F 7.1 Deferred Subscriptions

Under the deferred subscription plan, individual subscribers receive a publication one month or more after the on-sale date. These issues are served from returns. If subscribers pay a qualifying price, these subscriptions are classified as paid, but reported as a separate classification. Deferred subscriptions are not applicable to sponsored sales.

F 7.2 Back Copies

(a) An issue of a publication shall be considered a back copy immediately upon the appearance for sale of the next issue for newsstand copies and the mailing of the next issue for subscription copies.

(b) Back copies served in connection with a subscription offer shall be recognized as paid up to three months preceding the date of the order, provided the subscription offer has specifically included the offer of back copies, or the subscriber has requested a back dating of the subscription, and provided consecutive copies served and are paid for in accordance with rules governing paid circulation.

The number of subscriptions resulting from specific offers involving the distribution of back copies shall be reported in the paragraph of the Publisher's Statements and Audit Reports devoted to general explanations.

(c) Only copies that have been distributed in connection with orders dated during and 30 days after the regular Publisher's Statement period may be included in paid.

(d) Copies served to verified public-place sources are not eligible for service of back copies to be included in paid and verified circulation.

(e) Copies served to verified and sponsored individual-use recipients where the recipient did not request the publication through direct request are not eligible for service of back copies to be included in paid and verified circulation.

(f) A new subscriber who has not specifically ordered back copies as part of a subscription is eligible to be served one issue preceding that which is currently being mailed in the case of bi-monthly and monthly published publications and two issues preceding that which is currently being mailed for publications of greater frequency. Such copies may be included in paid circulation. (In order that publishers conform to a consistent policy of start issues, the above applies irrespective of different cover dates and/or mailing schedules of publications.)

(g) Single issue sales of back copies shall be recognized as paid for a period of three months following the on-sale date of an issue provided the purchaser has specifically ordered the back issues. With prior approval from the managing director, back copies sold from three months to six months following the on-sale date of an issue, and therefore not eligible for inclusion in paid circulation, may be reported as "Other Distribution, Back Copies" with complete explanation in the Explanatory Paragraph. When back issues are packaged with current on-sale issues, only the current issue shall be recognized as paid and only if the amount paid is the full single copy price of the current issue or 50 percent of the combined full prices of all the issues in the package, whichever is highest.

F 7.3 Collection Stimulants

(a) Any inducement offered for prompt payment subsequent to the receipt of a subscription order is a collection stimulant.

Any inducement with a value in excess of 15 cents offered for prompt payment prior to receipt of a subscription order is not a collection stimulant but is a reduced price or premium, whichever applies, and must be so reported. A collection stimulant may be extra copies of the publication or a cash discount or anything of an extraneous nature, and shall be described in the explanatory paragraph of the Publisher's Statements and Audit Reports as a collection stimulant.

(b) The value of the collection stimulant must be taken into consideration in establishing the amount necessary to be paid by the subscriber in order to qualify the subscription as paid as required by the rules relative to Prices, Premiums, Combinations, or any other rules which may apply.

(c) The number of subscribers availing themselves of collection stimulants during any regular Publisher's Statement period shall be reported in the explanatory paragraph of the Publisher's Statement and in the Audit Report covering the Publisher's Statements even though the subscription order may have originated in some prior period.