CVS Health Corp (NYSE:CVS) has cause for worry considering the latest decision by the state agency known as CalRecycle. This agency says it will stand firm with the enforcement action plan against the company. Failure to comply with the set requirement will have the company pay about $3.6 million as compensation.
A close focus
According to this agency, the company has quite a significant number of retail stores on a statewide scale. The problem arises from the fact that quite a significant number have been conducting their activities poorly. For instance, they haven’t been providing the required California Redemption Value (CRV) in line with their recyclable cans and bottles as well.
The California beverage container recycling law is quite clear in its stipulations. It requires that all supermarkets set up recycling bases within a half-mile radius from where they are. This law asserts that anyone failing to adhere to this clear guideline should pay a $100 fee daily.
This body describes a supermarket as any business with the capacity o fetch about $2 million or more in the form of gross annual sales. They also think about it as any business engaging in the sale of canned goods, dry groceries, perishable items, and nonfood items.
Turn of events
The recent move is being seen as the state’s formulated strategy to offer support to the recycling segment. Asides from that, it also seeks to meet the needs of the consumers. That is in terms of availing convenient recycling options to them daily.
This move has been announced at a time when the recycling industry is being faced with a lot of challenges. One of them is changing global market conditions.
Consumer Watchdog, a nonpartisan public interest group, is one of the parties that have aired out their views. It has described the CVS penalty as the most befitting one. Jamie Court who happens to be the spokesperson of the group says that the whole thing revolves around sending out a strong message. According to him, the retailer deserved the $3.6 million fine considering that the breaching of the set guidelines.