Chapter 5.40 — DISTRIBUTION OF COUPON BOOKS

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.

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 permit therefore.

The fee for a permit shall be $161.00. The fee shall be accompanied by a bond in the sum of $1,000.00. The procedure to follow, except as otherwise provided in this chapter, in obtaining a permit is that set forth in the Uniform Licensing Procedure set out in Chapter 5.04.

(Ord. No. 88-783, 5-24-88)

The bond required by Section 5.40.030 shall be in a form approved by the City Attorney; shall be executed by the applicant as principal and by a corporation authorized to do business as a surety in the State, as surety; and shall be conditioned that any person injured by any misrepresentation, fraud, breach of contract or failure or refusal to deliver as represented any goods, or render any services, in whole or in part, may recover from the principal and surety, jointly or severally any damages suffered thereby, together with reasonable Attorney's fees.

Every person who engages in any of the activities for which a permit if required by Section 5.40.020 shall:

(a)

Make no statement or representation or advertise in the 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 or officer 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.