Coupons given by a retailer to a customer according to the VALUE of goods purchased. The trading-stamp firm sells the stamps to the retailer and redeems them by exchanging them for goods or cash when presented by the retailer's customer.

The trading- stamp firm makes a profit from selling the stamps to the retailer at a price greater than their value and from the fact that not all of their stamps are redeemed. The retailer benefits in so far as he would lose business if his rival gives stamps. The customer benefits only in so far as he likes collecting stamps, the financial benefit being generally small, and in any case being a cumbersome method of getting a trade discount. The trading Stamps Act of 1964 made it illegal to sell stamps without a cash value.