Policy relating to Carrier Delivery — Office Collect Subscriptions and Pay-in-Office Subscriptions on Independent Carrier Routes reported in Newspaper Publisher's Statements and Audit Reports

1. Bureau policy permits a total allowance of 4% (of the total pay-in-office subscription base) for the aggregate of new credit subscriptions cancelled for non-payment and for subscribers served short term arrears who paid at least 25% of the basic price for the term of the offer for Carrier Delivery office collect system and Pay-in-Office subscribers. Service of arrears copies beyond 90 days from date of expire do not qualify for inclusion in this allowance and cannot be included in paid circulation.

Newspapers served under these circumstances may be counted as paid circulation subject to the following provisions:

(a) The subscribers are billed directly by the newspaper and the newspaper assumes all liability for collections.

(b) The 4% provision applies only to new credit subscribers and short term arrears copies served for a maximum of three months.

(c) The subscribers involved represent bonafide orders that have contracted either verbally or in writing to have the newspaper delivered and have agreed to payment as defined in Bureau Rule C 1.1 Paid Circulation Defined.

(d) An explanation of the total copies served as a result of the 4% allowance is to be made in the paragraph devoted to general explanations in Publisher's Statements and Audit Reports.

(e) The newspaper maintains adequate records to prove the start date and stop date, if cancelled and paid status traceable to cash receipts for each individual subscriber. Cancellation reports and reports showing short term arrears service should be maintained listing the subscriber's name, address, start date, cancellation date and total copies served designating frequency of service.

(f) It is assumed that all Bureau rules defining paid circulation apply when reference is made to "paid" circulation.

2. Copies served as a result of the 4% allowance are to be reported in the explanatory paragraph, e.g.

(a) "Included in Carrier Delivery office collect system and Office Prepays is an average of X copies per issue Morning, X copies per issue Sunday in the City Zone; X copies per issue Morning, X copies per issue Sunday in the Retail Trading Zone; and X copies per issue Sunday in All Other, representing copies served to subscribers that ordered delivery directly with and were billed by the newspaper and for which payment was not received and/or short term arrears copies served to subscribers whose term has expired." Copies served beyond 90 days and those served in excess of 4% allowance are not included in paid circulation.

3. The allowance for credit subscriptions cancelled for non-payment and short-term arrears service as provided for by this policy does not apply to carrier collect systems unless the Bureau's auditor is able to determine the paid and arrears status of individual subscribers or, when in the opinion of the managing director, audit conditions warrant such an allowance.