Fraud cannot be tolerated in organic, inside or outside of the United States. Anytime there is fraud anywhere in the organic system, it takes value out of the organic chain. The U.S. Department of Agriculture (USDA), certifiers, inspectors and organic businesses all have a shared role in protecting the integrity of the seal.
UPDATE: USDA National Organic Program published the Strengthening Orgnic Enforcement final rule on January 19, 2023.
The Strengthening Organic Enforcement (SOE) final rule supports the continued growth of the organic market and improves oversight at critical links in the supply chain. The new regulation represents the biggest change to organic regulations since the creation of USDA’s National Organic Program. The rule closes gaps in current organic regulations and builds consistent certification practices to prevent fraud and improve the transparency and traceability of organic products. Fraud in the organic system – wherever it occurs – harms the entire organic sector and shakes the trust of consumers in organic.
As a service to our members, OTA’s Regulatory Team has compiled a comprehensive summary analysis of the Strengthening Organic Enforcement Final Rule. This 25-page resource includes detailed summaries of the 14 topics covered in the final rule, highlights of the major changes from current practices, and notable differences from the 2020 Proposed Rule. Please reach out with any questions or support, and we look forward to working with our members to support the successful implementation of the final rule by the compliance deadline on March 19, 2024.
OTA MEMBERS: Download your member-exclusive training materials including a detailed 25-page summary analysis of the rule and recording of our regulatory briefing:
Public Summary: Strengthening Organic Enforcement Final Rule
Organic Fraud Prevention Solutions
One of the significant new requirements of the SOE rule addresses supply chain traceability and fraud prevention. Organic operations are now required to include a fraud prevention plan in their Organic System Plan that describes the monitoring practices and procedures used to prevent organic fraud and verify suppliers and organic product status. Members and non-members alike can enroll in our Organic Fraud Prevention Solutions program for step-by-step guidance to develop and implement an organic fraud prevention plan as mandated by SOE.
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Organic fraud rings have been busted for importing non-organic products from Eastern Europe and selling them at organic premiums. Now, the government is beefing up its oversight in the industry. NBC Nightly News interviewed OTA member Alexandre Family Farms along with association CEO Tom Chapman.
The USDA has released new guidelines for organic food labels in order to crack down on fraud and boost oversight amid a surge of popularity in the organic food market.
OTA called the updated rules “a major accomplishment” with its “far-reaching impacts on the organic sector,” adding, “the new regulation represents the biggest change to organic regulations since the creation of USDA’s National Organic Program.”
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- Cover Letter to USDA
- At-A-Glance Summary of OTA’s Positions and Recommendations (All Topics)
- Exemptions from Certification – Section #1
- Imports to the United States (Import Certificates) – Section #2
- Labeling of Nonretail Containers – Section #3
- On-site and Unannounced Inspections – Section #4
- Organic Certificates and Data Reporting – Section #5 & #7
- Continuation of Certification – Section #6
- Personnel Training and Qualifications – Section #8
- Oversight of Certification Activities – Section #9
- Accepting Foreign Conformity Assessments – Section #10
- Noncompliance, Mediation and Appeals – Section #11-15
- Grower Group Operations – Section #16
- Calculating Percent Organic Ingredients – Section #17
- Supply Chain Traceability and Fraud Prevention – Section #18
- Technical Corrections – Section #19
- Additional Amendments considered but not included in this Proposed Rule – Section #20
- Implementation Timeframe
The Organic Trade Association prepared a 10-page summary of the Strengthening Organic Enforcement Proposed Rule for our members. We also prepared a Member Comment Toolkit and a Summary of our Positions on each of the major topics.
The Organic Trade Association welcomes USDA’s efforts to boost the integrity of the global organic market through its Strengthening Organic Enforcement (SOE) Proposed Rule, soon to be published in the Federal Register. The SOE Proposed Rule is the largest single piece of rulemaking since the implementation of the National Organic Program (NOP) regulations. It will fundamentally transform the oversight and enforcement of organic production worldwide.
The Organic Trade Association, on behalf of its members, has been in the driver’s seat with Congress in the 2018 Farm Bill debate leading up to this historic rulemaking. Several proposed requirements are the outcome of the Organic Trade Association’s priorities and successful legislative work in the 2018 Farm Bill, such as closing the loophole on uncertified handlers by requiring certification and mandating electronic certificates for all imports. In addition to its advocacy for the Farm Bill provisions, in November 2018, the Organic Trade Association submitted comments to the USDA on our top priorities for boosting the integrity of the global organic market, identifying 15 areas where improvements are needed to strengthen the global organic control system.
The Organic Trade Association supports strong public and private sector measures to protect against fraud, deepen transparency across the organic supply chain and ensure consumer confidence in the Organic seal. Alongside updates to the regulation, the trade association has recently launched a member-driven, industry-wide Fraud Prevention Solutions Program that organic businesses can enroll in to deter and eliminate organic fraud.
In an otherwise comprehensive rule that seeks to boost consumer confidence and support continued growth of the $55 billion organic sector, the intent of USDA’s consideration of user fees and the proposed amendment to revise accreditation fees is unclear and inadequately explained. The Organic Trade Association looks forward to engaging further with the department for a clearer understanding.
Strengthening Organic Enforcement Proposed Rule Side-by-Side Comparison (current regulation to proposed rule) Fact Sheet: Safeguarding Organic Supply Chains
The USDA National Organic Program is planning to publish a major proposed rule on Strengthening Organic Enforcement in early 2020 (draft rule linked above). The proposed rule is expected to be largest single piece of rulemaking since the implementation of NOP regulations and will that will fundamentally transform the regulations in regard to oversight and enforcement.
This rule incorporates 2018 Farm Bill provisions to protect organic integrity, deter fraud, and bolster trust in the USDA organic label. It will do this by strengthening organic control systems, improving import oversight, and solidifying specific sections of the USDA organic regulations.
More specifically, the proposed rule is expected to:
- Minimize exemptions for organic handlers from organic certification
- Require use of electronic import certificates
- Enhance accreditation and certification oversight in the following areas:
- Robust inspections: unannounced inspections, inspector training, trace-back and mass balance audits, and grower groups
- Confirming organic status: nonretail labeling, standardized organic certificates, data reporting, certifier information sharing
- Overseeing certifiers: 90-day notification for new offices, equivalency reviews, adverse action process
In November 2018, the Organic Trade Association submitted comments to the USDA on our top priorities for boosting the integrity of the global organic market. The Organic Trade Association comments identified 15 areas where improvements are needed to increase the integrity of the global organic control system. Read the full OTA comments here.
The comments were filed in response to an interactive webinar hosted by NOP to inform the public of the organic integrity topic areas that will be addressed and to give organic stakeholders an early engagement opportunity to help inform the proposed rule.
Organic stakeholders are attacking fraud from many angles. The Organic Trade Association’s Organic Fraud Prevention Solutions Program, launched in 2019, is quickly gaining participation among OTA members. Read more about the program here.
Contact
Vice President of Regulatory and Technical Affairs (503) 798-3294 | Johanna Mirenda Farm Policy Director (202) 812-7704 |