Smoking habit seriously affects public health in a number of direct and indirect ways. The study reported here took place in Brazil and examined the promotional activities of the tobacco industry at the point of sale, with particular reference to their impact on children. Tobacco control policies are generally in place in developed countries, and smokers typically develop the habit while still young. Trained researchers visited a stratified sample of 429 retail outlets in the city of São Paulo, comprising the local equivalents of bars, snack bars, luncheonettes and pubs. Data for analysis were collected by direct observation at the point of sale and interviews with the person deemed to be in charge of the outlet visited. The results indicate that the tobacco industry is displaying its products within full view of children and making use of the sales' incentives offered to the retailer. The findings contribute significantly to the study of the effect of promotion at the point of sale on young smokers and can inform the policy debate on the increasing regulation of tobacco marketing promotional methods.