Section § 17750

Explanation

This law defines a "trading stamp" as any stamp or similar item given when you buy products or services at retail. These stamps can be redeemed for more products, services, or cash as a form of discount or as part of a marketing campaign.

“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.

Section § 17751

Explanation

This law defines 'trading stamps' as stamps or similar items given as gifts or as part of transactions that aren't related to retail sales. It includes stamps from companies that also provide these in retail settings, as cash discounts, or for any marketing purpose. These stamps can be redeemed just like those that are given during retail sales.

“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.

Section § 17752

Explanation

This section clarifies that 'trading stamp' does not include coupons or redeemable items from manufacturers or publications like newspapers and magazines when they are used for promotions or sales.

“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.

Section § 17753

Explanation

This law clarifies that a 'trading stamp' is not the same as coupons or other devices given out by a merchant if these are only redeemable for specific items that the merchant already sells. Essentially, it's saying that when a merchant gives customers a coupon or certificate that can only be used in their store for items they stock, it's not a 'trading stamp'.

“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.

Section § 17754

Explanation

This law states that the specific items mentioned in Sections 17752, 17753, and 17760 are not used by dishonest trading stamp companies for improper activities.

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.

Section § 17755

Explanation
A 'trading stamp company' is any business or person involved in giving out trading stamps to be used by retail stores or in redeeming those stamps on behalf of retailers.
“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.

Section § 17756

Explanation

This section defines the term 'person' to include not just individual people but also various types of business entities like partnerships, corporations, limited liability companies, and associations.

“Person” means any individual, partnership, corporation, limited liability company, association, or other organization.

Section § 17757

Explanation

This section defines what is meant by the term 'organization.' It includes any partnership, corporation, limited liability company, or association.

“Organization” means any partnership, corporation, limited liability company, or association.

Section § 17758

Explanation

In this context, the word "Issue" encompasses a variety of actions related to products or services, such as using them, handing them out, selling them, giving them away, or granting licenses for any of these activities.

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

Section § 17759

Explanation

This section defines a 'merchant' as not just someone who sells goods, but also anyone involved in providing services or operating in a similar way.

“Merchant” includes retailer, person dealing in services, or person in a similar capacity.

Section § 17760

Explanation

This section states that nonprofit merchant organizations are exempt from certain rules if they handle trading stamps. The exemption applies only when these stamps are solely issued and redeemed by the organization or its members. All members must agree in a written document to cover each other's liabilities for the stamps, and the redemption can be in goods or cash from any member's stock.

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.

Section § 17761

Explanation

This law makes it illegal to give out trading stamps unless each stamp clearly shows two things: the name of the company that will redeem the stamp and how much the stamp is worth in money, whether that's in pennies, smaller fractions of currency, or parts of pennies.

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

Section § 17762

Explanation

This law says that if you have trading stamps from a company, the company must let you exchange them for merchandise, services, or cash. However, if the company only allows cash exchanges, you can't choose merchandise or services. Also, you need to have stamps worth at least $1 to exchange them for cash.

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).

Section § 17763

Explanation

This law makes it illegal for anyone to intentionally use or accept trading stamps without permission from the company that originally issued them.

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.

Section § 17764

Explanation

This law allows people to redeem trading stamps that were issued on or before December 31, 1997, as long as they have a contract for it.

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

Section § 17765

Explanation

If you are offering trading stamps with your goods or services, you must provide them for all items if the buyer asks, unless you clearly indicate which items won't come with stamps either in ads or on a visible list at your business.

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.

Section § 17766

Explanation

This law clarifies that if there's a law or rule that bans giving trading stamps or rewards with certain products or services, this chapter doesn't change that ban. In other words, it doesn't force businesses to offer trading stamps if it's illegal for them to do so.

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.

Section § 17767

Explanation

If a company that issues trading stamps does not exchange them for their promised value, the person holding the stamps can sue the company for damages. They need to do this within three years of the company not honoring the stamps.

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.

Section § 17768

Explanation

If a merchant wants to stop giving out trading stamps to customers, they must post a clear notice in their store. This notice should include the date they will stop issuing stamps, the name and address of the company responsible for redeeming the stamps, and the options for redeeming the stamps, which can be for merchandise, service, or cash. The notice must be up at least seven days before stopping the stamps and stay posted for 30 days after they stop.

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)CA Business & Professions Code § 17768(a) The fact that trading stamps will no longer be issued by the merchant and the date of discontinuance of issuance.
(b)CA Business & Professions Code § 17768(b) The name and address in this state of the trading stamp company that is responsible for the redemption of those stamps.
(c)CA Business & Professions Code § 17768(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)CA Business & Professions Code § 17768(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.

Section § 17769

Explanation

This law states that if a company that provides trading stamps decides to stop issuing them, the company must notify any merchants who have issued those stamps in the last year. The notice should be given in writing at least 90 days before they stop.

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.

Section § 17770

Explanation

If someone breaks a rule in this chapter, they can be fined up to $1,000 for each time they break the rule. Additionally, anyone who is concerned about these violations can ask a superior court to legally stop the person from continuing to break these rules.

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.

Section § 17771

Explanation
If someone deliberately breaks a rule in this chapter, they can be fined up to $5,000.
Any person who willfully violates any provision of this chapter shall upon conviction be fined not more than five thousand dollars ($5,000).

Section § 17772

Explanation

This law states that trading stamps given out by trading stamp companies do not have to follow the rules set out in the Corporate Securities Law of 1968, which is a set of regulations for securities in California.

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).

Section § 17773

Explanation

This law says that businesses don't have to display the cash value or merchandise value of trading stamps on signs or ads, like those for gasoline or motor fuel prices, even if these are at gas stations or similar places.

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.