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CVS Reaches Settlement Over Tobacco Sales

3/16/2006

Providence, R.I., CVS Corp. reached a settlement with 42 states and Washington D.C., promising to strengthen practices that keep minors from buying tobacco products. A company spokesman said although the agreement isn’t an admission of wrongdoing, CVS officials signed it to head off legal action threatened by several states for past violations. The pharmacy chain agreed to check the identities of customers who attempt to purchase tobacco products if they look younger than 27. CVS officials also agreed not to use self-service displays or vending machines to sell tobacco products and to train employees on state and local laws regulating tobacco sales. The company also will hire an independent monitor to check its compliance at 5,400 stores nationwide, and prosecutors can still bring legal action if the company fails to adhere to the settlement. Officials did not disclose the cost of the agreement.

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