, Utah and West Virginia’s waivers took effect on Jan. 1.
