The Vermont Statutes Online
§ 4021. Definitions
As used in this chapter:
(1) "Person" refers to any individual, partnership, corporation, association, or other organization.
(2) "Trading stamp" refers to 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, which entitles the rightful holder, on its due presentation for redemption, to receive merchandise, service, or cash. This term, however, shall not mean any redeemable device used by the manufacturer or packer of an article in advertising or selling it.
(3) "Trading stamp company" refers to any person engaged in distributing trading stamps for retail issuance by others, or in redeeming trading stamps for retailers, in any way or under any guise. (Added 1959, No. 240, § 1, eff. Sept. 1, 1959.)
§ 4022. Fraud prohibited
A trading stamp company shall not wilfully commit any fraud or make any false representation or resort to any lottery in distributing or redeeming trading stamps in this State. (Added 1959, No. 240, § 2, eff. Sept. 1, 1959.)
§ 4023. Distribution, limitations
A trading stamp company shall not issue or distribute trading stamps in this State after this chapter takes effect unless (1) each stamp has legibly printed upon its face in cents or any fraction thereof a cash value determined by the company, and (2) the rightful holders may, at their option, redeem the stamps in cash when duly presented to the company for redemption in a number having an aggregate cash value of not less than $0.25. (Added 1959, No. 240, § 3, eff. Sept. 1, 1959.)
§ 4024. Registration; bond
(a) A trading stamp company shall not issue or distribute trading stamps in this State after September 1, 1959, until it has filed simultaneously with the Secretary of State on forms specified by him or her:
(1) A statement of registration accompanied by representative samples of its stamps, stamp collection books, stamp redemption catalogues, and stamp distribution and redemption agreement forms, currently used or proposed to be used in this State. Each statement shall provide the following information:
(A) the name and principal address of the company;
(B) the state of its incorporation or origin;
(C) the names and addresses of its principal officers, partners or proprietors;
(D) the address of its principal office in this State where the stamps shall be redeemable in cash;
(E) the name and address of its principal officer, employee or agent in this State;
(F) the addresses of the places where its stamps are redeemable in cash in this State in addition to its principal office in this State;
(G) a short form of its balance sheet, as at the end of its last fiscal year before the filing, certified by an independent or certified public accountant;
(H) unless the principal sum of the bond required by this chapter to be filed by the company is the maximum amount required by this chapter, a statement of its gross income from its business in this State as a trading stamp company during the last fiscal year, certified by an independent or certified public accountant; and
(I) the date when the company first began doing business in this State;
(2) A bond payable to this State and duly executed by the company and a corporate surety qualified to do business in the State, which is conditioned upon the performance by the company of its obligation to redeem in merchandise, service, or cash, at the option of the rightful holder, trading stamps issued by retailers in this State, when they are duly presented for redemption by the rightful holders.
(b) The principal sum of the bond shall be as follows: If the company has not previously done business as a trading stamp company in this State, or if the company's gross income from the business in this State during its last fiscal year was not in excess of $250,000.00, $25,000.00; if the gross income exceeded $250,000.00 but was not in excess of $500,000.00, $50,000.00; if the gross income exceeded $500,000.00 but was not in excess of $750,000.00, $75,000.00; and if the gross income exceeded $750,000.00, $100,000.00.
(c) The statement of registration and the bond shall be filed with the Secretary of State on or before September 1, 1959 and annually thereafter on or before July 1 of each year. The trading stamp company shall pay a registration fee of $250.00 to the Secretary of State at the time of filing each registration statement. The bond shall be effective for the registration year next following, unless the company gives notice of its intention to cease the distribution and redemption of trading stamps in this State.
(d) On the effective date of each new bond, any and all liability on all bonds previously filed under this chapter shall end and all rightful holders of trading stamps who prosecute their claims under this chapter shall prosecute the claims solely against the new bond and only by filing proofs of claim with a court of record in the manner provided in this chapter. (Added 1959, No. 240, § 4, eff. Sept. 1, 1959.)
§ 4025. Claims, enforcement
(a) In the event the company defaults in performing its obligations under this chapter, all rightful holders of trading stamps of the company shall be entitled to make claim against the bond filed under subdivision 4024(a)(2) of this title. Retailers in possession of trading stamps for issuance to their customers shall also be deemed rightful holders entitled to make a claim.
(b) If the company defaults in the performance of its obligation to redeem trading stamps, any rightful holder may file, within three months after the default, a complaint in the Washington Superior Court. Upon the filing of a complaint, the presiding judge shall, upon 14 days' notice in writing sent by certified mail to the company, summarily hear and forthwith make a determination whether there has been a default. If the presiding judge determines that there has been a default, he or she shall give notice of the determination to the company and if the default is not corrected within 14 days, he or she shall order the clerk of the court to publish notice of the default in three consecutive publications of one or more newspapers having general circulation throughout this State and therein require that proof of all claims for redemption of the trading stamps of the company shall be filed with the court, together with the trading stamps upon which the claim is based, within three months after the date of the first publication. Promptly after the expiration of that period, the court shall determine the validity of all claims so filed. Thereupon, the court shall be paid by the surety such amount as shall be necessary to satisfy all valid claims so filed, not exceeding, however, the principal sum of the bond. Upon the failure to pay the amount demanded, the court shall notify the Attorney General who shall bring an action in a court of record, to recover the amount demanded. Upon payment or recovery of the amount demanded, the clerk of the court shall promptly thereafter make an equitable distribution of the proceeds of the bond to the claimants and shall promptly destroy the trading stamps so surrendered. (Added 1959, No. 240, § 5, eff. Sept. 1, 1959; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2017, No. 11, § 9.)
§ 4026. Notice of cessation of redemption
A trading stamp company shall not cease or suspend the redemption of trading stamps in cash in this State without filing with the Secretary of State, at least 90 days before the suspension, written notice of its intention so to do and concurrently mailing a copy of the notice to each retailer within this State which has, at any time theretofore within one year, issued trading stamps which the company is obligated to redeem. (Added 1959, No. 240, § 6, eff. Sept. 1, 1959.)
§ 4027. Penalty
Any trading stamp company which violates any provision of this chapter shall be fined not more than $1,000.00, or imprisoned for not more than one year, or both, and the Superior Court shall have jurisdiction on the complaint of any interested person to restrain and enjoin the violation of any of those provisions. (Added 1959, No. 240, § 7, eff. Sept. 1, 1959; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)