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Monetary incentives
for non-compliant tobacco retailers – 11/28/05
Q: Tobacco retailers receive monetary incentives
from the tobacco companies when sales goals are met. In certain
states, however, if the tobacco retailer is non-compliant
and sells to a minor (within a certain time period), that
retailer is not eligible to receive the monetary incentive.
Are you aware of the same or similar conduct in your state
between tobacco retailers and tobacco companies?
A:
- Alabama: I'm not aware of any such arrangement
in Alabama. It is definitely not in our state law on youth
access to minors.
- California: This answer was provided
by our Attorney General's office: Philip Morris denies incentives
to retailers who have been adjudicated to have sold to minors
(e.g., paid the STAKE Act violation fine or proof of a PC308
conviction). We have forwarded lists of violations, provided
to us by our Food and Drug Board, to PM covering 2005 and
they have issued one-month suspensions to a large number
of retailers, reporting to us the names and addresses of
stores suspended. There are longer suspensions for 2nd and
subsequent violations. Reynolds and Lorillard have similar
programs but only suspend, I believe, on the 2nd and subsequent
violations, so we aren't currently providing them info on
violations.
- Pennsylvania: We were just made aware
of a letter that one of the stores in PA received today
from Philip Morris concerning this subject. Apparently it
is a nationwide initiative right now. The letter that one
of our stores received indicated that Philip Morris USA
had been notified by state authorities responsible for enforcement
of tobacco sales laws that the store or one of its personnel
was convicted or penalized for selling cigarettes to minors.
As a result of the penalty, Philip Morris USA was suspending
their merchandising payments, they would be ineligible for
promotional resources provided directly by Philip Morris
USA and ineligible for Philip Morris USA product promotions
for one month and indicated the month of their ineligibility.
- Texas: I am not aware of this occurring
in Texas.
- West Virginia: As far as I know, there
are no incentives held because of non-compliance like this
in WV.
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