COUPON TRADING

Nelson Evening Mail, Volume LXIV, 3 February 1931, Page 3

COUPON TRADING

FLAWS IN PRESENT ACT (By Telegraph—Press Asseoiation) WELLINGTON., 2nd February. A statement regarding tho issue of trading coupons was made to-day by the Minister of Industries and Commerce (tlio Hon. P. A. do la 1 orrellc) who referred to tlio suggestion tluit tho regulations about to be issued to prohibit trading coupon ssytems wore unnecessary. The Minister stated Unit the trading SliiTups Prohibition and Discount Stamps Issue Act was passed in 1008 to prevent Ibo operation of trading stamp companies in New Zealand, and to prevent the issue of trading stamps or coupons. When it appeared that Universal Distributors, 'Limited, and oilier trading stamp companies, wore infringing the provisions of tlio Act, legal advice was at once obtained by the Government with a view to taking action, but, unfortunately, it was found from the judicial interpretation of tlio Act given in tlm case of Brady versus Maddern that successful ad ion was not assured under that Act. By virtue of Ihe. Supreme Court decision in this case it is possible that stamp companies by observing certain precautions may be able to circumvent tlio provisions of the Act. With a view to remedying any possible flaw in the Act, arid' prohibiting all forms of coupon trading other than discounts, going much further than tho original Act, regulations have been prepared and will he gazetted shortly.