Esta ley enmienda la Ley Núm. 111 de 28 de junio de 1969, conocida como la "Ley de Sellos de Comercio", para aclarar que los fabricantes y empacadores pueden emitir sellos o cupones canjeables por efectivo o servicios, y para eliminar el límite de cinco (5) dólares para el canje de sellos o cupones por productos.
(H. B. 1968) (Reconsidered) (No. 75) (Approved February 17, 2003)
To amend Section 2 of Act No. 111 of June 28, 1969, known as the "Trading Stamps Act." for the purpose of clarifying that manufacturers and packers can issue trading stamps or coupons to be redeemed for cash or services and to provide further that these can issue trading or stamps or coupons to be redeemed for products in excess of five (5) dollars.
Act No. 111 of June 28, 1969, known as "Trading Stamps Act." 10 LPRA Sec. 991 et. seq. (the "Act No. 111") makes a crime of the use of "trading stamps' for promotional ends. The term "trading stamps" was defined in broad terms to include "stamp, coupon, ticket, certificate, letter, card, slip of paper or other similar promotion device," enabling the purchaser who receives the same to acquire goods, instruments, merchandise or services, and to solicit or procure goods or cash from any person or entity.
According to the Statement of Motives of Act No. 111, the use of trading stamps by some merchants as a promotional device before the approval of such Act, created an unfavorable environment for other merchants who were forced to use them to be able to compete with the former, transferring this cost directly to the consumer. Before 1969, there were some companies dedicated to selling trading stamps to retail businesses
(i.e., supermarkets, department stores, etc.). The participating businesses gave away trading stamps when a client bought goods at their establishment. For instance, they gave 10 trading stamps for each dollar of purchased merchandise. The consumer collected the trading stamps necessary to redeem them for merchandise (i.e., toasters, radios, etc.) or cash.
To be able to compete, many businesses were forced to participate in this trading stamp scheme, purchasing them from the companies that were in this business. Participation in the scheme added a layer of unforeseen costs for many merchants, which were ultimately transferred to the consumer. The effect was that the participating merchants increased the prices of the products, merchandise and services to be able to compensate for the costs incurred when entering the scheme. The system of trading stamps was inefficient for the industry, giving the appearance that it was paying the cost of the stamps with purchased merchandise, goods or services.
Since the principal objective of Act No. 111 was to eradicate the business of third parties selling trading stamps, and not to limit manufacturer's promotional campaigns for their products and merchandise, the Sixth Legislative Assembly of the Commonwealth of Puerto Rico, while approving the statute, provided for an exception for coupons and stamps issued by manufacturers and packers of products and merchandise, when said stamps or coupons could be exchanged, without cash or accompanying cash, when the sum was not to exceed five (5) dollars, for any of the manufacturer's products or for other products or merchandise.
The exception concerning manufacturers and packers, incorporated in Section 2 of Act No. 111, however, only mentions stamps and coupons that can be redeemed by making reference to stamps and coupons that can be
redeemed for other products and merchandise, without specifically mentioning stamps or coupons that could be redeemed for cash.
A typical manufacturer's coupon would be one that offers a rebate in cash if the manufacturer's coupon known as, a "mail rebate coupon" or "cash coupon," is sent by mail or redeemed for cash or services in a business establishment. Presently, in Puerto Rico and in other jurisdictions, manufacturers are selling their products with said "rebate" coupons, which offer cash if they are sent through the mail or if they are redeemed for cash or services in the establishment where the products are sold.
This Legislature understands that the legislative intent in approving Act No. 111 was not to prohibit manufacturers or packers from offering discounts in the price of their products through their own promotional coupons. The manufacturer's coupons are not acquired or purchased through third parties (which was the scheme that Act No. 111 intended to eradicate), and as it is already available in other jurisdictions, would not cause an increase in local prices at the manufacturer's level. Additionally, the manufacturers' or packers' stamps that allow the exchange for other products or merchandise, or for cash or services are only those that are issued as part of the sales transaction of the product or merchandise.
Not allowing the manufacturer's coupons to be redeemed for cash or services would injure Puerto Rican consumers who would not enjoy the benefit of a discount in the price that various manufacturers offer through their coupons. We further understand that the imposed limit of five (5) dollars (sic), due to which said limit must be eliminated.
In light of the above, this Legislature deems it necessary to amend Act No. 111 for the purposes of clarifying that manufacturers and packers may, as an exception, offer promotional coupons that can be redeemed for cash or
services, and to eliminate the imposed limit of five (5) dollars in trading stamps for products or merchandise for the manufacturer's or packer's products or services when accompanied with cash. We understand that the provisions of this Act shall serve as an incentive for economic activity since it directly benefits the Puerto Rican consumer.
Section 1.- Section 2 of Act No. 111 of June 28, 1969, is amended to read as follows: "Section 2.- This Act shall not apply to the use, issuance, distribution, exchange, supply of any stamp, coupon, ticket, certificate, letter, card, slip of paper or other similar promotion device, issued, distributed, supplied or exchanged by a manufacturer or packer in regard to the sale of his products manufactured or packed when such stamps, coupons, tickets, certificates or cards, slips of paper or other similar promotion device, can be exchanged, (1) without money in cash or accompanied by money in cash for any product or services of said packers or for a particular product or service which shall be specified, although not packed or manufactured by the said packers or manufacturers, or by cash or credit towards purchase."
Section 2.- Effectiveness This Act shall take effect immediately after its approval.
I hereby certify to the Secretary of State that the following Act No. 75 (H.B. 1968) (Reconsidered) of the $5^{ ext {th }}$ Session of the $14^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to amend Section 2 of Act No. 111 of June 28, 1969, known as the "Trading Stamps Act." for the purpose of clarifying that manufacturers and packers can issue trading stamps or coupons to be redeemed for cash or services and to provide further that these can issue trading or stamps or coupons to be redeemed for products in excess of five (5) dollars, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $9^{ ext {th }}$ of March of 2004.
Elba Rosa Rodríguez-Fuentes Director