Partnership Sales -- Deductible

Subscriptions bundled with other products or services at the point of sale wherein the consumer is advised of the amount allocated to the subscription, and that amount is deductible from the package price, are classified as “Partnership Sales - Deductible.”

The following guideline material (as of June 12, 2006) provides ABC qualification instruction for notification of magazine inclusion in the purchase and opportunity for refund. This document is not intended to be all-inclusive but to review commonly seen programs. For pre-approval or additional information, contact your publisher relations representative.

Telemarketing Sales

• The text of the telemarketing script (inbound and outbound) must include specific reference to the inclusion of the magazine subscription and its associated value in the package price for the product or service.
  
  
• The notification must be clear and conspicuous and should not state or infer that the magazine subscription is free, or at no additional charge.
  
  
• The text of the telemarketing script (inbound and outbound) must remind the consumer that the magazine may be declined and provide information on how this refund offer will be made available.

• Prior to the point of purchase, notification must be provided as to the inclusion of the magazine subscription and its associated value in the package price for the product or service.
  
  
• The notification must be clear and conspicuous and should not state or infer that the magazine subscription is free, or at no additional charge.
  
  
• At the point of purchase, the consumer must be notified that the magazine may be declined and provide information on how this refund offer will be made available.
  
  
• If the retail transaction collects the subscriber's address for automatic start of the subscription, a separate notice must be sent to the consumer to remind him of the opportunity for a refund if the magazine is declined and it must provide instructions for obtaining the refund.
  
  
• If the retail transaction does not collect the subscriber's address, the retail product or service must be accompanied by a notice of the amount allocated for the subscription, instructions to be executed by the consumer to start the subscription, and the process to be followed if the consumer desires a refund.

• The initial Web page wherein the product or service is first advertised for purchase must include specific reference to the inclusion of the magazine subscription and its associated value in the package price for the product or service.
  
  
• This notification must be clear and conspicuous and should not state or infer that the magazine subscription is free, or at no additional charge.
  
  
• The Web page where the consumer selects the product or service for purchase must state the inclusion of the magazine and its associated value. This notification must be clear and conspicuous.
  
  
• Either at point of selection of the product or service for purchase or at “shopping cart,” the consumer must be notified, in clear and conspicuous terms, of the opportunity for a refund if the magazine is declined and must provide instructions for obtaining the refund.

• The upfront direct mail materials must include specific reference to the inclusion of the magazine and associated value in the package price for the product or service.
  
  
• The notification must be clear and conspicuous and should not state or infer that the magazine subscription is free, or at no additional charge.
  
  
• The text of the direct mail or catalog materials must remind the consumer that the magazine may be declined and provide information on how this refund offer will be made available.
  
  
• If the direct mail purchase collects the subscriber’s address for automatic start of the subscription, a separate notice must be sent to the consumer to remind him of the opportunity for a refund and must provide instructions for obtaining the refund.
  
  
• If the direct mail purchase does not initiate an automatic start to the subscription, the product or service must be accompanied by instructions to be executed by the consumer on how to start the subscription, and the process to be followed if the consumer desires a refund.

• Required notifications of magazine inclusion, value assigned, and opportunity for rebate if a magazine is declined are required to be presented to the consumer in a clear and conspicuous manner.
  
  
• Evaluation of “clear and conspicuous” will consider such things as notification juxtaposition, notice point size relative to other items in the materials, color of notice, and access and ease of understanding. For information regarding ‘clear and conspicuous’ definition, consult the Federal Trade Commission Web site.
  
  
• In those instances where the product or service is delivered to the consumer and point-of-sale refund was not available, the product or service should be accompanied by a notice informing the consumer of the amount allocated for the subscription and the fact that the amount is deductible. If it is impracticable for the notice to accompany delivery, separate notification must be mailed to the consumer within 10 working days of order fulfillment. In either case, the notice must be presented in a clear and conspicuous fashion.
  
  
• In those instances where the product or service is to be “picked up” by the consumer, notice must be presented at the “pickup” location as to the amount allocated for the subscription and the fact that the amount is deductible. The notice must be presented in a clear and conspicuous fashion.
  
  
• If the “deductibility” criteria is to be met via refund, the process must be simple and consist of only one step for the consumer.
  • If the process is handled through the use of an “800” telephone number, the consumer must be informed in the notice of the specific information that will be needed in the telephone call to complete the transaction.
    
    
  • If the process is to be handled by requiring the consumer to mail in for the refund, the consumer must be provided with specific instructions as to what documentation must be submitted for the refund request.
    
    
  • If the process is to be handled through a Web site the consumer must be presented on the URL clear instructions to complete the refund request.
  
  
  
• If the partnership sale offers consumers the opportunity to select from a list of magazines, one such selection must be “no magazine(s) requested” and information for obtaining a refund must be presented at this point in a clear and conspicuous manner.
  
  
• If the partnership sale presents to the consumer the opportunity to opt-in to the magazine or decline service by opting for a magazine to not be received, the presentation of this choice must not be pre-populated by the partnership provider. Instead, the consumer must be required to take affirmative action in their selection.
  
  
• Any partnership sale involving continuous service (automatic renewal and automatic credit card debit) will require separate notification in a clear and conspicuous manner as to how the consumer can opt-out of the agreement.
  
  
• If the partner places an expire on when a refund must be requested by customer if the magazine is declined, the expire must be no less than 30 days following receipt of notice to the customer.

Examples of Acceptable Deductible Partnership Notifications and Refund Processes

Telemarketing Sales

• Telemarketing Script (inbound/outbound)
• Telemarketing Follow-up Refund Notice (included with product)
• Telemarketing Sales, follow-up form mailed separate from delivery of product

• Point of Purchase Notification
• Follow-up notice when retailer collects name and automatically starts subscription
• Form available at retail when subscriber data is not automatically collected at time of retail purchase

• Initial Web page where product advertisement is made
• Consumer "Shopping Cart" online
• Online Purchase Refund Notice

• Upfront notification materials of magazine inclusion
• Follow-up sent to consumer with product when subscription is not automatically started at point of purchase

(This example also illustrates the process when a choice of magazines are offered.)