TRADING STAMPS.

Otago Daily Times, Issue 21266, 21 February 1931, Page 14

TRADING STAMPS.

STATEMENT BY MINISTER. LAW TO BE AMENDED. (Peb United 'Press Association.) WELLINGTON, February 20. Referring to the Government’s intention, announced in December last, to gazette regulations prohibiting the issue and redemption of all trading stamp coupons, except cash discount coupons, issued by individual retailers, the Minister of Industries and Commerce has made the following statement: —“The issue and redemption of trading stamps by trading stamp companies was rendered illegal by the Trading Stamps Prohibition and Discount Stamps Issue Act, 1008. 6 A Supreme Court judgment held, however, that in some respects the Act did not apply, to certain forms of trading coupons. In view of this judgment it was considered that action under the Act to prevent trading coupon companies from operating would be unsuccessful. To a great extent the trading stamps, which the Trading Stamps Act was originally intended to cover, have for many years ceased to be issued, and there appeared to be no urgent necessity for an amendment of the Act to cover special circumstances. The practice, however, of offering coupons to retail purchasers has for the past year or so grown to considerable dimensions. In the majority of cases the issue and redemption of coupons under various systems at present employed would not be illegal under the Trading Stamps Prohibition and Discount Stamps Issue Act, 1908. It was intended, therefore, to issue regulations with the two-fold purpose of (1) amending an apparent defect in. the 1908 Act (in view of the Supreme* Court decision); and (2) enlarging the scope of the present Trading Stamps Prohibition Act, 1908, to include all forms of trading coupons. Ip a recent action.taken against a coupon trading company in the lower court at Auckland, the magistrate held that a breach of the 1908 Act had been committed, and not only is the issue of coupons thereby made illegal, but'their redemption is also made illegal. The Government recognises that trading coupon companies and retailers (in view of the Supreme Court decision) had acted in good faith in the sale and purchase, distribution, and redemption, of trading coupons, and in order to protect their interests and the interests of the public holding coupons, the Government to-day gazetted regulations restraining trading coupon companies from disposing of their assets without the consent of the Minister of Industries and Commerce. Finally, to overcome the present difficulty and to deal effectively with the general question the Government proposes to bring down amending legislation to provide for (1) extension of the term “trading coupon to include other forms of coupons not contemplated under the 1908 Act; (2) prohibition of the issue of all coupons, other than cash discount coupons, after June 30, 1931; (3) to make legal all redemption of coupns up to September 30, 1931.