Rules & Resources
Bylaws & Rules

Chapter D: Article 2

D 2.1 Multi-Copy Sales

(a) All copies or subscriptions purchased in quantities of 2 or more, which in the opinion of the managing director promote the professional or business interests of the purchaser, shall be designated as Multi-Copy Sales, except as otherwise permitted or prohibited by paragraphs (b) through (l). Multi-Copy sales, either term subscription or single issue, wherein the copies are shipped in bulk to the purchaser who controls the final distribution shall be reported as "Multicopy - Same Addressee" in Bureau reports.

Multi-Copy sales, either term subscription or single issue, wherein the copies are individually addressed and mailed, shall be reported as "Sponsored Individually Addressed" in Bureau reports. If the copies are mailed in bulk, satisfactory documentary evidence must be maintained in the publisher's office showing that such copies are for distribution to designated recipients by name and/or title.

(b) If the number of subscriptions involved in a single multi-copy sale exceeds 5 percent of the total average paid term subscriptions of all other types and/or non-paid direct request, as reported in Paragraph 1 of the Publisher's Statement for the period immediately preceding that in which the transaction takes place, the subscriptions involved in that sale which are in excess of 5 percent shall be fully explained, including whether copies were individually addressed or purchased for redistribution, in the Explanatory Paragraph.

(c) If the number of copies of a single issue involved in a multi-copy sale exceeds 1 percent of the "Total Average Paid Circulation" and/or non-paid direct request, exclusive of Multicopy - Same Addressee and Sponsored Individually Addressed, as reported in Paragraph 1 of the Publisher's Statement for the period immediately preceding that in which the transaction takes place, the copies involved in that sale which are in excess of said 1 percent may be included in Single Copy Sales as Multicopy - Same Addressee or Sponsored Individually Addressed. A full explanation of the sale, including whether copies were individually addressed or purchased for redistribution, shall be made in the Explanatory Paragraph.

(d) In the case of initial audits or where there is no Publisher's Statement for the period immediately preceding that in which the transaction takes place, calculations shall be made on the basis of conditions existing during the period in which the sale is made.

(e) Multicopy - Same Addressee or Sponsored Individually Addressed sales shall be included in Publisher's Statements and Audit Reports in Paragraph 1. Single issues Multicopy - Same Addressee or Sponsored Individually Addressed sales shall be included in "Single Copy Sales" and shall be included in the "Total Average Paid Circulation." Analysis of Multicopy - Same Addressee and/or Sponsored Individually Addressed sales shall be made in the explanatory paragraph in such manner as to show the type or character of the sales.

(f) Copies served in post expires to multi-copy term subscriptions shall be excluded from paid circulation and included in non-paid distribution.

(g) Multi-copy sales, if included in paid, shall be fully explained in the body of the Audit Report and the Publisher's Statement, giving details of their character and nature, showing price received, how distributed and any other amplification necessary to make possible a clear analysis of their value including the range of sales as follows: "sold in quantities of __________ to __________."

(h) The subscriptions involved in a quantity sale made to an individual, group of individuals or corporation, which individual, group of individuals or corporation has a financial interest in the publication, shall not be included in multi-copy sales but shall be included in non-paid distribution, unless it can be proved to the satisfaction of the managing director that the sale was made for the benefit of the purchaser and not for the benefit of the publication.

(i) Subscriptions purchased in quantities by corporations, institutions or individuals for their own employees, subsidiary companies or branches are not subject to the provisions of Paragraph (a) but shall be reported as "Individual" in ABC reports provided the records show that copies are addressed and mailed to individuals in the employ of the subscriber or singularly to branch offices or subsidiary companies. If the copies are mailed in bulk, satisfactory documentary evidence must be maintained in the publisher's office showing that such copies are for distribution to employees, subsidiary companies or branch offices of such purchasers.

(j) Quantity sales shall be reported as multi-copy sales only when the price paid is in accordance with D 1.1.

D 2.2 Sponsored Educational Multi-Copy Sales

Business Publications may solicit funds from corporations or other businesses to be used to sponsor the purchase of subscriptions to be distributed to college/university students enrolled in studies within the "Field Served" of the publication. Such distribution may qualify as paid circulation and reported as multi-copy sales provided:

(a) funding is solicited for the purchase of subscriptions to a specific program;

(b) if the sponsoring business is also an advertiser to the publication, the sponsorship amount must be incremental to the advertising purchased by the sponsor;

(c) publishers allocate at least one cent per subscription (or single copy) for the sponsorship funding for each sale;

(d) recipients be advised that the subscription/single copy are being provided from sponsorship funding;

(e) no distribution is made unless the publication has received funding in advance; and

(f) the paragraph related to general explanations include a description of the sponsor(s), quantities purchased, amount allocated by the publisher from the sponsorship funding for each subscription/single copy, and the average is included in paid circulation.

D 2.3 Association, Organization and Society Subscriptions

(a) A member of an association, organization or society who receives a publication because of membership in such association, organization or society, whether the subscription to the publication is paid for as part of the dues or by assessment or paid by the member in addition to the dues as a requirement of membership, shall be designated as an association, organization or society subscriber and such subscriptions shall be designated as association, organization or society subscriptions, whichever applies, provided that their records are made available to the Bureau for audit.

Subscriptions to a privately owned publication purchased by an association, organization or society, which does not submit its records to audit by the Bureau, shall be included in bulk, provided such subscriptions meet the general qualifications of bulk subscriptions.

(b) There are two classifications of memberships as explained in the following paragraphs. Full explanation of the type of membership shall be carried in Bureau reports.

The first class shall be known as (association, organization or society (whichever applies)), subscriptions deductible from dues. In this class shall be included subscriptions of members which gives its members the option of accepting the publication or rejecting it and of reducing their dues by a definite named sum if they reject the publication, such sum to be not less than one cent. This option must be made known to the member at the time of joining the association, organization or society, and be clearly stated on each bill for dues or invoice in such manner as to make remittance cover a voluntary subscription to the publication as well as membership payments.

The second class shall be known as (association, organization or society (whichever applies)), subscriptions nondeductible from dues. In this class shall be included subscriptions of members of an association, organization or society whose dues remain the same whether they elect to accept or to reject the publication.

Each person on becoming a member of the association, organization or society must be notified that the dues include a subscription to the publication and the amount of the dues allocated for payment of the subscription. On every bill for dues the amount of the dues allocated for payment of the subscription must be stated.

(c) The foregoing provisions of the above Paragraph (b) shall not apply to an applicant provided that the bylaws of the association, organization or society provide that a subscription is part of the association, organization or society dues of each member and the publisher agrees at the time of making application that the stipulations as set forth will be complied with not later than the beginning of the second membership year following the period covered by the initial audit. If compliance is not accomplished within the established time limit, the publication shall be automatically dropped from membership in the Bureau as provided in 2.13, Paragraph (d) of the bylaws.

(d) In all paragraphs of Bureau reports designated to describe subscriptions or sales methods which are not used by association publications, the fact that it is an association, organization or society publication shall be noted.

(e) Association, organization or society subscriptions shall not be credited as paid circulation unless at least one cent is paid for same.

D 2.4 Gift Subscriptions

(a) A Gift Subscription shall be considered one which is given as a normal expression of friendship and which does not promote the business or professional interests of the donor.

(b) To qualify, Gift Subscriptions must be paid for in accordance with D 1.1.

(c) Subscriptions which are given to promote the professional or business interests of the donor shall be judged by the rule governing term subscriptions in bulk or mail subscriptions special whichever applies.

(d) In no case where an order (or orders) from a single donor covers more than fifty subscriptions shall the subscriptions be regarded as Gift Subscriptions but shall instead be classified as term subscriptions in bulk, provided they conform to the rules governing bulk sales.

D 2.5 Gift Subscriptions Not Recognized as Paid Circulation

(a) Gift Subscriptions paid for by subscription salespersons or others who are compensated by merchandise or other rewards in lieu of cash commission.

(b) Gift Subscriptions which have been paid for by one who has been offered a premium and the amount received is less than the full value of the premium plus one cent.

(c) Gift Subscriptions paid for by a participant in a contest conducted by the publisher or agent.

D 2.6 Non-Deductible Trade Show Subscriptions

(a) Individual subscriptions received as a result of paying a registration fee at a trade show, business seminar, or similar type of business meeting, where the recipient does not have the option of deducting the subscription price from the registration fee, shall qualify as paid circulation, and be reported as "Subscriptions - Individual" under the following conditions.

(b) The amount of the registration fee allocated for the subscription must be clearly stated on the registration form.

(c) The amount allocated for the subscription must not be less than one cent.

(d) Such subscriptions reported in Paragraph 1(a) shall be footnoted to provide a complete explanation in the paragraph devoted to general explanations in Bureau reports.

(e) Such subscriptions shall be reported separately in the paragraphs devoted to authorized prices and channels of subscription sales as "Sold as non-deductible at business seminars or trade shows."

D 2.7 Definition of Recipient Qualification

The "Definition of Recipient Qualification" in Bureau reports shall be a statement describing specific businesses, industries, titles, occupations and/or functions, with clearly defined limits, to whom the publication is directed. It shall exclude statements of a promotional nature and be subject to editing by the managing director. Publishers shall maintain auditable documentation, not more than three years of age, to substantiate that all non-paid circulation to the field served and all qualified paid circulation meets the recipient qualification definition. Paid circulation pending qualification to field served and/or recipient qualification shall be included in Bureau reports.

D 2.8 Subscriptions Sold with Other Publisher Goods/Services

Individual subscriptions sold in conjunction with sales of other publisher goods/services, where the recipient does not have the option of deducting the subscription price from the purchase price, shall qualify as paid circulation, and be reported as "Subscriptions - Individual" under the following conditions:

(a) The amount of the purchase price allocated for the subscription must be clearly communicated during the sales transaction and stated on the sales invoice.

(b) The amount allocated for the subscription must be at a qualifying price.

(c) Subscribers may be sold only one subscription in conjunction with a "package" of the Publisher's goods or services per year.

(d) Subscriptions may only be sold in conjunction with other goods or services related to the field served.

(e) Such subscriptions reported in Paragraph 1A must be footnoted to provide a complete explanation in the paragraph devoted to general explanations in Bureau reports. The explanation must identify the range of subscriptions sold with the package of publisher goods/services and a description of package offered by the publisher.

(f) Such subscriptions shall be reported separately in the paragraph devoted to premium usage as "Sold with Other Publisher Goods/Services."

D 2.9 Partnership Sales

(Also see Policies and Practices, Regarding Newspapers, Farm Publications, and Farm Publications Sold with the Sale of Other Services.)

All copies purchased by individuals and tied to a partnership agreement (e.g. subscription/single copy of a business publication partnered with a purchase, a product, or other service) shall be classified as "Partnership" subscriptions or single copy sales and shall be reported in Publisher's Statements and Audit Reports per the provision of paragraph (g) below, except as otherwise permitted or prohibited by the following provisions:

(a) The purchaser is notified of the inclusion of the business publication subscription at the point of purchase.

(b) The amount to be allocated to the subscription is presented in a clear and reasonable manner in all written information.

(c) The amount to be allocated to the subscription is identified in a clear and reasonable manner as being deductible from the purchase price.

(d) The value of other benefits may be calculated as the total cost of purchasing the partnership element without the business publication subscription, provided these benefits are identical to the benefits offered for the purchase which includes a business publication subscription.

(e) The total price paid must be at least one cent plus the cost of the purchase without the business publication subscription and shall be the same as the amount identified as deductible for the subscription value. For publications making an average price claim, this amount identified as deductible shall be used in the calculation as the value of the publication.

(f) In the case of single copy sales, the purchase price of the business publication (single copy price) must be deductible at the point of purchase.

(g) Publications that sell partnership subscriptions and single copy, shall list the average number of copies served as "Partnership Subscriptions" and/or "Partnership Single Copy" and a full description of the sale in the Explanatory Paragraph.