Missouri WIC and Nutrition Services Retailer Manual

A. Retailer violations 

Retailer violations may be intentional or unintentional. The Missouri WIC program may refer retailers who commit fraud and/or abuse of the WIC program to federal, state or local authorities for prosecution under applicable statutes. The WIC program has two levels of violations: those that result in Missouri state sanctions and those that result in federally mandated sanctions. 

Imposed sanctions may include warning letters, corrective action plans, mandatory training sessions, administrative fines, monetary claims, civil money penalties (CMPs), suspensions, terminations, disqualification or any combination of sanctions. A retailer committing fraud or abuse of the WIC program is liable for prosecution under applicable federal, state and local laws.

A retailer that has willfully misapplied, stolen or fraudulently obtained WIC program funds shall be subject to a fine of not more than $25,000 or imprisonment for not more than five years, or both, if the value of the funds is $100 or more. If the value is less than $100, the penalties are a fine of not more than $1,000 or imprisonment for not more than one year, or both, per 7 CFR 246.12(h)(3)(xxi). 

The Missouri WIC program must provide written notice of any sanctions imposed against a retailer. The notice must specify the sanction being imposed, its effective date and the reason for the sanction.  

For more information, refer to WIC retailer policy 6.2 Retailer Violations and exhibit 6.1A Retailer Sanction Schedule. 

B. Corrective action plan (CAP) 

When a violation requires corrective actions, the retailer shall prepare a CAP. The CAP must address the area of violation and may include training to educate retail staff on WIC program policy and procedures, customer service or a plan to address stocking issues. The plan must include a timeline for addressing the issue and a follow-up plan to ensure requirements are completed. The CAP must be submitted within the time frame stated in the monitoring letter. Failure to submit the required CAP will result in an immediate $50 fine without further notice or warning. A $100 fine will be issued for any subsequent failure to submit a CAP. Failure to submit the required CAP is a state violation. 

C. CMP in lieu of disqualification 

The Missouri WIC program will assess a CMP in lieu of a retailer’s disqualification only if the disqualification would result in inadequate participant access as defined by the Missouri WIC program. The CMP amount is calculated as ten percent of a retailer’s average monthly WIC redemptions multiplied by the number of months the retailer would have been disqualified. A retailer’s average monthly WIC redemption is based on the monthly WIC redemption for the previous six months. 

D. CMP in lieu of permanent disqualification 

For a violation that warrants permanent disqualification (Federal Class “A” #1), the amount of the CMP will be determined by 7 CFR 3.91(b)(3)(vi). If multiple violations are found during a single investigation, the Missouri WIC program may impose a CMP for each violation. 

E. Termination for noncompliance 

WIC Retailer Agreements may be terminated due to a retailer’s noncompliance with the WIC program selection criteria and/or the WIC Retailer Agreement. Examples of noncompliance that may result in termination of the WIC Retailer agreement include, but are not limited to: 

• Failing to meet the competitive price selection criteria.
• Failing to meet the minimum square footage requirements.
• Failing to meet the minimum stocking requirements of a full-service grocery store.
• Failing to meet other WIC program selection criteria and/or WIC Retailer Agreement requirements.
• Failing to reimburse the state agency for improperly transacted WIC card purchases or WIC sales transaction audits. 

For more information on termination, refer to WIC retailer policy 2.7 Retailer Agreement Expiration and Termination.

F. False or misleading sales information

The Missouri WIC program will immediately terminate the WIC Retailer Agreement, disqualifying the retailer, for a pattern of providing false or misleading sales transaction information to the WIC program. A pattern for this violation is defined as three or more compliance buys where false information has been supplied within a federal fiscal year. This includes fraudulent WIC sales transactions that were submitted for payment. 

A pattern may also be established due to the retailer resubmitting four or more previously rejected WIC card transactions for payment that have been altered or as a result of the findings from a WIC sales transaction audit within a federal fiscal year. For any instance of a retailer resubmitting a previously rejected WIC card transaction for payment that has had its date of sale or the amount of sale altered, the retailer will receive a warning and a fine of $50. The state sanction for these patterns of violations is a one-year disqualification. 

G. Definitions for sanction schedule 

• Retailer violation. Any intentional or unintentional action of a retailer’s current owners, officers, managers, agents or employees (with or without management knowledge) that violates the WIC Retailer Agreement or federal or state statutes, regulations, policies or procedures governing the program.
• Investigation. A method used by the Missouri WIC program to determine if violations are occurring.
• Sanction. An administrative action taken as a result of a violation.
• Pattern. Based on the number and severity of the violations. 

H. JetPay 

Need to pay fines or reimbursements? Use JetPay to make a one-time payment.