SECTIONS 17750-17773 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 17750-17773

17750. "Trading stamp" means any stamp or similar device issued in
connection with the retail sale of merchandise or service, as a cash
discount, or for any other marketing purpose, that entitles the
rightful holder, on its due presentation for redemption, to receive
merchandise, service, or cash.

17751. "Trading stamp" also means any stamp or similar device
issued as a gift or as a consideration in any transaction other than
in connection with the retail sale of merchandise or service, by a
trading stamp company that also issues those devices in connection
with the retail sale of merchandise or service, as a cash discount,
or for any other marketing purpose, and that may be redeemed by the
rightful holder on the same basis as, or interchangeably with, any
trading stamp issued as described in Section 17750.

17752. "Trading stamp" does not include any redeemable device used
by the manufacturer or packer of an article, in advertising or
selling the article, or any redeemable device issued and redeemed by
a newspaper, magazine, or other publication.

17753. "Trading stamp" does not include any coupon, ticket,
certificate, card, or other similar device prepared by a merchant
using that device and distributed by the merchant to his or her
customers, if the device is redeemable only by that merchant for, or
in connection with, the purchase of specific articles of merchandise
carried in his or her stock.

17754. The Legislature finds and declares that the devices
described in Sections 17752, 17753, and 17760 are not employed in
connection with improper activities of irresponsible trading stamp
companies.

17755. "Trading stamp company" means any person engaged in any
manner in distributing trading stamps for retail issuance by others
or in redeeming trading stamps for retailers.

17756. "Person" means any individual, partnership, corporation,
limited liability company, association, or other organization.

17757. "Organization" means any partnership, corporation, limited
liability company, or association.

17758. "Issue" includes use, distribute, give away, sell, furnish,
and licensing that use, distribution, gift, sale or furnishing.

17759. "Merchant" includes retailer, person dealing in services, or
person in a similar capacity.

17760. The provisions of this chapter do not apply to nonprofit
merchant organizations that guarantee redemption of trading stamps
that are exclusively issued and redeemed by that organization or its
members and where all of those members have jointly and severally
assumed liability for all stamps so issued and where the redemption
is from stock in trade of, or in cash from, any and all members of
the organization. The assumption of liability shall be evidenced by a
written agreement between the organization and its members setting
forth the joint and several liability of the organization and its
members for redemption of trading stamps issued by the organization.

17761. It is unlawful for any person to issue any trading stamp
unless the stamp has imprinted on it both of the following:
(a) The name of the trading stamp company that is responsible for
the redemption of the stamp.
(b) The redeemable value of the stamp in cents, mills, or fraction
of cents.

17762. Any trading stamp company shall redeem upon presentation any
trading stamp that it has issued, either in merchandise, service, or
cash, at the option of the rightful holder. However, if the trading
stamp company only offers to redeem the trading stamp in cash, the
rightful holder of the trading stamp shall not have the option of
receiving merchandise or service and shall only receive a cash
redemption. Trading stamps shall only be presented for redemption in
cash in an amount aggregating not less than one dollar ($1).

17763. It is unlawful for any person to willfully issue or redeem
any trading stamp without the consent of the trading stamp company
that issued the stamp.

17764. Nothing in this chapter shall prohibit any person from
redeeming, pursuant to contract, any trading stamps issued on or
before December 31, 1997.

17765. Any person who advertises the giving of trading stamps, or
who gives trading stamps, with the sale of any merchandise or
service, shall give those stamps, if the purchaser requests them,
with the sale of all items of merchandise or service offered for sale
at his or her place of business, unless that person advertises that
he or she does not give trading stamps on certain items of
merchandise or service and designates those items or services in the
advertisement or posts a list of those items or services in a
conspicuous place in his or her place of business.

17766. Nothing in this chapter shall be construed as requiring the
giving of trading stamps with any sale of merchandise or service when
the giving of those stamps or any premium with the particular
merchandise or service is specifically prohibited by law or
regulation.

17767. If a trading stamp company fails to redeem any of its
trading stamps, any rightful holder of those stamps may bring a civil
action for damages within three years of the failure to redeem.

17768. Any merchant who has issued to his or her customers or other
persons the trading stamps of any trading stamp company subject to
this chapter, and who proposes to discontinue the issuance of the
stamps of that company for any reason, shall post a notice in at
least 18-point type at every location in his or her establishment
where stamps were or are issued, containing at least the following
information:
(a) The fact that trading stamps will no longer be issued by the
merchant and the date of discontinuance of issuance.
(b) The name and address in this state of the trading stamp
company that is responsible for the redemption of those stamps.
(c) The fact that the stamps are redeemable either in merchandise,
service, or in cash, at the option of the holder, and stating the
cash redemption value of each stamp, and that it is necessary for the
holder to present stamps in an amount aggregating not less than one
dollar ($1) for redemption in cash.
(d) The notice required by this section shall be posted at least
seven days prior to the date on which the issuance of trading stamps
is discontinued, and shall remain posted for 30 days after that date.

17769. No trading stamp company shall cease issuing trading stamps
unless it gives written notice at least 90 days prior to that
cessation to each merchant that has at any time within one year
issued trading stamps that the company is obligated to redeem.

17770. Any person violating any provision of this chapter shall be
liable for a civil penalty not to exceed one thousand dollars
($1,000) for each violation, and any superior court of this state
shall have jurisdiction in equity on the complaint of any interested
person to restrain and enjoin the violation of any of the provisions
of this chapter.

17771. Any person who willfully violates any provision of this
chapter shall upon conviction be fined not more than five thousand
dollars ($5,000).

17772. Trading stamps issued by a trading stamp company subject to
this chapter are exempt from the Corporate Securities Law of 1968
(Division 1 (commencing with Section 25000) of Title 4 of the
Corporations Code).

17773. Nothing in this chapter, nor in this code, shall be
construed to require that the cash or merchandise value of trading
stamps be stated or set forth on any sign, statement, or other
advertising media that either advertises or offers those stamps, or
advertises or indicates the price of gasoline or motor fuel, whether
on any dispensing apparatus or elsewhere, and that is displayed at or
about any place of business offering for sale or selling gasoline or
other motor vehicle fuel.