Regulation of Retailers Authorized To Accept Food Stamps Should Be Strengthened

Gao ID: CED-78-183 December 28, 1978

The Department of Agriculture's Food and Nutrition Service (FNS) authorizes and regulates retailers who participate in its food stamp program. Approximately 270,000 retailers are authorized to accept food stamps. In fiscal 1977, $8 billion worth of stamps were redeemed by 17 million participants.

Criteria for authorization of retailers are unclear, and authorize such firms as pastry shops, gas stations, and taverns to accept the stamps. If the program is to achieve its objectives, better regulation and surveillance of food retailers will be necessary to encourage recipients to use their increased purchasing power to buy the staple foods needed in their diets.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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