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May 2006

Newspaper Third-Party Sales: Comply and Qualify

14-Day Pre-Approval of Third-Party Sales Programs At the March 2006 meeting, the board voted to require that newspapers requesting the qualification of their third-party barter programs, must have their individual programs approved by ABC at least 14 days prior to the implementation of the program, effective April 1, 2006. This also allows for audit testing. All third-party sales programs will be subject to the same 14-day pre-approval requirement effective July 24, 2006, pending final passage at the July board meeting.

How Do I Obtain Pre-Approval?
For Third-Party Sales
Complete the ABC Third-Party Sales Notification Form (Microsoft Word Document).

For Barter
If you plan on conducting third-party barter sales, complete the form listed below and submit them to ABC. If payment is in form of barter, then the following forms also need to be completed and submitted to obtain pre-approval:
Attestation from Publisher – for Barter (Microsoft Word Document)
Attestation from Purchaser – for Barter (Microsoft Word Document)

Submit Your Requests
Once you have completed all the required forms, please submit them to your ABC Publisher Relations manager. If you’re not sure who your Publisher Relations manager is, please see ABC’s Web site.

Reporting
Assuming the third-party sales program executed by a newspaper complies with all ABC guidelines, the circulation will be reported as third-party sales on ABC Publisher’s Statements. See how the circulation will be reported in the Publisher’s Statement and understand the limitations on third-party sales reporting:
Reporting
List of Available Reporting Categories (for U.S. Newspapers only)
Limitations

ABC regularly provides newspaper members with expanded explanations and tutorials on rule application. Here are some of the highlights from ABC’s newly expanded third-party sales guidelines section from the ABC Web site, offering members a comprehensive overview of what they are, how to qualify them and their reporting requirements.

According to ABC, third-party sales are defined as copies and/or subscriptions purchased by a qualifying third-party for its professional or business interests, not intended for resale:

  • Purchased in quantities of 11 or more by a single entity to promote its professional or business interests
  • Purchased by the following establishments (regardless of volume)
    • Hotels for guests
    • Restaurants for patrons
    • Airlines for guests
    • Rental cars for guests
    • Hospitals for patients
    • Nursing homes for residents
These copies will be reported under paid circulation as “Third-Party Sales” on ABC reports, provided the purchaser pays a qualifying rate for the newspapers, net of all considerations, and executes the program in compliance with all third-party sale guidelines.

If third-party sales are part of your business strategy, please review these topics and bookmark the new third-party sales guidelines and rules page to review these key areas at any time.

Remember that ABC offers members expanded guidelines and rules in the newspaper board updates and guidelines section of the Web site.

Key Areas for Third-Party Sales Program Qualification

PURCHASER
The following information must be communicated to ABC as it relates to the purchaser of third-party sales to obtain pre-approval:

RECIPIENTS
The following information must be communicated to ABC, as it relates to the recipients of third-party sales to obtain pre-approval: DISTRIBUTION
The following information must be communicated to ABC, as it relates to the distribution of third-party sales to obtain pre-approval: CONTENT
The following information must be communicated to ABC, as it relates to the content of the newspapers distributed for a third-party sale to obtain pre-approval: NOTIFICATION
The following information must be communicated to ABC, as it relates to notifying recipients of the purchaser’s identity to obtain pre-approval: CONSIDERATIONS
The following information must be communicated to ABC, as it relates to other goods and services the newspaper will provide to the purchaser in conjunction with a third-party sale to obtain pre-approval: PRICING
The following information must be communicated to ABC, as it relates to the rate the newspaper will charge the purchaser for the copies or subscriptions for the newspaper to obtain pre-approval: BILLING
The following information must be communicated to ABC, as it relates to the rate the newspaper will charge the purchaser for the copies or subscriptions of the newspaper to obtain pre-approval: PAYMENT
The following information must be communicated to ABC, as it relates to the payment to be received by the newspaper from the third-party sales purchaser to obtain pre-approval:

Specific Questions or Concerns About Your Program?
Your ABC publisher relations manager is able to help you answer questions about third-party sales and other kinds of newspaper programs. As always, requests for a comprehensive review of your various programs is welcomed; please make sure to include as much detailed information as you can and check ABC’s Web site to see if there are specific submission criteria. To contact your ABC publisher relations manager, call ABC headquarters at (847) 605-0909 or visit the manager contact list available on the Web site.


Related Links
Newspaper Bylaws and Rules - Updates and Guidelines
Third-Party Sales Guidelines and Rules
Rule C3.3 Third-Party Sales
Reporting of Third-Party Sales on ABC Publisher’s Statements
Third-Party Sales Reporting Categories
Limitations for Third-Party Sales
Prototype Circulations Reports
Listing of Publisher Relations, Audit and TRRP Contacts

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