D 1.1 Paid Circulation Defined

Paid circulation is hereby defined to be copies of publications that have been paid for by the purchasers, not for resale, under the following conditions, viz.:

(a) If the sale is a single copy sale, it shall be paid for at not less than one cent.

(b) Subscription Sales:

On term order for any period the subscription must be paid for at not less than one cent.

A price for a period of less than one year that is less than a pro rata of the basic annual price shall not be considered a basic price.

(c) Subscriptions may be served for no longer than 25 percent of the original term ordered, with a maximum of three consecutive months immediately following the expiration date and such post-expiration copes ("post-expires") may be included in paid circulation. For publications that have a break in service, e.g., published only during the winter months or all months except the three-month period during the summer, the subscriber may receive post-expiration ("post-expires") service of 25 percent of the original term ordered up to three consecutive months immediately following the expiration date or up to all consecutive issues published between expiration and the break in service plus a maximum of one month following the break in service, with the total number of copies served in post-expires limited to the number of issues published within three months, and said service can be included in paid circulation.

Post-expiration copies, if served, must be distributed prior to the distribution of the next regularly scheduled issue.

(1) For publications that are published on a weekly or bi-weekly frequency, the publisher may opt to use a month end common expire date. For publications using the common expire date, incremental copies served during the month of expire (one to four copies per subscription) shall be considered paid circulation not post-expire copies. If used, the practice shall be disclosed in the explanatory paragraph of ABC reports.

(d) Subscriptions to any publication 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 of the subscription and is in accord with the provisions of Paragraph (b) above. Without such contractual agreement, those copies which a subscriber is informed are free shall not qualify as paid circulation and instead shall be presented in unpaid circulation.

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

D 1.2 Prices

(a) Basic prices (subscriptions and/or single copy) are the prices at which the publication may be purchased by anyone, at any time, for a definite duration. No special, reduced or higher price, no matter how often or how regularly repeated, even though established through announcement in the masthead or by any other means, shall be considered a bona fide basic price.

(b) Basic prices must be reported in the semi-annual Publisher's Statements. Only those prices appropriately established as basic prices in the judgment of the managing director will be recognized by the Bureau as basic prices.

(c) Publisher's Statements and Audit Reports shall include an analysis of sales for the period based on sales price as a percent of basic price. For purposes of this classification, premium values, if any, shall be included in the analysis. All sales are to be classified as either:

(1) sold at basic or higher than basic

(2) sold at between 75% and basic price

(3) sold at from 50% to 75% of basic price

(4) sold at from 25% to 50% of basic price

(5) sold at less than 25% of basic price

Subscriptions sold for periods less than one year are to be classified based on a pro rata of the basic annual subscription price.

Subscriptions sold for periods of greater than one year are to be classified based on the established basic price for that term. If there is no basic price for the term, such sales are to be classified based on a pro rata of the annual basic price.

In addition, the explanatory paragraph shall include an annotation of any and all prices which individually generate 5% of more for subscription sales for the period covered by the report.

(d) When any change in basic prices occurs, a period of six months following the date of the price increase is allowed to process subscriptions sold before the date of the price increase at previous basic and lower than basic prices.

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

(1) Single Copy Sales - One only basic price for each country or geographical area as stipulated by the publisher.

(2) Term Subscriptions.

(a) One only basic price for field served for each regularly established duration.

(b) One only basic price for subscriptions sold outside the field served for each regularly established duration.

(c) One only scale of such basic prices for each country or geographical area as stipulated by the publisher.

(d) One only basic price for regularly scheduled special edition circulation subscriptions.

(3) Digital Editions

(a) One only basic price for field served for each regularly established duration.

(b) One only basic price for subscriptions sold outside the field served for each regularly established duration.

(f) A cash discount not to exceed 5 percent, payable within 30 days of the start or renewal of service, may be allowed on the sale of new or renewal subscriptions sold at the basic subscription price without affecting the status of such sales in the Bureau's reports.

(g) Business Publications may opt to report average per-copy prices and average annualized prices in Publisher's Statements and Audit Reports.

The calculation of Average Annualized Subscription Price will be as follows: Total gross production revenue minus revenue from credit cancelled orders, minus premium values from paid orders only, divided by gross production copies minus credit cancel production copies.

The yield of an average copy price shall also be extended by the one-year frequency (copies served in one-year period) to yield an average annualized subscription price. The base period of any Publisher's Statement shall be the twelve months ending with the prior Publisher's Statement period (e.g. December ending statements calculation will be based on production revenue and dollars, premium values and credit cancel information for the twelve months ended with the prior June 30.)

In addition, any publisher opting to include an average price calculation per the above requirements may also include a calculation which includes premium values in the gross production revenue number.

D 1.3 Subscription Offer Based on Acceptance Unless Declined

Subscription resulting from offers based upon the assumption that the offer has been accepted unless specifically declined shall qualify as paid only upon satisfactory evidence that money has been collected to qualify the subscription.