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October 2006

A Review of Eligible Purchasers: Who Are They?

ABC’s industry-developed sponsored sales rules are guided by the principle that sponsored sales should promote the business or professional interests of the purchaser. As sponsored sales and rules evolve to meet the standards set by the ABC board, the definition of an eligible purchaser or sponsor has been elaborated upon by ABC’s Publisher Relations staff to help members understand audit expectations.

Here are some basic guidelines established for sponsored sales (for consumer magazines).

Please note: This article focuses only on the definition of an eligible sponsor/purchaser. To fully qualify sponsored sales as paid, several criteria must be met and submitted to ABC for review.

CONSUMER MAGAZINES

Q: Who can be an eligible purchaser of sponsored sales?

According to ABC Rule F 2.1 Sponsored Sales –
(d) Qualified purchasers of sponsored sales shall be defined as businesses or individuals having a consumer presence. Third-party subscription selling organizations or other vendors to the publication circulation industry shall not be recognized as qualified sponsored purchasers.

A: Any business organization independent of the publisher where the primary activity is to sell or provide services or products to individual consumers.

Eligible purchasers include, but are not limited to, the following:

  • Retailers
  • Pharmaceutical manufacturing companies
  • Charities
  • Consumer information Web sites
  • Local governments
  • Schools
Ineligible purchasers include, but are not limited to, the following:
  • Publishers of magazines, newspapers, etc., or their divisions, subsidiaries or affiliates (i.e., Web sites)
  • Advertising agencies
  • Marketing companies
  • Companies that service delivery of publications to recipient room locations
  • List rental organizations or other similar firms
  • Subscription sales agents or any organization involved in the magazine distribution chain
Organizations that are affiliated with or have a financial relationship with a publisher are not considered an eligible sponsor. This includes, but is not limited to, third-party subscription selling organizations and their subsidiaries and other similar publishing vendors. In addition, other publishers are not eligible purchasers or other publications.

For more information on sponsored sales qualifications, please visit ABC’s Consumer Magazine Guidelines in the Bylaws and Rules section on the ABC Web site.



Related Links
Sponsored Sales Eligible Purchaser Guidelines
Consumer Magazine Guidelines and Policies
Rule F 2.1 Sponsored Sales

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