Wal-Mart to Stop Selling Ozone Depleting Refrigerants

KANSAS CITY, Missouri, January 26, 2004 (ENS) - Wal-Mart Stores has agreed to stop selling ozone depleting refrigerants as part of the terms of a court ordered settlement with the U.S. Department of Justice over sales of the substances to customers not authorized to possess them.

Under the terms of a consent decree that was filed in federal court in Kansas City Thursday, Wal-Mart agreed to pay a $400,000 civil penalty for the illegal sales.

The settlement resolves 20 alleged violations of the Clean Air Act since 1998 by Wal-Mart's Sam’s Club stores in 11 states.

In addition, Sam’s Club stores nationwide will stop selling refrigerants that contain federally controlled ozone depleting substances except for installation in automobile air conditioners, refrigerators and freezers on store premises by certified technicians.

“This settlement will aid in protecting the ozone layer worldwide by eliminating from the Earth’s atmosphere harmful refrigerants, such as chlorofluorocarbons (CFCs) that leak from industrial appliances and have contributed to the depletion of the Earth’s ozone layer in recent years,” said U.S. Assistant Attorney General Tom Sansonetti.

The stratospheric ozone layer situated 10 to 30 miles above the Earth's surface protects humans and animals from the Sun's ultraviolet rays, which can cause skin cancer and eye cataracts and suppress the body's immune system. CFCs have also been identified as greenhouse gases, contributors to global warming.

The lodging of the consent decree settles Clean Air Act violations at Sam’s Club stores in Alabama, Florida, Georgia, North Carolina, Illinois, Iowa, Minnesota, Missouri, New York, Pennsylvania and West Virginia.

Only certified technicians are permitted to install and reclaim ozone depleting substances. (Photo courtesy Alliance for Responsible Atmospheric Policy)

The complaint alleges that some Sam’s Club stores sold ozone depleting refrigerants used for automobile air conditioners or other kinds of refrigeration systems to customers who were not certified and did not conduct checks to determine whether or not they were certified.

Three of the violations allegedly occurred in Missouri. In each of those sales, said Todd Graves, U.S. Attorney for the Western District of Missouri, Wal-Mart allegedly failed to require evidence that the purchaser was a certified technician.

One of the Missouri violations involved the sale of a 30 pound container of refrigerant CFC-12, while the other two involved the sale of similar sized containers of the refrigerant HCFC-22.

It is illegal to vent CFCs or HCFCs to the atmosphere under the Clean Air Act. Penalties of up to $25,000 per day per violation can levied and prison terms can be given to anyone who knowingly vents CFC-12 or HCFCs into the atmosphere. The regulations require that CFC-12 and HCFCs be recycled, and sales of refrigerant are restricted to certified technicians.

“These chemicals are regulated by the federal government because they contribute to ozone depleting pollution,” said Graves. “Retailers have an obligation to responsibly monitor the sale of these products. Today’s settlement fairly resolves this case, and signals that we will pursue those who violate the law and contribute to the depletion of the ozone layer.”

The fine amounts to a light slap on the wrist for Wal-Mart Stores, Inc. which reported net sales for the five week period ending January 2, 2004, of $33.6 billion, an increase of 11.3 percent over the $30.25 billion in the similar period in the prior year.

Sales for the 48 week period ending January 2 were $237.62 billion, an increase of 11.3 percent over $213.53 billion in the similar period in the prior year.

This case follows other settlements with violators of the stratospheric ozone protection provisions of the Clean Air Act. In the fall of 2000, Meyer’s Bakeries, Inc. settled its corporate violations and converted all its appliances to non-ozone-depleting refrigerants.

In the summer of 2001, Air Liquide, a producer of industrial gases, settled its corporate violations in addition to converting its refrigerant systems to non-ozone-depleting systems.

Most recently, in July 2003, Sara Lee bakeries settled violations and agreed to convert all their industrial process refrigeration appliances to refrigerant systems that do not deplete the ozone layer.