$5M Fines Slam Chocolate Milk Packaging Rule-Breakers in California
Published Date: 3/18/2026
Notice
Summary
Four California companies got hit with big fines—totaling over $5 million—for breaking rules about certain chocolate milk powder and its packaging. These penalties cover violations lasting from 2 to 18 days, and the enforcement case is now officially closed. If you’re in the chocolate milk biz, this is a clear message: follow the rules or pay up!
Analyzed Economic Effects
3 provisions identified: 1 benefits, 2 costs, 0 mixed.
Daily $100,000 Civil Penalty Rate
The Commission imposed civil penalties at a rate of $100,000 for each day a respondent violated the cease and desist orders in this investigation. The Commission applied that $100,000-per-day rate to calculate the fines in this case.
Four California Firms Fined $5.3M Total
The Commission assessed civil penalties totaling $5,300,000 against four California companies for violating cease and desist orders: Organic Ingredients Inc. (San Diego) $1,800,000 for 18 days; New India Bazar Inc. (San Jose) $1,600,000 for 16 days; Bharat Bazar Inc. (Union City) $200,000 for 2 days; and Coconut Hill Inc. (Sunnyvale) $1,700,000 for 17 days.
Enforcement Proceeding Terminated
After issuing the civil penalties, the Commission terminated the enforcement proceeding; the vote on the determination occurred on March 16, 2026. The matter is closed following assessment of the fines.
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Key Dates
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Related Federal Register Documents
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