CVS Pharmacy has signed an agreement with 37 state attorneys general to police tobacco sales to minors.
CVS agreed to change the way it promotes and advertises cigarettes in its 5,400-plus stores in order to curb sales to minors. 7-Eleven, Walgreens, Rite Aid and Exxon Mobil have all signed similar “Assurance of Voluntary Compliance” agreements with state AGs, who began negotiating with retailers in 2000.
Under the agreement, CVS will eliminate free samples, self-service displays, vending machines and look-alike products. CVS also will confine all tobacco signage and branding to the section of the store where tobacco is sold.
CVS agrees to check IDs of all shoppers who appear to be younger than 27, and hire a third party to conduct random compliance checks in 1,361 stores each year. Most of the provisions take effect by mid-May.
Meanwhile, the SEC has cleared CVS’ purchase of 700 Osco and Sav-On drug stores from Albertsons (Xtra, Jan. 25).
The SEC continues to investigate the accounting of a 2000 transaction in which CVS sold excess inventory of plush toys to a third party. Earlier this month, CVS’s internal review found accounting errors in the transaction, prompting CVS’ controller and treasurer both to resign.
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