F 8.1 Premium Defined

(a) Premiums are anything offered to a subscriber at time of solicitation, in addition to regular issues of the publication itself, and shall be reported in Bureau reports as a premium, regardless of whether said extraneous thing be given with or without additional payment above the subscription price and whether or not such extraneous thing is given only to new subscribers or to all subscribers. In addition, any presentation to current subscribers which, in the opinion of the managing director, implies future receipt of such extraneous things in conjunction with continued (or future) subscriptions will cause renewal subscriptions to be judged as premium induced. The number of subscriptions, whether new or renewal, involving such premiums taken during any period for which Publisher's Statement is filed shall be reported in the paragraph designated for that purpose and the nature of the premium and the provisions of the offer and the distribution thereof shall be described in Publisher's Statements and Audit Reports.

Premiums are anything except:

(1) Complete issues of newspapers or periodicals sent to all subscribers for the period included in the offer.

(2) 'Door Openers' defined as anything sent free by mail with subscription offer or provided by solicitor at the time of solicitation that has been reprinted from or is printed material directly related to the publication making the subscription offer and the value of which does not exceed 50 cents as determined by procedure outlined in F 8.2(a).

(3) Offers of sample merchandise to subscribers in connection with offers of subscription(s) in which the ordering and receipt of the sample product is not contingent upon ordering subscription(s).

(4) Merchandise offered to current paid subscribers as an inducement to convert payment methodology on future subscriptions. Such offers are to be made separate from subscription renewal efforts and are limited to inducements to subscribers to agree to ongoing (til forbid) continuous service which may include automatic billing process and/or debits to authorize credit card accounts.

(5) Free or discounted access to the publication's website.

(6) Free or discounted access to archive or back content of the publication included as part of the subscription to the publication.

(b) If a back copy, either whole or part, is included in a subscription offer, the back copy shall be considered a premium, unless the subscription is taken on a retroactive basis in accord with the Bureau's back copy rule and the date of the back copy is such that it would have been included in the subscription even though not mentioned specifically in the offer.

(c) Periodicals and newspapers offered in combination sales shall not be reported as premiums but shall be reported in a special paragraph devoted to combination sales prices.

(d) Any publication, the contents of which consist chiefly of data for reference rather than for general reading, shall not be considered a "periodical" for the purpose of the exception noted in Paragraph (a) of this section but shall, when sold with another publication, be considered as a premium.

F 8.2 Premiums with Subscriptions/Single Copy Sales

(a) When a premium is used in connection with a subscription or single copy sales offer or implied to current subscribers in conjunction with continued or future subscriptions, the full value of the premium, whether stated or not, must be collected. The value of the premium is considered to be the actual cost to the publisher, or the recognized retail value, or the represented value, whichever is highest.

In those situations where the cost to the publisher is used to calculate the premium value, set-up costs and shipping and handling fees to the publisher from the manufacturer shall not be considered.

F 8.3 Premiums with Combination Sales

When a premium is used in connection with a combination of magazines the amount paid by the subscriber must not be less than the value of the premium as defined in Rule F 8.2 plus the amount required by Rule F 8.4. When a premium is used in connection with a combination of two or more publications, one of which is a magazine and the other another publication (business publication, farm publication, newspaper), the amount paid by the subscriber must not be less than one cent for the magazine plus at least the qualifying amount as defined by the other publication's division, plus the value of the premium, whether stated or not.

F 8.4 Subscription/Single Copy Sales in Combination

(ABC board of directors will again review section (h) of the below rule at its November 2008 meeting.)

(a) A "forced" combination is defined as two or more publications offered or sold together for an amount less than the total of the publisher's suggested prices of all the publications and wherein all publications intend to qualify the distribution as "paid circulation," except:

When it is clearly made known to the purchaser that each of the publications may be purchased individually at the same price as if purchased as part of the group.

(b) When subscriptions for two or more magazines are ordered or sold in combination by any means the amount paid by the subscriber must not be less than one cent per magazine.

(c) The average copies served in the period as a result of a "forced combination" sale shall be shown in Publisher's Statements and Audit Reports in the paragraph devoted to general explanations. In addition, details of the combination offer, to include titles of other publications involved, Publisher Suggested Prices of all publications included, term of offer and total selling price shall be included in Publisher's Statements and Audit Reports.

(d) The amount of money to be allocated to each title in the combination sale offer for purposes of calculating average per-copy prices shall be based on the offer presentation itself, if it includes reference to the value of each subscription in the combination sale (the sum of which must total to the selling price for the combination sale), or the amount to be charged incrementally or reduced from the existing contract or renewal in an "add on" offer (see (f) and (g) below), or if no such presentation is made, shall be based on the pro rata of each publication's publisher's suggested price to the sales price.

(e) Regardless of its frequency of issue, a publication, the content of which consists chiefly of data for reference rather than for general reading, shall if sold in combination with other publications, be considered a premium in the reports of the publication or publications in the sale of which it is combined.

(f) Existing and renewing magazine subscribers offered a combination sale may qualify as paid under either of the two following conditions:

(1) The offer to "add on" the combination publication requires an affirmative act on the part of the subscriber and incremental payment beyond the rate of the existing contract, or an option to reduce the rate of the existing contract if the offer is declined. The amount of incremental payment or reduction of rate from the existing contract must be clearly disclosed, and must be at least a qualifying amount as defined by the publication paid circulation defined rules.

(2) The offer to "add on" the combination publication requires notification to the subscriber and promotion materials shall not imply nor suggest that the add on publication is "free" or "at no additional cost." The amount being paid for all publications involved in the combination must be at least a qualifying amount as defined by the publication paid circulation defined rules.

(g) Existing magazine subscriptions involved in ongoing ("til forbid") continuous service offered a combination sale may qualify as paid under the following conditions:

(1) The offer to “add-on” the combination magazine must require an affirmative act on the part of the subscriber; offers requiring the subscriber to decline the combined publications if it is not desired will not qualify the sale as paid circulation.

(2) Notification to the subscriber must be made at least 30 days prior to the debits to authorize credit card accounts to include identification of magazine added, term of subscription, amount charged, and notification of terms continuous service contract and manner in which subscription may be cancelled if not desired.

(3) The amount being paid for all magazines involved in the combination must be at least a qualifying amount as defined by the publication paid circulation defined rules.

(4) Promotion materials shall not imply nor suggest that the add-on magazine is “free” or “at no additional cost.”

(5) The “add-on” of another publication is to commence no sooner than the start of the next continuous service contract period.

(h) When two consumer magazines are sold in a "forced combination" in single copy, such single copies will qualify as paid circulation provided:

(1) ABC must be notified of any forced combination in single copy in advance of the on-sale date through completion of a pre-evaluation request found at www.accessabc.com.

(2) Issues sold in a forced combination must be the current issue on sale separately within the newsstand marketplace.

(3) The magazines included in the forced combination must have similar editorial content.

(4) The amount paid by the purchaser for the forced combination must be a minimum of 100 percent of the basic single-copy price of the highest priced magazine and 25 percent of the basic single-copy price for the other magazine.

(5) No more than 50 percent of the total draw of the magazine with the smaller single-copy draw may be offered in a forced combination for that issue.

(6) The average copies served in the period as a result of a single-copy forced combination shall be reported in Publisher's Statements and Audit Reports. In addition, details of the combination, to include the identify of the combination magazines, the issue(s) sold, quantity sold and price of the combination shall be reported in the paragraph devoted to general explanations of Publisher's Statements and Audit Reports.

F 8.5 Subscriptions Paid for by Contestant

Subscriptions received in a contest and paid for by the contestant and not by the recipient shall not be recognized as conforming to any of the rules defining a paid subscriber but shall be included in the unpaid distribution and explained in the paragraph of Publisher's Statements and Audit Reports devoted to general explanations.

F 8.6 Subscriptions as Prizes

Subscriptions given as prizes through contests shall not be included in paid circulation. This includes subscriptions offered as premiums at county and state fairs.

F 8.7 Subscriptions Involving Charitable Donations

Circulation obtained through cooperation between a publisher and an organized charity, or other organization where the publisher makes a donation in return for and in proportion to the circulation so obtained, shall be described and included in the paragraphs of Publisher's Statements and Audit Reports devoted to such sales.

F 8.8 School Subscriptions

The classification "School Subscriptions" in Bureau reports may be shown at the option of the publisher and if shown shall include only copies (either subscriptions or single issue sales) ordered for delivery to schools. Copies may be purchased individually by the recipients or paid for by schools or out of classroom funds.

In cases where qualified copies are paid for by sponsors, it may be acceptable for payment to be made directly to the publisher from the sponsor if other supporting documentation confirming usage (e.g., affidavits from schools, verification of delivery and receipt, etc.) is available for auditor review.

This circulation shall be shown separately as "Subscriptions-School" or "Single Copy Sales-School" and shall qualify as paid circulation provided copies served conform to Bureau rules defining paid circulation in all other respects.

A complete explanation including the manner in which the copies are paid for shall be shown in the paragraph devoted to general explanations in Publisher's Statements and Audit Reports.

Distribution of copies outside of structured classroom settings may also qualify as paid circulation, and reported as NIE - Home Delivered in Bureau reports provided the following conditions are met:

(a) The copies are served in conjunction with a formal program designed to encourage literacy and continuing education of the participating student by assisting the student's family to improve their life and job skills.

(b) The program in question establishes minimum participation standards for the student's family, and the student's family achieves those minimum standards.

(c) Auditable records demonstrating the student's enrollment in school, the program in question, completion of minimum participation standards, and sufficient funding to support copies distributed are maintained.

(d) Only one copy per participating student's family household may be claimed as paid.

(e) Schools and classrooms offering home delivered copies must also participate in NIE programs requiring classroom usage of the newspaper.

(f) Home delivered copies shall qualify as paid circulation provided copies served conform to all Bureau rules defining paid circulation in all other respects.

(g) This classification of circulation shall not exceed five percent of average paid circulation.

F 8.9 Subscriptions Purchased with Award Points

(a) Subscriptions acquired through the redemption of accrued award credits or loyalty points (e.g., frequent flyer miles, credit card member points) may qualify as paid circulation if the publisher presents satisfactory evidence that the cash value of the redeemed product or service is equivalent to one cent or more.

These “loyalty programs” require that the participant record a specific volume of transactions to earn sufficient award credit for award points.

(b)Requirements
Sufficient documentation must exist to demonstrate that the program meets the following qualifications:

(1) Program

(a) The enrollment process must include a clear link to the “host” organization – the organization attempting to build brand loyalty and increase sales.

(b) The participant must take an affirmative action when enrolling in the program.

(c) The program must include discretionary goods and services, in addition to the magazine.

(d) If points are awarded for enrollment, participants may not initially receive more than 35 percent of the points needed to obtain the least expensive product or service offered in the program.

(e) If an expiration date for points is established, the date must allow for sufficient accumulation of points necessary to redeem the highest valued item prior to expiration.

(f) Each program must have an assigned point value based upon the number of points required to redeem the lowest valued commercially available product (product value divided by assigned points equals per-point value).

(g) Points must be earned as a result of incremental activity or the value of each transaction. Merely being in the program for a length of time ("tenure") does not count as activity.

(h) Points cannot be used to purchase "dollars-off" coupons.

(2) Participant (consumer)

(a) The participant must perform a specific financial action to earn award points.

(b) The participant must perform a specific action to redeem goods or services.

(c) The participant must know the specific activity required to earn points including the volume of points that can be earned with each activity.

(d) The participant must be able to accrue points for future redemption opportunities.

(e) Participant must have access to their account status on a regular basis.

(f) There must be proof that proper payment was received from the participant for the redeemed items.

(3) Point Values
Per-point valuation must be established as follows:

(a) All items offered for point redemption must have a stated value.

(b) An option must exist for point redemption for a mixture of publication and non-publication items.

At least 20 percent of all items offered must be non-publication items. For non-publication items, at least 50 percent must be commercially available (in the public domain) for consumer purchase.

(c) The value of each commercially available item must be equal to or greater than the average value of all publications included in the offer.

(d) The number of points required for redemption should be an extension of the per-point value calculation (product value divided by assigned points equals per-point value) multiplied by the stated value. This calculation must be consistent for all (publication and non-publication) award items.

(e) The average price calculation formula will be equal to the per-point value multiplied by the number of points required to purchase the subscription.

(c) Reporting

The average number of copies served in the period from subscriptions purchased through the redemption of trading stamps or award points (to include Frequent Flyer Miles) and a full explanation of the program details, value assigned to the points redeemed and the term and price of subscriptions served will be made in the Explanatory Paragraph of Publisher's Statements and Audit Reports.

For the average price calculation formula, the sale shall be equal to the per-point value multiplied by the number of points required to purchase the subscription.

F 8.10 Subscriptions Received in Connection with an Advertising Contract

Subscriptions received in connection with an advertising contract shall be included in Group (Mail Subscriptions Special) under the following conditions:

If at least one cent for the subscription term is charged over and above the regular advertising rate for the space covered by the contract and the advertising contract states specifically that if a subscription to the publication is not desired, the amount of the subscription price can be deducted from the amount of the contract and if such subscriptions are mailed individually to branch offices or employees.

When such subscriptions are sent to the purchaser in bulk, they shall be included in "Sponsored 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 branch offices of such purchasers, in which case the classification, Group (Mail Subscriptions Special), shall be allowed.

These subscriptions shall be fully explained in the paragraph of the Publisher's Statements and Audit Reports devoted to general explanations.

Subscriptions included in an advertising contract where no additional charge is made for such subscriptions over the regular price of the advertising space contracted for shall not be included in paid circulation, but shall be included in total average non-analyzed non-paid circulation.

F 8.11 Two Subscriptions in One Sale

(a) When only two subscriptions to the same publication are offered or sold in one sale, the amount paid by the purchaser must not be less than two cents for the subscription terms offered.

(b) In order to qualify as paid circulation a contractual agreement must exist for the term of both subscriptions and be in accord with the provisions of Paragraph (a) above.

F 8.12 Subscription Offer Identifying a Surcharge

When a solicitation to potential or renewal subscribers identifies price components (surcharges such as postage and handling), the sale will qualify for inclusion in paid circulation if the total to be collected is in accord with F 1.1 and provided the amount is such that at least one cent remains as an allocation for the subscription. For purposes of calculating average price, total price paid for the subscription, including surcharges, shall be included in the base formula.

F 8.13 Channels of Subscription Sales

Subscription production shall be classified by channels in Bureau reports designed for magazines in accordance with the following definitions and instructions.

(a) Ordered by mail and/or direct request:

Subscriptions produced by a publisher, individually or in behalf of other publishers; department stores; or other media may be classified as "Ordered by mail and/or direct request" if the subscription order is received through the mail as the result of a voluntary effort by the subscriber or telephone orders initiated by the subscriber or renewal telemarketing efforts initiated by the publisher.

Direct mail, renewal mail, insert cards, television and direct mail agents are included in "Ordered by mail and/or direct request."

Subscriptions sent in by mail as the result of solicitation or obtained as a result of a telephone solicitation by a field salesperson shall be classified as "Ordered through salespeople."

(b) Ordered through salespeople:

(1) Catalog agencies and individual agents:
A catalog agency is a concern which publishes in substantial volume a wholesale price list and/or a retail price list, commonly known as a "catalog." Catalog agencies generally accept subscriptions for many and often for all publications. The retail price catalogs are mailed direct to prospective subscribers by catalog agencies. The wholesale catalogs are distributed to subagents such as individual agents, department stores, bookstores, newsdealers, postmasters or others dealing directly with prospective subscribers. Subagents employ various forms of solicitation such as direct mail, telephone, newspaper and periodical advertising and door-to-door canvass. Retail catalogs are usually furnished subagents by catalog agencies for mailing. The subagents or agencies send the subscriptions which they originate to the wholesale catalog agency which in turn clears them to respective publishers. The term "individual agents" is intended to apply to subscription salespeople who are not attached to the staff of a field selling organization such as referred to in (b)(2) below. It also applies to agencies which do not publish a wholesale trade price list and/or a retail price list. Such agents are either part or full time workers who are compensated by either cash commission or merchandise reward. They include individuals and concerns variously described as "pin-money salespeople," "personal effort solicitors," individual salespeople, newsdealers, bookstores, postmasters, etc.

(2) Publisher's own and independent agencies' salespeople:

(a) "Publisher's own salespeople" include: Full-time field selling employees; appointed independent field selling contractors who report directly to the publisher, and a field selling subscription agency jointly owned by two or more publishers.

(b) Subscriptions through "independent agencies' salespeople" include those produced by outside field selling organizations which are totally unaffiliated with the publisher except as subscription producers.

(3) Members of schools, churches, fraternal and similar organizations:
Subscriptions in which sponsorship is involved shall be included in the subdivision "members of schools, churches, fraternal and similar organizations" unless specifically provided for elsewhere.

This provision shall apply even though the production of the sponsoring organization is cleared through a catalog agency or any other channel whatsoever.

(c) Association members:
Subscriptions received as the result of membership in an association shall be included in the subdivision "association members."

(d) When other subscription selling sources are used, a separate line item will be shown as Paragraph (d) All other channels, which will be fully explained in the appropriate paragraph.

(e) The Bureau shall prepare a list of subscription selling organizations as defined by this rule and distribute same to publisher members with appropriate instructions as a guide in properly classifying their production.

F 8.14 Credit Subscriptions

(a) A subscription which is sold on a promise-to-pay basis shall be regarded as a "credit subscription" and such subscriptions will qualify as paid circulation provided:

(1) The term of the obligation to pay is not for more than three months.

(2) The subscriber pays the sum billed.

(3) That the amount charged is sufficient to meet the requirements of the Bureau's rules in all other respects.

(b) If in any case the publisher is obliged to cancel the subscription because of non-payment, the number of copies served thereon shall be established and deducted from paid circulation and included in unpaid distribution.

(c) To qualify as paid circulation, credit subscriptions must be paid as follows:

(1) If sold within North America and the West Indies, payment must be made within seven months after start of service.

(2) If sold outside North America and the West Indies, payment must be made within nine months after start of service.

Copies served on subscriptions which are not paid in accordance with (c) (1) or (c) (2) above and have not been previously cancelled shall automatically be ineligible for inclusion in paid circulation and shall be included in unpaid distribution.

F 8.15 Installment Subscriptions

On a subscription payable in installments, or payable on delivery, only those copies shall be shown in paid circulation that are actually paid for until at least 50 percent of the original order price has been paid, when the subscription automatically qualifies as paid for the full term of the order.

F 8.16 Subscriptions Paid for by Advertising

Any subscription obtained by one publisher from another and paid for in service by the insertion of an advertisement, may be included as paid circulation, provided proof of the insertion of the advertisement or other documentary evidence is available to establish the validity of such subscription, but in such cases the auditor shall explain in the paragraph of the Audit Report devoted to general explanations that this procedure has been followed by the publisher.