AGO 1989-027.

• Case Date: March 01, 1989
• Court: Kansas

Kansas Attorney General Opinions 1989. AGO 1989-027. March 1, 1989ATTORNEY GENERAL OPINION NO. 89-27The Honorable Edward F. Reilly State Senator Third District State Capitol Room 255-E Topeka, Kansas 66612 Re: Crimes and Punishments--Trading Stamps--Trading Stamps or Similar Devices Redeemable in Merchandise or Other Thing of Value Prohibited Synopsis: The practice of "cross-store couponing" whereby two or more retailers offer coupons redeemable for each other's products sold in the usual course of business is excepted from the trading stamp act. Cited herein: K.S.A. 21-2801; 21-2803. * * * Dear Senator Reilly: You have requested our opinion as to whether "cross-store couponing" violates the Kansas trading stamp act, K.S.A. 21-2801 et seq. This act generally prohibits furnishing, upon purchase of merchandise, coupons redeemable in cash, merchandise or other thing of value. The practice of cross-store couponing involves the cooperation of two or more retailers in the same community offering coupons for discounts on one another's products. For example, retailer A will offer coupons to customers who purchase goods or services from retailer A. These coupons will be redeemable by retailer B for discounts on goods or services retailer B sells in its usual course of business. In turn, retailer B will offer, with the purchase of goods or services from retailer B, coupons redeemable by retailer A for discounts on goods or services sold in the ordinary course of retailer A's business. Thus, each coupon offered will be redeemable by a retailer for products which the...