Chapter 5.24
MERCHANDISE COUPONS

Sections:

5.24.010    Merchandise coupon defined.

5.24.020    Permit – Required for sale or distribution – Issuance.

5.24.030    Permit – Statement and deposit required – Scope.

5.24.040    Restrictions governing permittees.

*    For statutory authority for cities to license businesses for revenue and regulation, see Gov. Code § 37101.

5.24.010 Merchandise coupon defined.

For the purpose of this chapter, “merchandise coupon” means any coupon, certificate, ticket, book, card or passbook for which the holder thereof can obtain goods, wares, merchandise or services. (Prior code § 20.27).

5.24.020 Permit – Required for sale or distribution – Issuance.

No person shall sell, offer to sell, solicit the sale of, take orders for, give away, offer to give away, distribute or deliver, for the payment of a fee or charge which is less than 75 percent of the retail value of like goods, wares, merchandise or services in the city, a merchandise coupon, without first obtaining a police permit for such activities. Said police permit shall be issued by the chief of police. (Ord. 948 § 1, 1965; prior code § 20.28).

5.24.030 Permit – Statement and deposit required – Scope.

Each applicant for the police permit as required in CVMC 5.24.020 shall submit to the chief of police the following information in writing:

A. A statement executed by each of the merchants who are to participate in the promotional operation which shall clearly provide authorization for the applicant to include references to their merchandise or products in the proposed merchandise coupon. Said statement shall specify an exact description of the merchandise, product, or service; the duration during which time such merchandise, product or service will be provided upon presentation of the coupon by purchaser; and the specific number of merchandise coupons authorized by such merchant to be distributed or proposed to be distributed by the applicant.

B. The applicant shall provide a written statement reciting specifically the form of salutation and statements or representations which will be made to prospective buyers of the merchandise coupons by the applicant or his agents.

C. In addition to said statements, the applicant shall provide a cash deposit or pledge of cash on a form approved by the city attorney in the amount of $2,500. The conditions of such cash deposit or pledge shall be that the applicant shall comply with all of the ordinances and laws of the city and the state of California regulating the sale of such coupons; that the applicant shall not deviate from the specific authorization of the merchants involved; that the applicant shall not deviate from the proposed statement to be used by applicant or his agents in the sale of said coupons; and said cash deposit shall constitute security for any judgment rendered against applicant for violation of any such ordinances, laws or representations that may be recovered by the city or any person for damages arising out of such violations or misrepresentations made by the applicant or his agents. Said cash deposit or pledge shall inure to the benefit of any person who presents a coupon or certificate requesting performance of the service or delivery of merchandise as described thereon, and should the merchant or service agency fail or refuse to deliver as represented any merchandise or products or to render any service in whole or in part, or if said business is no longer in existence or the ownership of said business may have been transferred; and said cash deposit or pledge may be used to provide the merchandise or product or service set forth in the coupon. Said cash deposit or pledge shall remain in effect for a period of at least one year from the date of the issuance of the police permit to the applicant. (Ord. 948 § 1, 1965; prior code § 20.29).

5.24.040 Restrictions governing permittees.

Every person who engages in any of the activities for which a police permit is required by CVMC 5.24.020 shall:

A. Make no statement or representation or advertise, in the course or scope of such activity, either in writing or orally:

1. That the intended recipient is the winner of any drawing or contest, unless such drawing or contest has been knowingly entered prior thereto by such recipient;

2. That the city, or any department thereof, has approved of such activity.

B. Announce to the intended recipient his name and the name of the individual or organization whom he represents. (Prior code § 20.30).