IN THE MATTER OF: SHELL OIL COMPANY ASSURANCE OF DISCONTINUANCE IN LIEU OF COMPLAINT BACKGROUND WHEREAS, over eighty-two percent (82%) of daily smokers begin their habit before the age of 18: WHEREAS, on each day of the year, an average of three thousand (3,000) children nationwide will begin smoking cigarettes; WHEREAS, one third of those children who begin smoking each day will eventually die from smoking-related diseases; WHEREAS, over half a billion (500,000,000) packs of cigarettes and twenty six million (26,000,000) containers of smokeless tobacco are sold illegally to children each year; WHEREAS, more than four hundred thousand (400,000) U.S. citizens die from tobacco related illnesses annually; THEREFORE, Shell Oil Company, recognizing the need to step forward and demonstrate its commitment to the health and welfare of our nation’s youth, agrees to enter into the following Assurance of Discontinuance. INTRODUCTION 1. This Assurance of Discontinuance ("Assurance") is entered into by the Attorneys General of the States of New York, Vermont, and the Commonwealth of Massachusetts (collectively the "Attorneys General") on behalf of their respective states and commonwealth (collectively the "States") and Shell Oil Company ("Shell"). 2. This Assurance follows an investigation conducted by the Attorneys General in August and September of 1994, pursuant to their respective authority under New York Executive Law §63(12) and General Business Law Article 22-A, and M.G.L. c. 12, §10 and M.G.L.c. 93A, §4, and Vermont Consumer Fraud Act, 9 V.S. A. §2451 et seq. into the illegal sale of tobacco products to minors in the States. Based upon that investigation, the Attorneys General allege that in separate transactions occurring in a number of locations throughout the States, persons under the age of 18, while under the supervision of personnel from the Offices of the Attorneys General were able to purchase tobacco from gasoline stations operating under the Shell trademark pursuant to a franchise agreement. The Attorneys General claim that such sales violated their respective Consumer Protection statutes. 3. Shell is a corporation incorporated under the laws of the State of Delaware, with its principal place of business in Houston, Texas. Shell operates gasoline filling stations within each of the States in which its franchisees sell, among other things, tobacco products. 4. Without admitting liability for any of the above described sales, Shell agrees to enter into this Assurance of Discontinuance and to abide by the provisions set forth below. 5. This Assurance shall be binding on Shell, its successors, assigns, principals and agents. 6. This Assurance may be executed in counterparts. ASSURANCES 7. Shell knowingly and voluntarily enters into these Assurances as follows: a. Compliance with Applicable Federal and State Laws Relating to Tobacco Sales to Minors i. In all company-operated stores, Shell will comply with applicable New York, Vermont and Massachusetts state laws relating to the sale of tobacco products to minors. Shell further agrees that for company-operated stores in Now York, Vermont and Massachusetts, it will prohibit the use of vending machines and self-service displays, the sale of single cigarettes or kiddie packs, the distribution of free tobacco product samples, and the acceptance through the mail of coupons for tobacco purchases. Additionally, Shell will restrict in-store advertisements for tobacco products to black and white text only and will not participate in any program of gifts or giveaways to consumers in exchange for tobacco purchases. ii. For all franchisee-operated stores, Shell will send, within 30 days of the execution of this Assurance, letters to each franchise owner emphasizing and reasserting the contractual requirement to comply with all laws and regulations relevant to the operation of their station premises, including but not limited to New York Public Health Law §1399-aa et seq., M.G.L ch. 270, sections 6-7, 7 V.S.A.§1001 et seq., and will recommend that each franchisee adopt the Shell company-operated station policies restricting tobacco advertisements to black and white text only and prohibiting participation in any program of gifts or giveaways to consumers in exchange for tobacco purchases. iii. In all company-operated Shell stations Shell will clearly and conspicuously post at each location within the station from which tobacco products can be purchased, the notice required by applicable state law, specifically, in the Commonwealth of Massachusetts, M.G.L. c. 270, §7, or any successor provision; in the State of New York, New York Public Health Law §1399-cc, or any successor provision, in the State, of Vermont, 7 V.S.A.§1006. iv. Within 30 days of the date of this Assurance, Shell will supply the notices required by the preceding paragraph to all of its franchisees in each of the States and will advise each franchisee of the legal requirement to post such notices. v. Shell will treat any failure by a franchisee to comply with existing laws and regulations relating to the sale of tobacco products to minors as a breach of the franchise agreement, which may result in termination of the franchise agreement. Shell will clearly communicate this message to each franchise owner in the letter referred to in sub-paragraph aii above. b. Training i. Shell shall provide formal training as to the requirements of the law with regard to the sale of tobacco products, and how to take appropriate measures to ensure that such requirements are followed to all personnel who staff cash registers from which tobacco products are sold, as well as their managers and supervisors ("tobacco sales personnel") at all Shell company-operated locations. This training will include written materials, videos and, where possible, computer aided instruction. This training will be supplemented by periodic updates, at intervals not to exceed six months. ii. Shell shall supply copies of all tobacco training materials to all of its franchisees in each of the States and will communicate to each franchisee the importance of providing training related to tobacco sales to minors to all franchisee employees. iii. For each programmable cash register at each of its company-operated and franchisee-operated stations, Shell shall install a daily message which reminds cashiers that tobacco sales to minors are prohibited and that they must request photographic identification from any customer who appears to be under the age of 27. iv. For all cash registers in all stores, Shell shall apply a self-adhesive sticker containing a message which reminds cashiers that tobacco sales to minors are prohibited, and they must request photographic identification from any customer who appears to be under the age of 27 years. c. Internal Compliance Checks i. Shell shall conduct periodic internal audits and inspections at Shell company-operated stations and franchisee-operated stations in order to ensure compliance with the laws prohibiting the sale of tobacco products to minors. These internal compliance checks, will at a minimum, consist of an anonymous minor or adult under the age of 27 attempting to purchase tobacco products from Shell company-operated, dealer-operated and jobber-operated stations. Shell will ensure that all station locations in each of the States, including franchise locations, are subject to an inspection at least once every six months. ii. If Shell finds that any franchisee-operated station has failed to comply with applicable laws and regulations, Shell shall enforce its rights against the franchisee pursuant to the franchise agreement. Shell also agrees upon request to share information regarding the results of such inspections with the Attorneys General. The Attorneys General agree that they will not institute legal proceedings based on any sales of tobacco products to minors that take place in the course of internal inspections conducted pursuant to this paragraph. d. Scanner Locks i. By January 1, 1998, Shell shall provide and install a point of purchase scanning lock program on each cash register at each company-owned and franchisee-operated Shell station which contains registers capable of utilizing such software. The software will require cashiers to take affirmative steps after a tobacco product is scanned in order to continue processing the purchase. Once a tobacco product is scanned, the software will prompt the cashier to ask the customer who appears to be under the age of 27, to provide photographic identification confirming that he or she is of legal age to purchase tobacco. Shell will only accept government issued photographic identification (such as a driver's license, state identification card, or passport) as proof of age. If the identification appears legitimate, the cashier will enter the date of birth shown on the card into the system, which will calculate whether the person is of legal age to purchase tobacco products. If the customer has no proper identification, or if the identification appears to have been altered or tampered with, the cashier will refuse the sale. ii. Within 90 days of the date of this Assurance, Shell will offer its franchisees the opportunity to purchase at their expense programmable registers at the cost at which Shell purchases the registers from its manufacturer. Shell, at its own expense, shall provide the software described in the preceding paragraph and shall install it on each programmable cash register purchased by a franchisee. e. Contribution i. To assist in the state's development and/or implementation of programs designed to teach minors the dangers of tobacco use and to discourage minors from using tobacco products, Shell will contribute 16.67% of the cost of the programs, up to a maximum contribution of $150,000. The States agree to provide Shell a detailed written analysis of the costs incurred by the States in the development of such programs. Shell will make an initial payment of $25,000 within thirty (30) days of receiving notice that the States have commenced program development, and Shell will make additional contributions within thirty (30) days of receipt of the referenced cost analysis. 8. The parties reserve the right to discuss the viability of any or all of these provisions as they are implemented, having due regard for changes in laws and regulations, as well as changes in equipment, technology or methodology of retail sales over time. Dated: December, 1997
IN THE MATTER OF: CVS CORPORATION ASSURANCE PURSUANT TO M.G.L. CHAPTER 93(A), §5; N.Y.GEN.BUS.LAW, §63(15); AND VERMONT CONSUMER FRAUD ACT, 9 V.S.A., §2451 ET SEQ. BACKGROUND Underage use of tobacco is a major health problem in the United States. The Centers for Disease Control (the "CDC") estimates that as many as one million Americans under the age of 18 start to smoke each year, or about 3,000 per day. The CDC also estimates that about 900 million cigarettes and 26 million cans of smokeless tobacco are sold illegally to minors annually. Further, the Surgeon General has reported that 82 % of today's regular smokers first started to smoke before they were 18 and could legally purchase tobacco products. Many of these smokers go on to join the 400,000 Americans who die each year from tobacco, the single most preventable cause of disease and premature death. CVS, Inc., demonstrating its commitment to the health and welfare of our nation's youth, agrees to enter into the following Assurance with the Attorneys General of Massachusetts, New York and Vermont in order to help prevent unlawful sales of tobacco products to minors. INTRODUCTION 1. This Assurance is entered into by the Attorneys General of the States of New York, Vermont and Massachusetts; (collectively the "Attorneys General") on behalf of their respective states (collectively the "States") and CVS Corporation, a Delaware corporation ("CVS"). 2. This Assurance follows an investigation conducted by the Attorneys General in August and September of 1996, pursuant to their authority under N.Y. Executive Law §63(12), Vermont Consumer Fraud Act, 9 V.S.A., §§2451 et seq.; and M.G.L. c. 12, §10 and c. 93A, §4, into the illegal sale of tobacco products to minors in the States. Based upon that investigation, the Attorneys General allege that in 19 separate transactions occurring between May 1996 and October 1996, persons under the age of 18, while under the supervision of personnel from the Offices of the Attorneys General, were able to purchase tobacco from stores operated by CVS in a number of locations throughout the States. The Attorneys General claim that such sales violated the above cited Consumer Protection statutes for each of the respective States. 3. CVS is a corporation incorporated under the laws of the State of Delaware, with its principal place of business in Woonsocket, Rhode Island. Within each of the States, CVS operates retail stores which sell, among other things, tobacco products. 4. Without admitting liability for any of the above-described sales, CVS agrees to enter into this Assurance and to abide by the provisions set forth below. ASSURANCES General Provisions 5. This Assurance shall be binding on CVS, its successors, assigns, principles and agents. 6. This Assurance may be executed in counterparts. Specific Assurances 7. CVS knowingly and voluntarily enters into this Assurance as follows: a. Access to Tobacco Products By June 30, 1998, CVS will eliminate all unlocked free-standing and self-service displays of cigarettes and smokeless tobacco products from all of its stores located in the States. CVS will keep all cigarettes and smokeless tobacco products sold in its retail stores behind the sales counters, in locked cabinets in the aisles or in store areas which are only accessible to CVS employees. Additionally, CVS shall make its best efforts. to ensure that all other tobacco products are displayed within the direct view of the cashier or personnel of the pharmacy department in order to prevent the sale of these other tobacco products to minors; b. Notice Requirements In the Commonwealth of Massachusetts, CVS will post the notice required by M.G.L. c.270, §7, or any successor provision, in a clear and conspicuous place at every location within each CVS store from which tobacco products can be purchased. In the State of New York, CVS will post the notice required by N.Y. Public Health Law § 1399-cc, or any successor provision, in a clear and conspicuous place at every location within each CVS store from which tobacco products can be purchased. In the State of Vermont, CVS will post the notice required by 7 V.S.A. §1006, or any successor provision, in a clear and conspicuous place at every location within each CVS store from which tobacco products can be purchased c. Training CVS will provide formal training as to the requirements of the law with regard to the sale of tobacco products and how to take appropriate measures to ensure that such requirements are followed, to all personnel who staff cash registers from which tobacco products are sold, as well as their managers and supervisors ("tobacco sales personnel"). This training will include written materials, and where possible, videos and computer-aided instruction. This training will be supplemented by periodic training updates, at intervals not to exceed six months. In addition, for each cash register in each of its stores in each of the States, CVS shall install by June 30, 1998 a daily register prompt which reminds cashiers that tobacco sales to minors are prohibited and that they must request photographic identification from any customer who appears to be under the age of 27; d. Internal Compliance Checks CVS will conduct periodic internal inspections in order to ensure compliance with the laws prohibiting the sale of tobacco products to minors. These internal inspections will, at a minimum, consist of an anonymous minor or adult under the age of 21 attempting to purchase tobacco products from CVS stores. CVS will ensure that each store location is subject to an inspection at least once every six months. CVS agrees upon reasonable requests to share information regarding the results of such inspections with the Attorneys General. The Attorneys General agree that they will not institute legal proceedings or attempt to impose any damages, penalties or fines based on any sales of tobacco products to minors that take place in the course of internal inspections conducted pursuant to this paragraph; e. Scanner Prompts CVS will implement a point of purchase scanner prompt program at each CVS retail store that displays on each cashier's computer screen on each new workday, the most recent date of birth a consumer may have in order to purchase tobacco products legally. If the customer seeking to purchase tobacco products appears to be under the age of 27, the cashier will ask the customer to show proof that he or she is of legal age to purchase tobacco. CVS will only accept government issued photographic identification (such as a driver's license, state identification card, or passport) as proof of age. Once the identification has been checked by the cashier, a prompt will appear on the computer screen asking the cashier to verify that he/she has in fact checked the customer's identification. If the identification appears legitimate and the cashier verifies that he/she has checked the identification, the cashier can complete the sale. If the customer has no proper identification, or if the identification appears to have been altered or tampered with, or if the cashier fails to verify that he/she has checked the identification, the cashier shall not complete the sale. f. Contribution To assist in the States' development and/or implementation of programs designed to teach minors the dangers of tobacco use and to discourage minors from using tobacco products, CVS will contribute 16.67% of the cost of the programs, up to a maximum contribution of $150,000. The States agree to provide CVS a detailed written analysis of the costs incurred by the States in the development of such programs. CVS will make an initial payment of $25, 000 within thirty (30) days of receiving notice that the States have commenced program development, and CVS will make additional contributions within thirty (30) days of receipt of the referenced cost analysis. Dated: March 23, 1998
IN THE MATTER OF: KMART CORPORATION ASSURANCE OF DISCONTINUANCE BACKGROUND WHEREAS, over eighty-two percent (82%) of daily smokers began their habit before the age of 18; WHEREAS, on each day of the year, an average of three thousand (3,000) children nationwide will begin smoking cigarettes; WHEREAS, one third of those children who begin smoking each day will eventually die from smoking-related diseases; WHEREAS, over half a billion (500,000,000) packs of cigarettes and twenty six million (26,000,000) containers of smokeless tobacco are sold illegally to children each year; WHEREAS, more than four hundred thousand (400,000) U.S. citizens die from tobacco related illnesses annually; THEREFORE, Kmart Inc., recognizing the need to step forward and demonstrate its commitment to the health and welfare of our nation's youth, agrees to enter into the following Assurance of Discontinuance. INTRODUCTION 1. This Assurance of Discontinuance ("Assurance") is entered into by the Attorneys General of the States of New York and Vermont (collectively the" Attorneys General") on behalf of their respective states (collectively the "States") and Kmart Corporation ("Kmart"). 2. This Assurance follows an investigation conducted by the Attorneys General in August, September and October of 1996, pursuant to their respective authority under New York Executive Law §63(12) and General Business Law Article 22-A, and Vermont Consumer Fraud Act, 9 V.S.A.§2451 et seq. into the illegal sale of tobacco products to minors in the States. Based upon that investigation, the Attorneys General allege that in separate transactions occurring in a number of locations throughout the states, persons under the age of 18, while under the supervision of personnel from the Offices of the Attorneys General, were able to purchase tobacco from stores operated by Kmart. The Attorneys General claim that such sales violated their respective Consumer Protection statutes1 3. Kmart is a corporation incorporated under the laws of the State of Michigan, with its headquarters at Troy, Michigan. Kmart operates retail stores within each of the States in which it sells, among other things, tobacco products. 4. Without admitting liability for any of the above-described sales, and without admitting that any of the acts of Kmart described above would sustain a cause of action under the States' consumer fraud acts, Kmart agrees to enter into this Assurance of Discontinuance and to abide by the provisions set forth below. 5. This Assurance shall be binding on Kmart, its successors, assigns, principles and agents. 6. This Assurance may be executed in counterparts. 7. The parties reserve the right to discuss the viability of any or all of the provisions below as they are implemented, having due regard for changes in laws and regulations, as well as changes in equipment, technology or methodology of retail sales over time. ASSURANCES 8. Kmart knowingly and voluntarily enters into these Assurances as follows: a. Access to Tobacco Products By June 1998, Kmart will eliminate all freestanding, or self-service displays of tobacco products from all of its stores in New York and Vermont. Kmart will keep all of its tobacco products in locked cabinets, tobacco corrals, convenience centers or kiosks that are only accessible to Kmart employees. b. Notice Requirements In the State of New York, Kmart will post the notice required by New York Public Health Law §1399-cc, or any successor provision, in a clear and conspicuous place at every Kmart store from which tobacco products can be purchased. In the State of Vermont, Kmart will post the notice required by 7 V.S.A. §1006, or any successor provision, in a clear and conspicuous place at every Kmart store from which tobacco products can be purchased. c. Training Kmart will include information concerning the legal sale of tobacco products in its training of all personnel who staff cash registers from which tobacco products are sold, as well as their managers and supervisors ("tobacco sales personnel"). This training will include written materials, and may also include videos and computer-aided instruction. This training will be supplemented by periodic training updates, at intervals not to exceed six months. All such employees will be required to acknowledge Kmart's policies by signing a Personnel Interview Record (such as the example attached as Exhibit A) at the completion of their training and before they begin to staff cash registers. Additionally, by April 1999, Kmart shall install on each cash register at which cigarettes may be purchased, a daily message which reminds cashiers to request photographic identification from any customer who appears to be under the age of 27; d. Scanner Locks i. Kmart has already implemented point of purchase scanning programs in its Super Kmart Center locations. At these locations, the register operators must take the following affirmative steps after a tobacco product is scanned in order to continue processing the purchase. Once a tobacco product is scanned by the register operator, the cash register will prompt the register operator to show proof that he or she is of legal age to purchase tobacco. If the customer seeking to purchase tobacco products appears to be under the age of 27, the register operator will ask the customer to produce government issued photographic identification (such as a driver's license, state identification card, or passport) as proof of age. The cash register operator will enter the purchaser’s date of birth into the register system, which will calculate whether the person is of legal age to purchase tobacco products. Once the birth date is entered into the register system and results in a calculation that the purchaser is not of legal age to purchase tobacco products, the register system will prompt the cashier to refuse the sale. ii. Kmart will engage in good faith efforts to complete installation by April 1, 1999, of the point of purchase scanning program described in paragraph d.i in each of the stores which do not have scanner locks as of the date on which this Assurance is executed. e. Contribution i. To assist in the state's development and/or implementation of programs designed to teach minors the dangers of tobacco use and to discourage minors from using tobacco products, Kmart will contribute 16.67% of the cost of the programs, up to a maximum contribution of $150,000. The States agree to provide Kmart a detailed written analysis of the costs incurred by the States in the development of such programs. Kmart will make an initial payment of $25,000 within thirty (30) days of receiving notice that the States have commenced program development, and Kmart will make additional contributions within thirty (30) days of receipt of the referenced cost analysis. In addition, at the time the States provide Kmart with the first referenced cost analysis, the States also will provide Kmart with the following: (a) verification of the non-profit status of the entities which will be developing the communication programs regarding tobacco use; (b) a copy of the communication plan, which identifies where and when the advertisements will be carried, and a copy of the budget that the entity will use to distribute the anti-tobacco messages; and (c) verification that Kmart will be recognized as a sponsor on an agreed number of public service announcements. Dated: April 27, 1998
Attachment A
(An Equal Opportunity Employer)
IN THE MATTER OF: STAR ENTERPRISE ASSURANCE OF DISCONTINUANCE IN LIEU OF COMPLAINT BACKGROUND WHEREAS, over eighty-two percent (82%) of daily smokers began their habit before the age of 18; WHEREAS, on each day of the year, an average of three thousand (3,000) children nationwide will begin smoking cigarettes; WHEREAS, over half a billion (500,000) packs of cigarettes and twenty six million (26,000,000) containers of smokeless tobacco are sold illegally to children each year; WHEREAS, more than four hundred thousand (400,000) U.S. citizens die from tobacco related illnesses annually; THEREFORE, Star Enterprise, recognizing the need to step forward and demonstrate its commitment to the health and welfare of our nation’s youth, agrees to enter into the following Assurance of Discontinuance. INTRODUCTION 1. This Assurance of Discontinuance ("Assurance") is entered into by the Attorneys General of the States of New York and Vermont, and the Commonwealth of Massachusetts (collectively the "Attorneys General") on behalf of their respective states and commonwealth (collectively the "States") and Star Enterprise ("Star"). 2. This Assurance follows an investigation conducted by the Attorneys General in August and September of 1996, pursuant to their respective authority under New York Executive Law §53(12) and General Business Law Article 22-A and M.G.L. c 12 §10 and M.G.L. c. 93A, §4, and Vermont Consumer Fraud Act, 9V.S.A. §2451 et seq. Based upon that investigation, the Attorneys General allege that in separate transactions occurring in a number of locations throughout the states, persons under the age of 18, while under the supervision of personnel from the Offices of the Attorneys General, were able to purchase tobacco from gasoline stations operating under the Texaco trademark. The Attorneys General claim that such sales violated their respective Consumer Protection statutes. 3. Star Enterprise is a partnership, with its principal place of business at 12700 Northborough Drive, Houston, Texas. Star sells Texaco brand gasoline through franchisees and or wholesalers within each of the States. Franchisees, wholesalers and/or retailers also sell, among other things, tobacco products. 4. Without admitting liability for any of the above described sales, Star agrees to enter into this Assurance of Discontinuance and to abide by the provisions set forth below. 5. This Assurance shall be binding on Star, its successors, assigns, principals and agents. 6. This Assurance may be executed in counterparts. ASSURANCES 7. Star knowingly and voluntarily enters into these Assurances as follows: a. Compliance with Applicable Federal and State Laws Relating to Tobacco Sales to Minors i. In all company-operated stores, Star will comply with applicable New York, Vermont and Massachusetts state laws relating to the sales of tobacco products to minors. ii. For all franchisee-operated stores, Star will send, within 30 days of the execution of this Assurance, letters to each franchise owner emphasizing and reasserting the contractual requirement to comply with all laws and regulations relevant to the operation of their station premises, including but not limited to New York Public Health Law §1399-cc, et seq., M.G.L. ch. 270, sections 6-7-, 7 V.S.A. §1001 et seq.; iii. In all company-operated Star stations, Star will clearly and conspicuously post at each location within the station from which tobacco products can be purchased, the notice required by applicable state law, specifically, in the Commonwealth of Massachusetts, M.G.L. c. 270 §7, or any successor provision; in the State of New York, New York Public Health Law §1399-cc, or any successor provisions; in the State of Vermont, 7 V.S.A. §1006. iv. Within 30 days of the date of this Assurance, Star will supply the notices required by the preceding paragraph to all of its franchisees in each of the States and will advise each franchisee of the legal requirements to post such notices. v. Star will treat any failure by a franchisee to comply with existing laws and relating to the sale of tobacco products to minors as a breach of the franchise agreement which may result in termination of the franchise agreement. Star will clearly communicate this message to each franchise owner in the letter referred to in sub-paragraph a. ii above. b. Training i. Star shall make available formal training as to the requirements of the law with regard to the sale of tobacco products, and how to take appropriate measures to ensure that such requirements are followed to all personnel who staff cash registers from which tobacco products are sold, as well as their managers and supervisors ("tobacco sales personnel") at all Star company-operated locations. This training will include written materials, videos and where possible, computer aided instruction. This training will be supplemented by periodic training updates, at intervals not to exceed six months. ii. Star shall make available copies of all tobacco training materials to all of its franchisees in each of the States, and will communicate to each franchise the importance of providing training related to tobacco sales to minors to all franchisee employees. iii. As technology is designed for each programmable cash register at each of its company-operated and franchisee-operated stations, Star shall make available software which posts a daily message on each programmable cash register, which reminds cashiers that tobacco sales to minors are prohibited and that they must request photographic identification from any customer who appears to be under the age of 27. c. Scanner Locks i. Within 90 days of the date of this Assurance, Star will offer franchisees the opportunity to purchase at their expense, programmable registers at the cost at which Star purchases the registers from the manufacturer. Star shall make available the following software for each programmable cash register purchased by a franchisee and shall install it on each cash register purchased by a franchisee. The software will require cashiers to take affirmative steps after a tobacco product is received for purchase, in order to continue processing the purchase. Once a tobacco product is input for sale, the software will prompt the cashier to ask the customer who appears to be under the age of 27 to provide photographic identification (such as a driver’s license, state identification card, or passport) as proof of age. If the identification appears legitimate, the cashier will enter the date of birth shown on the card into the system, which will calculate whether the person is of legal age to purchase tobacco products. If the customer has no proper identification, or if the identification appears to have been altered or tampered with, the cashier will refuse the sale. d. Contribution i. To assist in the state’s development and/or implementation of programs designed to teach minors the dangers of tobacco, and to discourage minors from using tobacco products. Star will contribute 16.67% of the cost of the programs, up to a maximum contribution of $100,000. The States agree to provide Star a detailed written analysis of the costs incurred by the States in the development of such programs. Star will make an initial payment of $25,000 within thirty (30) days of receiving notice that the States have commenced program development, and star will make additional contributions within thirty (30) days of receipt of the referenced cost analysis 8. The parties reserve the right to discuss the viability of any or all of these provisions as they are implemented, having due regard for changes in laws and regulations, as well as changes in equipment, technology or methodology of retail sales over time. Dated: May 4, 1998
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