CVS Takes Over Eckerd

Bad News for Local Consumers

On August 1, 2004 CVS announced that it has completed the acquisition of approximately 1,260 Eckerd drug stores, located mainly in the southern United States. That takeover includes the Eckerd store here at Southbay Shopping Center in Osprey. One major bad news item for shoppers is that CVS, like many supermarkets, will now require customers to use one of their "loyalty" cards in order to get sale prices. Some people may be familiar with these privacy invading cards. In order to get one, you must fill out a form with your personal information. From then on, anytime you use the card, all of your purchases at the store are tracked and stored in a database. According to an article in Information Week, that data may not be as secure as the stores promise. Even if the store allows you to use a fake name and information on the form to get the card,  as soon as you write a check or use a credit card they can tie that information to your "fake" profile.

In addition, many studies of stores that use the loyalty cards, versus those that do not, shows that prices are artificially higher at the stores with the loyalty cards to make it appear you are getting bigger discounts. See CASPIAN's study. "The next time you shop at a store that has a card program and receive a statement telling you how much you "saved," take it with a grain of salt: you could have done far better going to a store that values your privacy and patronage by supplying everyday low prices, without the marketing gimmicks." .Are you really saving $1.00 when the regular price at other stores without the loyalty cards was lower than the everyday price at the stores that have the loyalty card?

In addition, an investigation of pharmacy pricing by WXYZ-TV in Detroit, MI shows price gouging on prescription drugs.

If you want to let CVS know your opinion on their alleged loyalty cards you can call them at  888-607-4287.