Brought in to deal with what was then a national craze of collecting stamps in return for purchases which could be redeemed for a wide range of goods (e.g. Green Shield stamps) the Trading Stamps Act 1964 placed a raft of legal obligations on retailers and promoters.
Topic: Coupon/voucher based promotions New development: Likely repeal of Trading Stamps Act 1964
Background:
Brought in to deal with what was then a national craze of collecting stamps in return for purchases which could be redeemed for a wide range of goods (e.g. Green Shield stamps) the Trading Stamps Act 1964 placed a raft of legal obligations on retailers and promoters. The Act applied to promos offering, in return for a purchase, vouchers of any kind (e.g. a separate docket or a tear-off part of a pack) giving any form of benefit e.g. 10p off next purchase or entry into a prize competition. For instance retailers selling products which included these vouchers had to display details of these offers worded in certain ways and promoters had to put a cash value on each voucher and allow punters to redeem those vouchers for cash if their total face value was 25p or more.
Although we use the past tense, the law is still in force, despite the virtual demise of "trading stamp" schemes as a form of customer loyalty device. It is honoured more in the breach than in the observance, however, and it is difficult to trace any cases of the law being enforced in recent years.
What will change: If the Government’s consultation process goes as expected, the 1964 Act will be swept away and the cash value/redemption rights and obligations with it, although other parts will remain, such as provisions ensuring that consumers who receive products as a loyalty reward enjoy the same rights, for instance as to the quality and performance of the product, as if they had paid cash for them.
Timetable: The consultation process will begin in 2000, so parliamentary time allowing amending legislation could be in force before 2001.
What happens next: The DTI issues a consultation paper.
