TRADING COUPONS

Dominion, Volume 26, Issue 6, 1 October 1932, Page 9

TRADING COUPONS

First Case Under New Act LIMERICK COMPETITION Conducting a limerick competition, a condition of entry being the sendingin of two empty packets in which the advertised goods were sold, led to proceedings being taken in the Magistrate’s Court yesterday by the Department of Industries and Commerce against Smith’s Potato Crisps (N.Z.), Ltd., for an alleged breach of the Trading Coupons Act, 1931. The case is the first to be brought under the provisions of the new legislation, and the prosecution alleges that the empty packet is a coupon within the meaning of the Act, and as such was not redeemed by the unconditional giving of money, as required by the statutory provisions. Mr. E. Page, S.M., said that he would take time to consider his judgment. Counsel for the Department of Industries and Commerce said that the company, which had recently started in Wellington, ran a competition, entries for which closed on August 20. The first prize was a six-valve radio set, and there were 99 other prizes ranging in decreasing value. Entries for this competition had to be accompanied by empty 3d. packets of Smith’s potato crisps. Two packets entitled a purchaser to enter for the competition. The competition, he said, was one in which missing words had to be filled in in certain limericks. It was advertised in a pamphlet. On August 19, the Informant sent in an entry accompanied by two empty packets. It should have reached the company on August 20. The result was published on August 21. Frederick Johnston, advisory accountant to the Department of Industries of Commerce, gave formal evidence of having sent in a solution to the company, which was not awarded a prize. Counsel for the department contended that the empty packet, which gave to the user a right to enter for the competition, came within the definition of a coupon, as implied by the Act. r ’ e only way in which a coupon could be redeemed was by the unconditional giving of a sum of money. If this competition was not a breach of the Act, then, he contended, there was nothing to prevent a company issuing a number of coupons, and stating that In return for, say, 100, and the solving of a problem, a set of silver spoons would be given. The problem might be so simple that 99 persons out of 100 could solve It. Then the Act would be completely evaded. Counsel for the defendant company submitted that the action of the company was quite within the spirit of the Act. He submitted that the document, the empty packet, was not a trading coupon within the meaning of the Act, and that there was nd redemption under section 4.