Explanatory note

This Order is made under section 1 of the Regulatory Reform Act 2001. Article 3(1) repeals the Trading Stamps Act 1964, which regulates the issue, use and redemption of trading stamps. The effect of the repeal is that companies issuing trading stamps will no longer have to comply with certain requirements, such as the requirement for the cash value of the trading stamp to appear on the face of the trading stamp, thereby removing a burden on those companies. Article 3(2) preserves section 10(1) of the Trading Stamps Act, which sets out various definitions, for the purposes of the Consumer Transactions (Restrictions on Statements) Order 1976. Article 4 amends that Order to substitute references to section 4(1)(c) of the Trading Stamps Act 1964 (warranty as to satisfactory quality to be implied on redemption of trading stamps) with references to sections 4, 9, 11D and 11J of the Supply of Goods and Services Act 1982. Article 5 imposes burdens on companies supplying goods in exchange for trading stamps by amending the Supply of Goods and Services Act 1982, so that the 1982 Act applies to a contract under which the property in goods is (or is to be) transferred or hired in exchange for trading stamps. Contracts for the exchange of goods for trading stamps will fall within the remit of the 1982 Act and will be treated as contracts for the transfer of goods. After the repeal of the Trading Stamps Act 1964, contracts for the exchange of goods for a combination of cash and trading stamps will fall under the Sale of Goods Act 1979 (1979 c. 54), and will be treated as contracts for the sale of goods.

The Schedule contains repeals or revocations consequent upon the repeal of the Trading Stamps Act 1964.

This Order does not extend to Northern Ireland.

A full regulatory impact assessment of the effect that this instrument will have on the costs of business is available from the DTI Publications Orderline, Admail 528, London SW1W 8YT, telephone 0870 1502 500, fax 0870 1502 333, minicom 0870 1502 100.