Chapter C: Article 20 - Canadian Rules

(Also see ABC Policy Regarding the Sale of Carrier Delivery Circulation and Single Copy Sales of Newspapers, Sale of Subscriptions and Single Copy Sales of Magazines and Farm Publications with Other Services.)

Paid circulation is hereby defined to be subscriptions and single copy sales of newspapers which have been paid for by the purchasers, not for resale, at not less than one cent per copy or per subscription.

(a) Subscriptions for which payment is at least 50 percent of the publisher’s basic price for the term and frequency may be served for no longer than three consecutive months, immediately following the expiration date and such arrears may be included in paid circulation.

Subscriptions for which payment is less than 50 percent of the publisher’s basic price for the term and frequency may not be served arrears copies as “paid” circulation.

(b) Subscriptions to any newspaper received as a result of an offer by a publisher that stipulates that part of the subscription term is free will qualify for inclusion in paid circulation only when a contractual agreement exists for the full term and frequency of the subscription and is in accord with the provisions of this rule. Without such contractual agreement, those copies that are free shall not qualify as paid circulation and instead shall be set up in unpaid circulation.

(c) Unless stated otherwise, the amount paid by the purchaser/subscriber required to qualify circulation as paid, is net of all other considerations.

For purposes of defining paid circulation, the phrase ‘net of all considerations’ means that the purchaser has paid a qualifying price for the single copy or subscription in addition to the value of any other product or service bundled with the subscription or single copy offer.

For example, an offer of a subscription that includes an inducement of ‘free’ movie tickets valued at $6.00 would require the consumer to pay $6.00 plus a qualifying amount for the subscription in order for the sale to qualify as paid circulation.

Also see ABC Policy Regarding the Sale of Carrier Delivery Circulation and Single Copy Sales of Newspapers, Sale of Subscriptions and Single Copy Sales of Magazines and Farm Publications with Other Services.)

(a) Basic prices: Types of service for which a basic price shall be recognized and reported in Bureau reports are:

(1) Single Copy Sales.

(a) One only basic price for city zone.

(b) One only basic price for retail trading zone.

(c) One only basic price for "all other."

(2) Term subscriptions by mail.

(a) One only basic price for each regularly established duration in the city zone, one only basic price for each established duration in the retail trading zone and one only basic price for each established duration in "all other."

(3) Home Delivered Circulation.

(a) One only basic price for each regularly established duration in the city zone, one only basic price for each established duration in the retail trading zone and one only basic price for each established duration in "all other."

(4) Market Segment Circulation.

(a) One only basic price for each regularly established duration in the city zone, one only basic price for each established duration in the retail trading zone and one only basic price for each established duration in "all other."

(b) The basic price for each regularly established duration in each of the above zones must be not less than one cent of the Home Delivered price for the same duration for the same zone.

In addition, and regardless of the basic price established, all subscriptions must be sold at no less than one cent of the Home Delivery price for the same duration for the same zone of the market segment basic price for the same duration for the same zone, whichever is highest.

(5) Motor route subscriptions outside the city zone in the retail trading zone - one only basic price for each regularly established duration.

Motor route subscriptions in "all other" - one only basic price for each regularly established duration.

(6) In case more than one price (either single copy or subscription) is regularly charged in any zone, the price regularly charged for the majority of the circulation for each type of service in that zone shall be considered the basic price for that type of service in that zone.

(7) Prices which have been in regular use for certain areas in the retail trading zone or in "all other" and which have been equal to the basic price for the zone involved but which, upon an increase in the basic price for that zone, have remained at the old basic price shall be set up in the price paragraph in Bureau Reports as "Lower Than Basic Prices" and the total number of subscriptions received as such "lower-than-basic" prices stated.

(8) National newspapers may establish up to three geographic based pricing zones and establish basic prices by delivery type and frequency for each of these zones. Each pricing area may be established by the newspaper itself, provided the area is comprised of continuous geographic units such as postal code boundaries, census units, counties, towns, etc. In addition, each pricing area must abut one other pricing area.

Basic prices per area may change at the publisher's discretion; however, pricing areas may change only at the beginning of an audit period, and only after notification to the Bureau.

Publisher's Statements for those national newspapers opting to establish prices per this rule shall include a description of each of the geographic pricing units.

(b) Basic prices: Types of service for each of which a basic price shall be recognized in Bureau reports for newspapers reporting circulation on newspaper designated market basis instead of zones are:

(1) Single Copy Sales.

(a) One only basic price for county of publication.

(b) One only basic price for remainder of newspaper designated market.

(c) One only basic price for "all other."

(2) Term subscriptions by mail.

(a) One only basic price for each regularly established duration in the county of publication, one only basic price for each established duration in the remainder of newspaper designated market and one only basic price for each established duration in "all other."

(3) Home Delivered Circulation

(a) One only basic price for each regularly established duration in county of publication of the city of publication, one only basic price for each established duration in the remainder of newspaper designated market and one only basic price for each established duration in "all other."

(4) Market Segment Circulation.

(a) One only basic price for each regularly established duration in county of publication of the city of publication, one only basic price for each established duration in the remainder of newspaper designated market and one only basic price for each established duration in "all other."

(b) The basic price for each regularly established duration in each of these markets must be not less than one cent of the Home Delivered price for the same duration for the same market.

In addition, and regardless of the basic price established, all subscriptions must be sold at no less than one cent of the Home Delivered price for the same duration of the same zone.

(5) Motor route subscriptions outside the county of publication in the remainder of the newspaper designated market - one only basic price for each regularly established duration.

Motor route subscriptions in "all other" - one only basic price for each regularly established duration.

(6) In case more than one price (either single copy or subscription) is regularly charged in any area, the price regularly charged for the majority of the circulation for each type of service in that area shall be considered the basic price for that type of service in that area.

(7) Prices that have been in regular use for certain areas in the remainder of newspaper designated market or in "all other" and which have been equal to the basic price for the area involved but which, upon an increase in the basic price for that area, have remained at the old basic price shall be reported in the price paragraph in Bureau Reports at "Prices Lower Than Basic" and the total number of subscriptions received at such "lower than basic" prices stated.

(c) In all rules where the price or subscription price is referred to, the phrase means the basic price.

(d) Newspapers offering electronic editions may establish a separate basic price structure for Single Copy Sales and Home Delivered by reporting zone for the electronic edition or default to the print product’s basic prices.