New Rule D 2.8 Subscriptions Sold with Other Publisher Goods/Services (Final Passage - March 2004)

At the March 2004 board meeting, the ABC board of directors granted final passage to Rule D 2.8 Subscriptions Sold with Other Publisher Goods/Services. This new rule allows business publications to qualify subscriptions sold as a non-deductible component of a “package” transaction as paid circulation. A “package” transaction occurs when an individual subscription is sold in conjunction with the sale of other publisher goods/services where the recipient does not have the option of deducting the subscription price from the purchase price.

The following requirements apply:

1. The amount of the purchase price allocated for the subscription must be clearly communicated during the sales transaction and stated on the sales invoice.
2. The amount allocated for the subscription must not be less than one cent.
3. Subscribers may be sold only one subscription in conjunction with a “package” of the publisher’s goods or services per year.
4. Subscriptions may only be sold in conjunction with other goods or services related to the field served.
5. Such subscriptions reported in Paragraph 1a must be footnoted to provide a complete explanation in the paragraph devoted to general explanations in ABC reports. The explanation must identify the range of subscriptions sold with the package of publisher goods/services and a description of package offered by the publisher.
6. Such subscriptions must be reported separately in the paragraph devoted to premium usage as “Sold with Other Publisher Goods/Services."

Posted 4/19/04