WASHINGTON – Last month, the National Association of Attorneys General (NAAG) sent a letter to the CEOs of nine oil companies asking them to help eliminate any synthetic drug sales from retail locations operating under their brand names. In their letter, NAAG asked the oil companies to take immediate action, including prohibiting franchisees from selling any synthetic drugs and revoking the company relationship with any station or convenience store that sells any kind of synthetic drug.

Yesterday, NACS sent a response letter to NAAG , emphasizing the organizations’ willingness to cooperate with law enforcement to ensure compliance with all state and federal laws pertaining to synthetic drugs while also clarifying relevant aspects of the business operations and relationships between oil companies and retailers. The letter was also co-signed by the Society of Independent Gas Manufacturers (SIGMA).

In part, the letter clarifies that “In our industry, use of a brand name does not signify ownership or control of a retail outlet by a brand licensor or sub-licensor. With very few exceptions, the owners and occupants of retail locations are independent business persons over whom the licensors have no control. In fact, our licensor-licensee relationships have been carefully designed and structured to avoid any confusion about the fact that individual retail outlets, licensed to employ a brand name, are independent businesses. Today, the integrated oil companies own and operate fewer than 3% of retail outlets in the United States.”

NACS and SIGMA close the letter by emphasizing a willingness to discuss specific ways in which fuel marketers and retailers can work with NAAG and other groups to help accomplish mutual objectives.