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CVS Fined for Failing to Enforce PSE Sales Limits
Due to its failure to ensure compliance with pseudoephedrine (PSE) product sales limits, CVS Pharmacy, Inc, in an agreement with federal prosecutors, will pay $77.6 million in penalties and forfeiture. CVS admitted that, from September 2007 to November 2008, the electronic PSE logging system used in its stores throughout southern California and Nevada did not prevent multiple PSE purchases by an individual on the same day. According to a Department of Justice press release, CVS eventually modified its practices, but only after it became aware that a government investigation had been initiated. Further, the Department of Justice reports that CVS’s failure to ensure compliance with the law led to large amounts of PSE being supplied to methamphetamine traffickers and an increase in methamphetamine production in California. In addition to paying a $75 million civil penalty and forfeiting the $2.6 million earned from the unlawful PSE sales, CVS has agreed to implement a compliance and ethics program.
