F 1.1 Paid Circulation Defined

Paid circulation is hereby defined to be copies of publications which 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.

(c) Subscriptions may be served for no longer than 25% of the original term ordered, with a maximum of three consecutive months, immediately following the expiration date and such "post expire copies" 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 expire service of 25% 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 post-expiration copies served 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.

(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 reported as 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.

(f) Circulation obtained as a result of an offer of one additional copy of the publication, made by a publisher, for actions related to a current paid subscriber providing an e-mail address for use by the publication in future communications, shall qualify as paid provided clear and conspicuous notice is given to the subscriber as to the terms of the extension being given and action required. Average paid circualtion served as a result of this extension shall be reported in the explanatory paragraph of Publisher's Statements and Audit Reports.

F 1.2 Prices

(a) Publisher-suggested 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 publisher-suggested price.

(b) Publisher-suggested prices must be reported in the semi-annual Publisher's Statements. Only those prices appropriately established as publisher-suggested prices in the judgment of the managing director will be recognized by the Bureau as publisher-suggested prices. In situations where a publisher changes single copy price during the Publisher’s Statement period, reporting in the semiannual Publisher’s Statement shall be the average of all issues’ single copy cover price published in the period.

(c) Publisher-suggested prices: Types of service for which a publisher-suggested price shall be recognized and reported in Bureau reports are:

(1) Single-Copy Sales - one only publisher-suggested price.

(2) Subscriptions - one only publisher-suggested price for each regularly established duration.

(3) One only scale of such publisher-suggested prices for each country as stipulated by the publisher.

F 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 from the recipient to qualify the subscription.

F 1.4 Average Price

(Until further notice, production copies and production revenue from international sales for publications published in the United States shall be excluded from the calculation of average price data.)

(a) Magazines shall be required to report average per copy prices and average annualized prices in Publisher's Statements and Audit Reports.

(b) The calculation of average Annualized Subscription Value (average 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.

This yield of an average per copy price shall also be extended by the one-year frequency (copies served in a one-year period) to yield an average annualized subscription price.

(c) Production revenue and production copies from Sponsored Sales, non-deductible club/membership sales and subscriptions transferred from other publications shall be excluded from the calculation of average price data.

(d) The base period for any Publisher's Statement shall be the twelve months ending with the prior Publisher's Statement period (e.g. December ending statement 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.)

(e) Publishers may include a recalculation of Average Annualized Subscription Value (average subscription price) to include premium values and credit cancel production copies. This optional reporting will be identified as "gross (optional) average subscription price" if included in Publisher's Statements and shall include both per-copy and annualized values.

(f) For publications newly admitted to membership the analysis shall be mandatory no later than the third Publisher's Statement issued following release of an initial audit.

(g) Publications distributed primarily outside of North America with established prices in foreign currencies shall not be required to report average price.

(h) Publications not reporting an average price reporting as a result of section (g) of this rule shall be required to make a reporting of subscriptions sold in the period and at the publisher's suggested price and other prices.

(i) If an Audit Report shows discrepancies in the average price of more than 10 percent between the auditor's findings and the Publisher's Statements, the subsequent two Publisher's Statements released after the audit shall repeat from the last preceding Audit Report the facts concerning said discrepancies and the difference found in a prominent notice on its front page.

F 1.5 Premium Reporting

Subscriptions sold with premiums which generate production equal to or greater than 1 percent of total production for the Publisher's Statement period must be listed in the "Use of Premiums" paragraph. Subscriptions sold with premiums which generate less than 1 percent of the total production for the reporting period need not be listed in the "Use of Premiums" paragraph even though the production from same is to be reported. The premiums reported in the "Use of Premiums" paragraph must represent at least 98 percent of total production.