1. Orlando, Florida January 8 & 9, 2002

2. Best Practices for Responsible Retailing Presented to the Responsible Retailing Forum January 9, 2003 Orlando, Florida

3. Presentation Overview Report Committee and Principal Readers Purpose of the Document Model of Responsible Retailing Intended Audience Components of a Responsible – Retailing Program –Retailer Component –Public Sector Component Knowledge Gaps

4. Report Committee Brad S. Krevor, Ph.D.Brad S. Krevor, Ph.D. –Schneider Institute for Health Policy, Heller School for Management and Social Policy, Brandeis University. John Capitman, Ph.D.John Capitman, Ph.D. –Schneider Institute for Health Policy, Heller School for Management and Social Policy, Brandeis University. Joseph DiFranza, M.D.Joseph DiFranza, M.D. –Department of Family Medicine and Community Health, University of Massachusetts Medical School Mark Willingham, DirectorMark Willingham, Director –Center for Tobacco and Alcohol Access Prevention. C-TAAP Lee WilsonLee Wilson –Senior Public Health Advisor and Government Project Officer, State and Community Systems Application Branch, Division of State and Community Systems Development, Center for Substance Abuse Prevention. Steve McElravySteve McElravy –Public Health Advisor, State and Community Systems Application Branch, Division of State and Community Systems Development, Center for Substance Abuse Prevention.

5. Principal Readers John AlbrechtJohn Albrecht –Senior Deputy Attorney General, Nevada John ArchardJohn Archard –Juvenile Tobacco Officer, Maine AG Jan ByrneJan Byrne –Education Coordinator, Alabama ABC Jean Forester, Ph.D.Jean Forester, Ph.D. –School of Public Health, Univ of Minnesota Greg HewettGreg Hewett –Supervisor, Tobacco Prevention Program, State of Maine Tom HoltTom Holt –Chief Operating Officer, Store 24 Alan LiebermanAlan Lieberman –Assistant AG, California Rick PhillipsRick Phillips –Chief, Enforcement and Education Division, Washington State Liquor Board Robert ReynoldsRobert Reynolds –Director, Center for Policy Analysis and Training, PIRE. Steve St. ClairSteve St. Clair –Assistant AG, Iowa Randy St. JohnRandy St. John –Senior VP, Pennsylvania Food Merchants Association Rolland W. TrayteRolland W. Trayte –Director, Loss Prevention, Phillips 66 Company Dan WalshDan Walsh –Unit Chief, STAKE Unit, California Department of Health Services.

6. Background: Synar Statutory and Regulatory Requirements Synar Amendment passed - 1992 Synar Regulation promulgated - 1996 Required: State law making sale/ distribution of tobacco to minors illegal States to Enforce laws

7. Background: Synar Statutory and Regulatory Requirements Conduct annual, random, unannounced inspections- probability sample of outlets. Reduce retailer’s violation rate to no more than 20%. Submit an annual report detailing State activities to enforce laws. Penalty for noncompliance is 40% reduction in SAPT Block Grant

8. States’ Progress 40.1 % violations in 1996 (weighted national average). Dropped to 16.3 % for inspections in 2001. Much collaboration was needed to accomplish this: SSAs for Substance Abuse Prevention and Treatment. Enforcement. In some States, Retailers.

9. Background: Best Practices for Responsible Retailing Report CSAP, the Federal agency which oversees Synar implementation and provides TA to the SSAs, Commissioned the Report on Best Practices for Responsible Retailing to assist States to reach their Synar targets and preserve funding for ATOD.

10. Responsible Retailing Program This report identifies the constituent parts of a comprehensive Responsible Retailing Program designed to prevent the sale of tobacco and other age restricted products to minors

11. Purpose of the Report shown promiseThe Best Practices presented in the report are not pie-in-the-sky but rather practices or technologies that have shown promise in preventing youth access to age restricted products through research or practice.

12. Model of Responsible Retailing Model of Responsible Retailing 3 Distinct Elements of a Comprehensive Program Comprehensive Hiring and Training of Sales Personnel Policies for Store Managers and Owners Active Public Sector Role

13. Intended Audience Attorneys General Inspection and Enforcement Agencies Retailers and Retail Associations Single State Authority (SSA) for Substance Abuse. Other Stakeholders.

14. Components of a Responsible Retailing Program

15. Components of a Responsible Retailing Program Retailer Components Public Sector Components

16. CSAP Model: Retailer Components Supervision and Accountability Store Level Hiring – Training – Point of Sale Practices “Retailer Components”

17. CSAP Model Store Level Hiring

18. 1. Hiring Employees should be informed of importance of compliance. Employees should be screened for past violations. Background Check completed for violations & contact with previous employers made. Retailer Components Sales Personnel Policies

19. 1.Hiring 1. Hiring Minimum 18 years old for clerks, possibly even 21 years old. Inform clerks that performance affects: –$alary, promotion, and retention. –Will be ongoing monitoring. –Violations will lead to disciplinary action including discharge. Retailer Components Sales Personnel Policies

20. CSAP Model Store Level Hiring – T TT Training

21. 2. Training Before assuming any job duties: – employees should receive comprehensive training in laws and company policies from an experienced and knowledgeable individual. Retailer Components Sales Personnel Policies

22. 2. Training At a minimum, the training should include: –State, local, and federal laws on youth access. –Health and societal costs of tobacco use. –Company policies on youth access to tobacco Retailer Components Sales Personnel Policies

23. 2. Training At a minimum, the training should include: –Definition of tobacco products and where applicable, smoking paraphernalia that law or policy also restricts. –Law and policy on requiring identification, acceptable forms of identification, and the age that triggers its request. Retailer Components Sales Personnel Policies

24. 2. Training At a minimum, the training should include: –Specific age-verification protocols to ensure the DOB is read and clearly understood, –And compared to a calendar or EAV device. –Employees should be taught that many sales do occur when minors produce an ID showing them to be under age. Retailer Components Sales Personnel Policies

25. 2. Training At a minimum, the training should include: –Verification of an ID’s authenticity: The features of an ID that must be checked Tips on altered or misused ID –What to do if the ID appears altered or misused. –Expired IDs Retailer Components Sales Personnel Policies

26. 2. Training At a minimum, the training should include: –Prescribed methods for Asking for an ID When and how to ask for a second verifying ID Declining the sale for no ID or for underage. Declining the sale for an altered or improper ID Retailer Components Sales Personnel Policies

27. 2. Training At a minimum, the training should include: –Recognizing and declining a 3 rd party sale. –Declining sale of restricted paraphernalia –Resisting customer pressure and handling abusive conduct. Retailer Components Sales Personnel Policies

28. 2. Training Training should also include: –Clear directives on seeking managerial assistance –Resistance to purchase attempts by peers and friends. –Authority to refuse a sale –Written test of knowledge. –Written acknowledgement that employee has received training and has read and understands policy and what is expected. Retailer Components Sales Personnel Policies

29. 3. Retraining Retraining at least every 6 months to maintain knowledge, skills, and motivation. Provide review of employees and outlets standing on compliance issues. Discussion of performance related goals relating to compliance. Retailer Components Sales Personnel Policies

30. CSAP Model Store Level Hiring – Training - P PP Point of Sale Practices

31. Point of Sale Practices 1. Signage 2. Inspect ID s 3. Specialty Calendars 4. Checkout Scanners 5. Electronic Age Verification Devices 6. Clerk Assisted Sales 7. Video Cameras 8. Unusual Occurrence Logs Retailer Components Point of Sale Practices

32. Signage 1. Signage –In addition to local requirements, –Signs should be posted at store entrance and at POS. Signs should also be posted at product displays –Signs should announce age required for purchase and policy to request ID from anyone appearing below a certain age. Retailer Components Point of Sale Practices

33. 2. Inspect ID s –ID anyone below 27*. –Inspect the ID. –Does it belong to the person, is it authentic, is it valid, –Ask for a 2 nd ID if in doubt. Retailer Components Point of Sale Practices * Age 27 is a convenient hold-over from FDA regulations. Individual firms are free to establish their own age trigger except where state law establishes that age.

34. Specialty Calendars 3. Specialty Calendars These calendars help the clerks “do the math” and are intended to reduce errors. Should be available at each cash register. Retailer Components Point of Sale Practices

35. Checkout Scanners 4. Checkout Scanners Should be programmed to recognize tobacco products and prompt specific clerk actions. –Verify age –Enter DOB in the POS device, scan the ID electronically, etc. Retailer Components Point of Sale Practices

36. Electronic Age Verification Devices 5. Electronic Age Verification Devices External devices that check the encoded information on ID s. Verify ! Retailer Components Point of Sale Practices

37. Clerk Assisted Sales 6. Clerk Assisted Sales No self service* No isolated vending machines –Reduces theft –Reduces impulse buy attempts –Sets business tone. Retailer Components Point of Sale Practices * Self-Service has been shown to be more likely to result in underage sales than clerk-assisted sales.

38. Video Cameras 7. Video Cameras –Continuously videotape sales transactions. –Gives the employee a reason to refuse sales (“I can lose my job”) –Supports Management review. –Provides Protection for Clerk. Retailer Components Point of Sale Practices

39. Unusual Occurrence Logs 8. Unusual Occurrence Logs –To be reviewed by the manager and following shifts. –Alerts them to attempted 3 rd party sales, attempted thefts, etc. Retailer Components Point of Sale Practices

40. CSAP Model Hiring – Training - Point of Sale Practices Store Level Supervision and Accountability

41. Supervisory Policies “I told them not to sell without a valid ID”. Telling is often not enough. Managers who fail to supervise bear much of the responsibility for non compliance. Effective supervision protects both the store and the employees. Retailer Components Supervisory Practices

42. Supervisory Policies “I told them not to sell without a valid ID”. Effective Supervision Includes: 1.Supervision and Accountability A. Compliance Checks 2. Use of Videotapes 3. Employee Policies Retailer Components Supervisory Practices

43. Supervision and Accountability 1. Supervision and Accountability –New supervisors should receive intensive training on hiring, training, and retraining protocols. –Understand the company philosophy on underage sales –Should be directed to monitor staff compliance –Compliance should be a component of the supervisor performance review (including compensation, promotion, retention and bonus decisions) Retailer Components Supervisory Policies

44. Supervision and Accountability 1. Supervision and Accountability –Systems should be in place to ensure that employees are reminded of the importance of performing proper ID checks. –One system is the use of internal compliance checks. Retailer Components Supervisory Policies

45. 1A. Internal Compliance Checks Implemented to ensure compliance with store policies. –Conducted at varying times of the day no less than every 6 months. –Use a person of legal age where required to test store policy of requesting and reviewing an ID or a person under the legal age to test compliance with the check of ID and to determine if sales are being made in spite of the presentation of an ID. Retailer Components Supervisory Policies

46. 1A. Internal Compliance Checks –Employees who fail should be notified immediately, instructed in proper procedures, and cautioned. –At the earliest practicable time should be given remedial training and targeted for subsequent inspections. Retailer Components Supervisory Policies

47. 1A. Internal Compliance Checks –Employees who pass and the immediate supervisor should be informed of the success and reminded that passing the tests is noted in the personnel file and taken into consideration on compensation, promotion, and retention. Retailer Components Supervisory Policies

48. 1A. Internal Compliance Checks –Employees who pass and the immediate supervisor should be informed of the success and reminded that passing the tests is noted in the personnel file and taken into consideration on compensation, promotion, and retention. –Employee should also be presented with a tangible reward such as a cash bonus or comp time. Retailer Components Supervisory Policies

49. Use of Videotapes 2. Use of Videotapes –For stores using video tapes, certain policies should be adapted. Tapes should be periodically reviewed by management Should cover a sufficient number of tobacco purchases by young looking customers to ensure compliance. Retailer Components Supervisory Policies

50. Use of Videotapes 2. Use of Videotapes –For stores using video tapes, certain policies should be adapted. Done in a manner that prevents employees from predicting when reviews will be done. Tied into to POS or EAV to date stamp and display the DOB when possible. Retailer Components Supervisory Policies

51. Use of Videotapes 2. Use of Videotapes –For stores using video tapes, Managers should provide feedback to employees and discuss the employee’s performance. Commendations, retraining, etc. Retailer Components Supervisory Policies

52. Employee Policies 3. Employee Policies –Companies should establish incentives and disincentives to reinforce company policies. Incentives can increase adoption and practice of desired policies and can include bonuses or time benefits. Retailer Components Supervisory Policies

53. Employee Policies 3. Employee Policies –Companies should establish incentives and disincentives to reinforce company policies. Disincentives should be established for clerks who sell during compliance checks or fail to follow company policy. Retailer Components Supervisory Policies

54. Employee Policies 3. Employee Policies –Companies should establish incentives and disincentives to reinforce company policies. Disincentives should be established for clerks who sell during compliance checks or fail to follow company policy. These may include repeating training, attending a non-company responsible retailing program, suspension without pay, demotion, or dismissal. Retailer Components Supervisory Policies

55. CSAP Model Public Sector Components Role of Public Agencies Community Based Model: Responsible Retailing Coalitions Role of Community Coalitions Catalyze Community Support Provide Resources Provide Additional Feedback to Retailers Overcome Barriers to Responsible Retailing

56. Technologies for Responsible Retailing The practices identified earlier in this presentation can be viewed as Technologies for Responsible Retailing. Those include technologies for: –electronically reading IDs and calculating age. –for the training of interpersonal skills to minimize conflict with customers. –and even managerial technologies for monitoring point of sale practices. Public Sector Component

57. Technologies for Responsible Retailing Technologies are only effective if they are widely adopted and employed as intended. The challenge is not only to identify and adopt these technologies, but to incorporate them into organizational behaviors. Public Sector Component

58. Role of Public Agencies Public Agencies have an important role in bringing about these organizational changes and in the adoption of these technologies. 1. Insisting that retailers affect change to improve compliance. 2. Assisting retailers in implementing changes. Public Sector Component

59. Role of Public Agencies Enforcement is the driving force for responsible retailing that impels retailers to alter practices to produce higher levels of compliance (Insist). Public sector must also find ways to assist retailers identify and adopt RR technology and to effect organizational change. Public Sector Component

60. One way the Public Sector can assist retailers is through support of Responsible Retailing Coalitions Law enforcement will recognize this responsible – retailing model as an adaptation of Community Policing. Public Sector Component Community Based Model

61. Responsible Retailing Coalitions Community Policing. –Rigorous enforcement is indispensable for achieving high compliance, however, relying only on punitive measures against noncompliant businesses produces limited and short term gains. Public Sector Component

62. Responsible Retailing Coalitions Community Policing. –Rigorous enforcement is indispensable for achieving high compliance, however, relying only on punitive measures against noncompliant businesses produces limited and short term gains. enforcement agents regulated industrybroader community –Community policing brings public safety and enforcement agents into direct dialog with the regulated industry and broader community to identify problems and barriers to high compliance from the perspectives of all stakeholders. Public Sector Component

63. Responsible Retailing Coalitions RRC can embody the public sector’s role in insisting and assisting compliance –Made up of retailers, law enforcement, public health, and community partners. –Community coalitions use a problem – solving approach to RR technologies and ensure their successful integration into retail practice. –Can focus on barriers that impede community wide implementation rather than on individual violations. Public Sector Component Community Based Model

64. Role of Community Coalitions 1.Catalyze Community Support 2.Provide Resources 3.Provide Additional Feedback to Retailers 4.Overcome Barriers to Responsible Retailing Public Sector Component

65. 1. Catalyze Community Support The public health consequences of youth tobacco use and addiction is clearly the basis for bringing retailers, enforcers, public health, and communities together. Public Sector Component Role of Community Coalitions

66. 1. Catalyze Community Support The public health consequences of youth tobacco use and addiction is clearly the basis for bringing retailers, enforcers, public health, and communities together. A Responsible - Retailing Coalition regards the retailer as a corporate citizen and part of the community concerned about the health and welfare of its youth. Public Sector Component Role of Community Coalitions

67. 1. Catalyze Community Support Given the high turnover among clerks and the additional youth who move from occasional to regular purchasers of tobacco products every day, a coalition of community stakeholders is a means to sustain continuous responsible retailing efforts. Public Sector Component Role of Community Coalitions

68. 2. Provide Resources: Some retailers may have internal resources to establish and support effective RR efforts, Others may need assistance. CC Can: Public Sector Component Role of Community Coalitions

69. Provide summaries of State and local laws. Identify best practices. Conduct an examination of appropriate community standards. Create log of non- compliant clerks for background checks. Provide acknowledgement of laws and responsibilities to be signed by clerks. Provide specialty calendars Assist with EAV Technology Facilitate training for clerks, managers, and owners including roll playing. Provide signage Public Sector Component Role of Community Coalitions 2. Provide Resources

70. –CC can augment law enforcement resources by conducting additional compliance inspections to determine compliance which is then provided to retailers. (This is especially useful when resources are limited of there are legal constraints). Public Sector Component Role of Community Coalitions 3. Provide Additional Feedback to Retailers:

71. –CC can augment law enforcement resources by conducting additional compliance inspections to determine compliance which is then provided to retailers. (This is especially useful when resources are limited of there are legal constraints). –Coalitions may assist by recruiting youth who are used by both law enforcement and retailers. Public Sector Component Role of Community Coalitions 3. Provide Additional Feedback to Retailers:

72. –CC can augment law enforcement resources by conducting additional compliance inspections to determine compliance which is then provided to retailers. (This is especially useful when resources are limited of there are legal constraints). –Coalitions may assist by recruiting youth who are used by both law enforcement and retailers. –Frequent compliance inspections provide detailed information on how successful retailers have been in instructing, reinforcing, and supervising their employees. Public Sector Component Role of Community Coalitions 3. Provide Additional Feedback to Retailers:

73. 4. Help Overcome Barriers to Responsible Retailing. A. Work Force Issues B. Limited Enforcement Resources C. Resourcefulness of Adolescent Tobacco Users. Public Sector Component Role of Community Coalitions

74. A: Work Force Issues –Turnover rates are high –Non-committed clerks may be less motivated to follow company policy, especially when in a confrontational situation. –Even well trained employees may make mistakes when lines are long and stores crowded. –Underage customers quickly learn which clerks will sell to them and which shifts they work. Community Coalitions can alert retailers to these problems and help develop solutions. Public Sector Component Role of Community Coalitions 4. Overcoming Barriers to Responsible Retailing

75. B: Limited Enforcement Resources –Merchant education alone or the passage of laws alone has only modest effect on compliance rates. –Enforcement of laws dramatically increases compliance and graduated penalties leading to revocation stimulate retailers to take remedial steps to avoid future violations. Public Sector Component Role of Community Coalitions 4. Overcoming Barriers to Responsible Resources

76. B: Limited Enforcement Resources –Enforcement agencies seldom conduct compliance inspections frequently enough to alter clerk behavior directly (due in part to high turnover). –Enforcement agencies must rely on retailers to train and supervise employees in responsible retailing protocols. CC can work together to provide training and oversight. (especially when L.E. and retailers are included) Public Sector Component Role of Community Coalitions 4. Overcoming Barriers to Responsible Retailing

77. C: Resourcefulness of Adolescent Tobacco Users. A barrier to supply-side youth access reduction is that one or two outlets in a community may supply all the tobacco that youth require. Some aggressive enforcement may simply displace illegal sales. Public Sector Component Role of Community Coalitions 4. Overcoming Barriers to Responsible Retailing

78. C: Resourcefulness of Adolescent Tobacco Users. Community coalitions, especially those that include youth, are better able to identify youth acquisition patterns within the community and help focus efforts toward non-compliant retailers. Public Sector Component Role of Community Coalitions 4. Overcoming Barriers to Responsible Retailing

79. Knowledge Gaps

80. Identification and adoption of practices to eliminate sale to minors are inhibited by a dearth of research on the effectiveness of responsible retailing.

81. Knowledge Gaps Identification and adoption of practices to eliminate sale to minors are inhibited by a dearth of research on the effectiveness of responsible retailing. The following questions and issues were identified as knowledge gaps deserving of investigation and scientific research.

82. Knowledge Gaps Should RR programs contain health content on the consequences of tobacco use? What is the impact of broad community involvement on RR? What are the optimal methods for training employees? What is the impact of store signage?

83. Knowledge Gaps Should the laws and enforcement schemes related to youth access to tobacco and alcohol be made more congruent? What are the appropriate roles and effective use of retailer incentives? What are the costs associated with implementing RR programs?

84. Knowledge Gaps Breakout session moderated by Dr. John Capitman will provide an opportunity to discuss and prioritize these and other questions.

85. The End Questions ?

86. CSAP Model Supervision and Accountability Store Hiring – Training – Point of Sale Practices Store Level Community Level State Local