TRADING-STAMP COUPONS.

Press, Volume LXVII, Issue 20168, 21 February 1931, Page 20

TRADING-STAMP COUPONS.

.. » ' POSITION EXPLAINED. STATEMENT BY MINISTER. (pBJSjS ISSOCIMIOH TBLSOSUI.) WELLINGTON, .February 20. , Referring to the Government's intention,: announced in December last, to' Gazette regulations prohibiting the issue' and redemption of all tradingstamp coupons except cash discount coupons issued by individual retailers, the Minister for Industries and Commerce has , made the following statement:—':' ■ ' 1 "The issue and redemption of trading stamps by trading-stamp companies was rendered illegal by the Trading Stamps Prohibition and Discount Stamps Issue Act, 1908. 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 therefore considered that action under the Act to prevent trading coupon companies operating would be unsuccessful toa 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 so argent necessity for the amendment of the Act to cover special circumstances. The practice, however, of nffaring 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 the 'various systems at present employed would not be illegal under the' Trading Stamps Prohibition and Discount Stamps Issue Act, 1908. It waß intended therefore to issue regulations with the two-fold purpose Of (1) amending the apparent defect in the 1908 Act (in view of the Supreme Court decision) ; (2), enlarging the scope of the present .Trading Stamps Prohibition Act,. 1908, to include all forms of tradiag coupons. "1% the recent action taken against &' coupon trading company in the lowerCourt at Auckland, the Magistrate, held' that a breach of the 1908 Act had'been committed, and not only is-the issue; of coupons made illegal, but also their redemption is also made illegal."' * The Government recognised, stated, t#e. Minister, that the trading .coupon com?-' panics and the retailors" (in'view o£, : tsie. Supreme Court' decision) t had 'aeteO& good faith in the sale and purchase f'distribution, and,redemption of, coupons. In order,, to protect, interests' and -of the ptib- , lie holding coupon,'the -Government&Kt I day Gazetted regulations trading coupon companies fro^dSipfi#. ling of their assets without the Con&tf of himself as Minister tot Indus trie Commerce. To overcome tfca'ffiaaps and•, deal; effectively general question, • thei poses „ to .bring "dtiwni tion to providff' for: t ■ . * /Sg-sfe'" . '(I) An; extension . of"'' "trading coupon? * to include »J#|sther' forma of coupons not coofqutplateil under the 1908 ,'4rf . (2) Prohibition o£ the coupons. other- -than, 'eaeh4-£|Beett6bt ,< coupons ajEfcer,3une 30th, 1931. V