Rules & ResourcesBylaws & Rules
Chapter E: Article 2
E 2.1 Multi-Copy Sales
(a) All copies or subscriptions purchased in quantities of 11 or more, which in the opinion of the managing director promote the professional or business interests of the purchaser shall be designated in Bureau reports as "Multi-Copy Sales" except as otherwise permitted or prohibited by the following provisions.
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 "Multi-Copy - 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 "Multi-Copy 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) All copies or subscriptions purchased in quantities of 10 or less shall be designated in Bureau reports as "Single Copy Sales" or "Subscriptions: Individual" except as otherwise permitted or prohibited by the provisions hereafter stated.
(c) 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 instead be judged by the rule governing "Mail Subscriptions Special" (See E 2.3 below).
E 2.2 Paid Multi-Copy Sales Defined
(a) Quantity sales shall be set up as multi-copy sales only when the price paid is in accordance with E 1.1.
(b) Multi-copy subscriptions carried beyond expiration of time originally paid for shall be excluded from multi-copy sales and included in non-analyzed non-paid circulation.
(c) 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 ________."
(d) The subscriptions involved in a quantity sale made to an individual, group of individuals or corporation, which have a financial interest in the publication, shall not be included in multi-copy sales but shall be included in non-qualified circulation, 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.
E 2.3 Group (Mail Subscriptions Special)
(a) Publications, which sell subscriptions in quantities to corporations, institutions or individuals for employees, subsidiary companies or branches, shall list subscriptions as "Mail Subscriptions Special" in Paragraph 1, provided the price paid is in accordance with E 1.1, and the records show that copies are addressed and mailed to individuals in the employ of the subscriber, or singly to branches or subsidiary companies. Copies sent in bulk to purchaser for distribution shall be shown as "Average Multi-Copy Same Addressee Sales" unless satisfactory documentary evidence is on file in publisher's office showing that such copies sent in bulk are for distribution to employees, subsidiary companies or branches of such purchasers, in which case the classification, "Mail Subscriptions Special," shall be allowed.
(b) Subscriptions in quantities of ten or less shall automatically qualify for inclusion in "Subscriptions: Individual" provided they conform to regulations in all other respects.
(c) An explanation of Mail Subscriptions Special shall be made in the paragraph devoted to general explanations in Publisher's Statements and Audit Reports and the range of sales stated as follows: "sold in quantities of ________ to ________."
E 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 E 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.
(e) Publications which sell gift subscriptions in accordance with E 1.1 shall list the average number of copies served on subscriptions as "Gift" in Paragraph 1.
(f) The classification shall carry a reference to general explanations, where a full explanation of the total number of subscriptions sold during the period and the price(s) paid shall appear.
E 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.
E 2.6 Association, Member, Organization and Society Subscriptions
(a) Members of an association, organization or society who receive a publication because of membership or a contribution to public radio or television, a portion of the donation is for the publication, whether the subscription to the publication is paid for as part of the dues, contribution or assessment or paid by the member in addition to the dues as a requirement of membership, shall be designated an association, member, organization or society subscribers, and such subscriptions shall be designated as association, member, 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, member, 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 or contribution 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 or contributor at the time of joining the association or organization, 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, member, organization or society (whichever applies)), subscriptions nondeductible from dues. In this class shall be included subscriptions of members or contributors of an association or organization whose dues or payments remain the same whether they elect to accept the publication or to reject the publication.
Every person on becoming a member or contributor of an association or organization must be notified that dues or payment includes a subscription to the publication, and the amount of the dues or payment allocated for payment of the subscriptions. On every bill for dues, payment or contribution, the amount 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 or organization provide that a subscription is part of the association or organization dues or payment of each member or contributor, and the publisher agrees at the time of making application that the stipulation as set forth will be complied with no later than the beginning of the second membership year following the period covered by the initial audit. If compliance is not accomplished within this 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) Association, member, organization or society subscriptions shall not be credited as paid circulation unless at least one cent is paid for same.
E 2.7 Club/Membership Subscriptions
All copies served to individuals as a result of membership in a club or similar organization shall be classified as "club/membership" subscriptions and shall be reported in Publisher's Statements and Audit Reports per the provisions of paragraph (f) below, except as otherwise peritted or prohibited by the following provisions:
(a) The club member is notified of the inclusion of the farm publication subscription at the point of joining the club.
(b) The amount to be allocated to the subscription is in accord with Rule E 1.1 and is presented in a clear and reasonable manner in all written membership information.
(c) The amount to be allocated to the subscription shall be identified in a clear and reasonable manner as either deductible or nondeductible from the total membership fee.
(d) For publications making an average price claim, this amount identified as deductible shall be used in the calculation as the value of the publication.
(e) Nondeductible club/membership subscriptions shall qualify for inclusion in paid circulation under the following conditions:
- (1) The publication included in the Club/Membership program must be editorially homogeneous with the defining characteristics of the club or membership program.
- (2) Annual club/membership dues must be collected from the club/membership members.
- (3) The publication must provide unique editorial and/or benefits to the club/membership members at least quarterly - or within every issue for publications published less frequently than quarterly.
- (4) Club/membership members shall have the option to "opt" out of the club/membership program, but may continue as subscribers at the same or greater price as allocated as part of the membership fee.
- (5) The amount to be allocated to the subscription must be at not less than one cent, and the value of tangible products and services (premiums) plus the amount allocated for the subscription cannot exceed the amount charged as dues.
- (6) The Explanatory Paragraph of ABC Publisher's Statements shall include a full description of the club, to include a listing of all club benefits and, where applicable, the value of club benefits.
(f) Publications which sell club/membership subscriptions shall list the average number of copies served as "club/membership subscriptions," along with identifying the program as being deductible or non-deductible from dues in Paragraph 1, with a full description of the sale in the Explanatory Paragraph.
E 2.8 Partnership Sales
(Also see Policies and Practices, Regarding Newspapers, Farm Publications, and Farm Publications Sold with the Sale of Other Services.)
All copies served to individuals and tied to a partnership agreement (e.g. subscription/single copy of a farm 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 notifed of the inclusion of the farm 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 farm publication subscription, provided these benefits are identical to the benefits offered for the purchase which includes a farm publication subscription.
(e) The total price paid must be at least one cent plus the cost of the purchase without the farm 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 farm publication (single copy price) must be deductible at the point of purchase.
(g) Publications which sell partnership subscriptions and single copy shall list the average number of copies served as "Partnership Subscriptions" and/or "Partnership Single Copy" in Paragraph 1 with a full description of the sale in the Explanatory Paragraph.
E 2.9 Sponsored Educational Multi-Copy Sales
Farm Publications may solicit funds from corporations or other businesses to be used to sponsor the purchase of subscriptions to be distributed to college/university or high school 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.
