Columbus, OH – Scotts Miracle-Gro, the nation’s leading lawn and garden product manufacturer, has been slapped with a record $12.5 million in combined criminal fines and civil penalties for widespread violations of federal pesticide laws. The case, stemming from a years-long investigation by the Environmental Protection Agency (EPA) and the Department of Justice (DOJ), revealed a pattern of illegal pesticide application, falsified documentation, and misleading product labeling.
Federal prosecutors revealed that Scotts knowingly applied the insecticides Actellic 5E and Storcide II to its bird food products despite explicit EPA prohibitions. The company claimed the practice was implemented to prevent insect infestation during storage. However, internal warnings from employees about the toxicity of these chemicals – specifically, the label on Storcide II explicitly stating it was “extremely toxic to fish and toxic to birds and other wildlife” – were allegedly ignored for six months. Over 70 million units of illegally treated bird food were sold before a voluntary recall was issued in March 2008.
The investigation further uncovered a deliberate scheme by Scotts to submit falsified documents to both the EPA and state regulatory agencies. These documents falsely indicated that numerous pesticides were properly registered with the EPA when, in fact, they were not. The company then illegally sold these unregistered pesticides and marketed products with labels containing unapproved and misleading claims. A former federal product manager at Scotts, identified as Kendrick, was directly implicated in the creation and submission of these false documents. Kendrick was sentenced to three months incarceration for her role in the scheme.
Legal Ramifications and Penalties
Scotts pleaded guilty in February 2012 to four counts of violating the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), specifically:
- 7 U.S.C. 136j(a)(1)(A): Unlawful distribution or sale of pesticides not registered with the EPA.
- 7 U.S.C. 136j(a)(1)(E): Distribution or sale of adulterated or misbranded pesticides.
- 7 U.S.C. 136j(a)(2)(G): Use of registered pesticides in a manner inconsistent with labeling.
- 7 U.S.C. 136j(a)(2)(M): Knowingly falsifying pesticide registration applications.
As a result, the company was sentenced in May 2012 to pay a $4 million federal fine. In a parallel civil settlement with the EPA, Scotts agreed to an additional $6 million in penalties and a $2 million investment in environmental projects. This combined penalty of $12.5 million represents the largest criminal and civil settlement ever obtained under FIFRA.
Community Service and Environmental Restoration
Beyond the financial penalties, Scotts was also ordered to contribute $500,000 to organizations dedicated to bird habitat protection. This included $100,000 donations each to the Ohio Audubon’s Important Bird Area Program, the Ohio Department of Natural Resources’ Urban Forestry Program, the Columbus Metro-Parks Bird Habitat Enhancement Program, the Cornell University Ornithology Laboratory, and The Nature Conservancy of Ohio. Additionally, the EPA mandated that Scotts dedicate $2 million to acquire and restore 300 acres of land to mitigate agricultural runoff into waterways.
Key Facts
- Defendant: Scotts Miracle-Gro Company
- Location: Columbus, Ohio
- Year: 2012
- Crime: Pesticide fraud, falsification of documents, and illegal pesticide application.
- Illegally Treated Products: Over 70 million units of bird food treated with Actellic 5E and Storcide II.
- Total Penalties: $12.5 million (combined criminal fines and civil penalties).
- Former Employee Sentenced: Kendrick received 3 months incarceration for falsifying documents.
- EPA Involvement: Issued over 40 Stop Sale, Use, or Removal Orders for over 100 pesticide products.
“The misuse or mislabeling of pesticide products can cause serious illness in humans and be toxic to wildlife,” stated Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s sentence and unprecedented civil settlement hold Scotts accountable for widespread company noncompliance with pesticide laws, which put products into the hands of consumers without the proper authorization or warning labels.” The DOJ echoed this sentiment, emphasizing Scotts’ “special obligation” as the largest pesticide marketer to adhere to federal regulations.
Source: EPA ECHO Enforcement Case Database
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