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Chevron Latest to Limit Tobacco Sales: In Multistate Agreement, Oil Firm's Outlets to Keep Product Off-Limits to Kids.

Posted on: Friday, 16 June 2006, 15:00 CDT

By Andrew McIntosh, The Sacramento Bee, Calif.

Jun. 16--Oil giant Chevron Corp. agreed Thursday to restrict and control tobacco sales to minors at its 1,487 retail and franchise outlets in California under a multistate agreement unveiled by Attorney General Bill Lockyer.

An affiliate of San Ramon-based Chevron voluntarily entered the agreement with California, 26 other states and Washington, D.C., affecting sales at more than 8,000 Chevron outlets in the 28 jurisdictions.

The restrictions affect 309 company-owned outlets in California, but the oil giant also pledged to change its franchise contracts. Now, the deals will warn that selling tobacco to minors can result in the loss of a franchise.

Lockyer said youth access to tobacco products ranks among the most serious public health problems, citing studies that show more than 80 percent of adults begin smoking before age 18.

"We owe it to our children to do everything we can to keep them from starting a habit that kills," he said in a statement.

Lockyer said Chevron deserved credit for its actions.

Denny Samuel, Chevron's Sacramento lobbyist, said the company is not concerned the deal may hurt its sales because doing the right thing is more important.

The voluntary Chevron agreement is the 10th achieved by an ongoing, multistate enforcement effort led by Lockyer. Previous agreements reached by the 28 jurisdictions cover the sale of smoking materials in Wal-Mart, Walgreens, Rite Aid, CVS Pharmacy and 7-Eleven stores.

Other deals also cover gas stations and convenience stores operating under the Exxon, Mobil, BP, Arco and 76 names.

Lockyer and Rocky Delgadillo, the Los Angeles city attorney, also reached a 2004 settlement with Safeway Inc. that curbed tobacco sales to minors at 538 Safeway, Vons, Pavilions and Pak N'Save stores in California.

State laws prohibit tobacco sales to minors, but some retailers prominently display smoking products in stores and don't discourage minors from buying them by checking their ages.

Under its agreement, Chevron agreed to limit in-store tobacco advertising to brand names, logos, trademarks and prices.

Advertising will not be placed near candy, toys or other products bought for or by children.

Lockyer said the deal bans self-service cigarette displays, vending machine sales and the sale of cigarette look-alike products.

It also requires clerks to check customer identification if tobacco buyers look under 30.

Chevron also must hire an independent entity to do compliance spot checks twice a year at company stores and train all clerks about state and local tobacco laws and Chevron policies.

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Copyright (c) 2006, The Sacramento Bee, Calif.

Distributed by Knight Ridder/Tribune Business News.

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Source: The Sacramento Bee

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