CVS fined $75 million for pseudoephedrine sales violations

CVS  has been ordered to pay $75 million dollars in fines for failing to restrict the sale of pseudoephedrine in Arizona, Georgia, California, Nevada, and South Carolina and several other states. The fine imposed on CVS by federal prosecutors is the largest civil penalty ever imposed for violations of the Controlled Substances Act. In addition to the fine, CVS will also be required to forfeit the $2.6 million dollar profit that they made from selling products containing pseudoephedrine.

The unrestricted sale of pseudoephedrine products by CVS that took place between 2007 and 2008, was reportedly due to a glitch with the computer software that the company was using to keep track of their pseudoephedrine sales.

According to news reports, Meth Check, the electronic tracking system used by CVS allowed an individual to buy 3.6 grams of pseudoephedrine, the daily legal limit, but failed to keep track of repeated purchases of 3.6 grams that were made by the same buyer on the same day.  Efforts by some CVS store clerks to alert their managers about the software glitch, were told to keep selling as long as the computer system allowed them to. Smurfers (people who go from store to store to buy pseudoephedrine products),  used the software glitch to buy as many pseudoephedrine packages as they could every day.

By agreeing to pay the $75 million dollar fine, CVS will not have to face criminal charges that federal prosecutors might otherwise have pursued.

Resources:

Hernandez, Miriam, “CVS pays fine for selling meth ingredients”, ABC News 7 KABC-TV, 14 Oct. 10, web, 15 Oct. 10

Associated Press, “CVS to pay $74 million fine for meth”, Fox News, 14 Oct. 10, web, 15 Oct. 10

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