Tobacco at Pharmacies

Walgreen sues to stop San Francisco's ban on tobacco sales

Walgreen Co. (WAG) has sued to strike down San Francisco's ban on the sale of cigarettes and other tobacco products at pharmacies in the city.

The largest U.S. drug-store chain by sales is seeking a preliminary injunction to block the law from taking effect Oct. 1. A hearing on Walgreen's motion will be held Sept. 30.

San Francisco's law prohibits "any retail establishment in which the profession of pharmacy is practiced from selling tobacco products, unless the retail establishment is a general grocery store or a big-box store," according to Walgreen's lawsuit.

The suit said Walgreen "shares San Francisco's goal of reducing smoking." But it argues that the law wouldn't reduce the amount of tobacco products sold in the city. "Instead, it merely prohibits some pharmacies from selling tobacco products."

Walgreen also calls the law "anti-competitive and unconstitutional" because it prohibits sales of tobacco products at some, but not all, pharmacies. "The brunt of the ordinance will fall on Walgreens, to the benefit of general grocery stores that can continue to have pharmacies and sell tobacco products and the other types of products sold at Walgreens."

In support of the law, antismoking advocates argued that stores promoting health care shouldn't also be selling tobacco products. Mayor Gavin Newsom modeled the law after similar bans on the books in Canada.

Other efforts have cropped up across the U.S. to pass similar state and city laws, but San Francisco is the first to do so. The city also was the first to ban smoking in workplaces and other public places.

Supporters of the sales bans say they are trying to reduce tobacco-related illnesses by limiting access to cigarettes, which have established health hazards. By ratcheting up the social unacceptability of cigarettes, supporters believe they can deter young people from starting tobacco habits.

Opponents portray the efforts as selective legislation that will have little impact on smoking rates, while making retailers choose between selling what customers want and offering affordable health care.

(Published by CNN Money - September 10, 2008)