aggregating in money value not less than five cents in each lot, shall redeem them either in goods, wares, merchandise, or lawful money of the United States at the option of the holder thereof and at the value in lawful money printed on the face thereof.

Sec. 6389. When not to apply.-This chapter and the penal statutes relating thereto shall not apply to tickets, coupons, or other vouchers placed by a merchant or manufacturer in or upon packages of goods sold or manufactured by him if such tickets, coupons, or other vouchers are to be redeemed by such merchant or manufacturer. (97 v. 278, sec. 5.)

OKLAHOMA

Stat. Ann. (1936), tit. 21

Sec. 1051. Lottery defined-Issuance of tickets by merchants.A lottery is any scheme for the disposal or distribution of property by chance among persons who have paid, or promised, or agreed to pay any valuable consideration for the chance of obtaining such property, or a portion of it, or for any share of or interest in such property, upon any agreement, understanding, or expectation that it is to be distributed or disposed of by a lot or chance, whether called a lottery, a raffle, or a gift enterprise, or by whatever name the same may be known: Provided, It shall not be a violation of the lottery or gambling laws of this State for a bona fide resident merchant or merchants of a city or town, acting together or in conjunction with the chamber of commerce or commercial club thereof, to issue free of charge numbered tickets on sales of his merchandise, the corresponding stub of one or more of which tickets to be drawn or chosen by lot by a representative or representatives of said chamber of commerce or of said commercial club in the manner set forth on said tickets, the numbered stub or stubs so drawn to entitle the holder of the corresponding numbered issued ticket to a valuable prize donated by said merchant. (R. L. 1910, sec. 2470; L. 1929, ch. 19, p. 16, sec. 1.)

Sec. 1052. Lottery unlawful-Nuisance.-Every lottery is unlawful, and a common public nuisance. (R. L. 1910, sec. 2471.)

PENNSYLVANIA

Stat. Ann. (Purdon, 1931), tit. 18
Trading Stamps and Other Devices

Sec 1564. Giving customers tickets or checks representing value. Any merchant, manufacturer, importer, retailer, or dealer

doing business within this Commonwealth who shall offer, give, or sell, or authorize, or permit any agent, salesman, or employee to offer, give, or sell any purchaser or customer any ticket or tickets, check or checks, or other tokens or memoranda entitling such purchaser or customer to demand or receive money or any article of value, shall be deemed guilty of a misdemeanor, and, upon conviction, shall be sentenced to pay a fine not less than ten, nor exceeding one hundred dollars, or suffer imprisonment not exceeding one year, or either, or both, at the discretion of the court.24 (1885, June 3, P. L. 55, sec. 1.)

Sec. 5. All schemes and devices whereby any person or corporation shall sell, give, or distribute any stamp, trading-stamp, cash discount stamp, amusement stamp, check, coupon, or other similar device to any purchaser of goods, wares, or merchandise, which will entitle the holder of such stamp, trading-stamp, cash discount stamp, amusement stamp, check, coupon, or other similar device, on presentation thereof, either singly or in definite numbers, to receive either directly from the vendor or indirectly through any other person or corporation, some indefinite and undescribed article, the nature and value of which are unknown to the purchaser of said goods, wares, and merchandise at the time of the purchase thereof, are hereby declared to partake so much of the nature of a lottery as to be detrimental to the public morals, and are hereby declared to be illegal. (L. 1909, c. 349; L. 1923, c. 401, sec. 5.)

Sec. 6. No person or corporation shall sell, give, or distribute any stamp, trading-stamp, cash discount stamp, amusement stamp, check, coupon, or other similar device, on presentation thereof either singly or in definite numbers, to receive either directly from the vendor or indirectly through any other person or corporation, some indefinite and undescribed article, the nature and value of which are unknown

24

"This act was held unconstitutional on the ground that the title thereof did not clearly express its contents. While the language of the title applied only to the suppression of "lottery gifts" the remainder of the statute prohibited trading stamp schemes in which no element of chance was involved. Commonwealth v. Moorhead, 7 C. C. 513 (1890).

25

A former statute (Pub. Laws (1898-1899), c. 652) which permitted the use of trading stamps only if redeemed by the merchant issuing them was held unconstitutional in State v. Dalton, 22 R. I. 77, 46 Atl. 234 (1900). The court held that as the issuance of trading stamps did not constitute a lottery, it was beyond the regulation of the legislature.

to the purchaser of said goods, wares, and merchandise at the time of the purchase thereof. (Id., sec. 6.)

Sec. 7. No person or corporation shall, either directly or indirectly, give, sell, or distribute any stamp, trading-stamp, cash discount stamp, amusement stamp, check, coupon, or other similar device with the promise, express or implied, as an inducement to the purchase of some article of goods, wares, or merchandise, that the holder of said. stamp, trading-stamp, cash discount stamp, amusement stamp, check, coupon, or other similar device is to receive on presentation thereof and in return therefor some gift, prize, or gratuity, the nature and value of which are unknown to the purchaser of said goods, wares, or merchandise at the time of the purchase thereof, said promise to be fulfilled only upon the presentation of said stamp, trading-stamp, cash discount stamp, amusement stamp, check, coupon, or other similar device, together with such a number of like stamps, tradingstamps, cash discount stamps, amusement stamps, checks, coupons, or other similar devices, as the issuer or redeemer thereof may elect shall be redeemed at any one time. (Id., sec. 7.)

Sec. 8. Whoever shall violate any provision of the preceding 3 sections shall be guilty of a misdemeanor, and for each such offense shall be punished by a fine of not less than $100.00 nor more than $500.00 or by imprisonment for a term not exceeding 3 months: Provided, however, That nothing in the preceding sections of this chapter shall be deemed to prohibit or make illegal the annual or semiannual distribution by chance, of prizes, souvenirs, or favors by any club, society, lodge, or association at its dance, dinner, entertainment, or outing where such distribution is purely incidental to such dance, dinner, entertainment, or outing or when the entire net proceeds of such dance, dinner, entertainment, or outing is devoted to charity, if such club, society, lodge, or association has first obtained the written permission for such distribution, in towns, from the town sergeant, in cities, from the police commission or police commissioner, if such there be, otherwise from the chief of police of the town or city where such dance, dinner, entertainment, or outing is held and said permitting authority is hereby authorized to grant such permit when he is satisfied that such distribution comes within this proviso. (P. L., 1931, c. 1691.)

SOUTH CAROLINA

Code (1932)

Sec. 1237. No gift or premium to be offered to the purchaser.No person shall sell, exchange, or dispose of any article of food, or

attempt to do so, upon any representation, advertisement, notice, or indictment that anything other than what is specially stated to be the subject of the sale or exchange is or is to be delivered or received, or in any way connected with or a part of the transaction as a gift, prize, premium, or reward to the purchaser. Any person violating any of the provisions of this section shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall be punished by a fine not exceeding one hundred dollars, or by imprisonment not exceeding thirty days. (Cr. C. 22, sec. 133; Cr. C. '12, sec. 278; Cr. C. '02, sec. 206; R. S. 192; 1887, XIX, 812.)

UTAH

Rev. Stat. Ann. (1933)

Sec. 96-0-1. Conditions of unlawful issue-Process agentBond.-It shall be unlawful for any person to sell, issue, transfer, or deliver to any other person within this state any trading stamp or stamps to be sold, issued, transferred, or delivered by such other person upon, in connection with, or as the result of, a sale of any goods, wares, merchandise, or other commodity or thing of value, unless and until the person in the first instance so selling, issuing, transferring, or delivering the same shall have established an office within this state where all books of account relating to the sale, issue, transfer, or delivery of trading stamps in this state shall be kept, and shall have filed with the secretary of state an appointment of a process attorney upon whom process in all civil actions may be served, and a good and sufficient bond as hereinafter specified. Any person violating any provision of this section is guilty of a misdemeanor. (C. L. 17, sec. 6160.)

Sec. 96-0-2. Bond-Actions-Parties-Limitation of action.Said bond shall be in the sum of $20,000, payable to the State of Utah, and shall be executed by the person furnishing the same as principal, together with at least one corporate surety, and shall provide that the principal shall, upon presentation by the lawful holder of the required quantity of trading stamps in the proper form, redeem the same according to the terms of the contract under which they were issued, and that the said principal shall pay all taxes imposed by law and all fines and penalties imposed for a violation of any law of this state. Said bond shall be in such form as the Secretary of State shall prescribe. Whenever any such bond shall become forfeited for breach of any condition therein contained, any person injured thereby may sue thereon, or all persons so injured

may join in prosecuting one action, but any such action must be commenced within one year after the cause of action accrued. (C. L. 17, sec. 6161.)

-

Rev. Stat. Ann. (Supp., 1939)

Sec. 96-0-3. Trading stamps, etc., to show redeemable value in cents. No person shall sell or issue any stamps, trading stamp, cash discount stamp, check, ticket, coupon, or other similar device, which will entitle the holder thereof, on presentation thereof, either singly or in definite number, to receive, either directly from the vendor or indirectly through any other person, money or goods, wares, or merchandise, unless each of said stamps, trading stamps, cash discount stamps, checks, tickets, coupons, or other similar devices shall have legibly printed or written upon the face thereof the redeemable value thereof in cents. (L. '35, ch. 102, sec. 1.)

Section 96-0-4 provides that the issuer shall, upon presentation, redeem the same either in goods, wares, or merchandise, or in cash, good and lawful money of the United States, at the option of the holder thereof, and any number of such stamps shall be redeemed at the value in cents printed upon the face thereof, and it shall not be necessary for the holder thereof to have any stipulated number of the same before demand for redemption may be made.

Section 96-0-5 provides that the distributor or issuer shall be liable to the holder thereof for the face value thereof, and shall upon presentation redeem the same, either in goods, wares or merchandise, or in cash, good and lawful money of the United States of America, at the option of the holder thereof, and in such case any number of stamps shall be redeemed at the value in cents printed upon the face thereof, and it shall not be necessary for the holder thereof to have any stipulated number of the same before demand for redemption may be made.

Sec. 96-0-6. Violation-Penalty.-Any person, firm, or corporation who shall violate any of the provisions of this act shall be deemed guilty of a misdemeanor. (L. '35, ch. 102, sec. 4.)

No statutory provisions.20

VERMONT

A former statute (Acts 1898, No. 123) prohibiting the use of trading stamps in connection with the purchase of merchandise is unconstitutional as being repugnant to the privileges and immunities clause and the due process clause of the Federal Constitution. There is no element of chance in the scheme, and the use of trading stamps being lawful, even if demoralizing to legitimate business, the statute is an invalid exercise of the police power of the State. State v. Dodge, 76 Vt. 197, 56 Atl. 983 (1904).