Regulators Asked To Probe CVS' Tobacco-Free Network

Law360, New York (November 10, 2014, 6:29 PM EST) -- A leading antitrust law think tank on Monday urged U.S. regulators to probe CVS Health Corp.'s plan to create a tobacco-free pharmacy network, saying it's worried the pharmacy's stated desire to wean customers off cigarettes is a “smokescreen” to impose higher costs on those who fill prescriptions at rival pharmacies.

The American Antitrust Institute requested the U.S. Federal Trade Commission “carefully scrutinize” CVS' business practices. CVS was praised earlier this year when it pulled cigarettes and tobacco from its shelves, and later announced it was developing a network of pharmacies that also do not sell tobacco products.

The network, though, would...

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