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Newspapers: A Review of Eligible Purchasers in Third-Party Transactions: Who Are They?
The general purpose of a third-party sponsorship is to build brand loyalty and increase sales volume of discretionary goods and services. ABC’s industry-developed third-party sales rules are guided by the principle that third-party sales should promote the business or professional interests of the purchaser.
Here, ABC’s Publisher Relations staff further elaborates on the definition of an eligible purchaser to help members understand audit expectations.
Please note: This article focuses only on the definition of an eligible purchaser. To fully qualify third-party sales as paid, several criteria must be met and submitted to ABC for review.
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According to ABC Rule C 3.3 Third-Party Sales –
(a) Eligible third-party purchasers must market their products or services directly to consumers. Organizations, such as advertising agencies, marketing companies or similar firms are not eligible third-party purchasers.
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Q: Who can be an eligible (third-party) purchaser?
A:
- A business organization independent of the publisher, whose primary function is to sell products and/or services directly to individual consumers.
- An individual or entity that does not have a financial interest in the newspaper.
- An individual or entity that does not sell or distribute the newspapers as an employee or independent contractor/distributor.
Eligible purchasers include, but are not limited to, the following:
- Realtors
- Restaurants
- Retail stores/online stores
- Airlines
- Auto dealerships
- Hotels/motels/bed & breakfasts/resort lodging
- Universities/schools
- Nursing homes/hospitals/doctor’s offices
- Sports teams
- Theaters
- Libraries
- Boys and/or girls clubs/YMCA/learning centers
Ineligible purchasers include, but are not limited to, the following:
- Advertising agencies
- Chambers of commerce/tourism bureaus
- Informational-only Web sites
- Sister publications, parent companies
- Other publications (newspapers and magazines)
- Distributors of the newspaper
- Independent contractors of the newspaper
- Subscription solicitors, outside sales forces
- Carriers, motor route drivers
- Newspaper employees, distributors, carriers
- Churches
If the third-party sales program is funded by vacation donations, please note that vacation donations from employees and independent contractors are not eligible to fund a third-party sales program.
For more information on third-party sales qualifications, please visit ABC’s Newspaper Guidelines in the Bylaws and Rules section on the ABC Web site.
Related Links
Newspaper Guidelines and Policies
Third-Party Sales Eligible Purchaser Guidelines and Rules
Third-Party Sales Guidelines
Rule C 3.3 Third-Party Sales
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