The US government has called out the body in charge of monitoring organic food labeling in the US for failing to enforce standards outlined under the Bush administration. Their report cites multiple companies marketing their produce as organic when they clearly do not meet national organic standards, though the biggest failing regards California's state organic program. The National Organic Program allowed California to monitor its own organic food businesses by creating a State Organic Program. However, the state's program didn't meet many of the national requirements for organic labeling, even though the food has been sold nationwide.
In the US, organic standards are set by the National Organic Program, which has also established an organic certification program. A civil penalty of up to $10,000 can be levied on any person who knowingly sells or labels as organic a product that is not produced and handled in accordance with the NOP's regulations. The regulations simply have not been enforced.