Rules & Resources
Consumer Magazine Support Center

Promotion Guide

Promotion Offers Involving Online Services/Computer Software

When computer software is poly-bagged with a copy of the magazine, the software is considered a premium for ABC qualification purposes. This practice is widely used with newsstand sales.

Therefore, at least one cent for the magazine plus the full value of the software must be collected from the consumer to qualify as paid circulation. As with any other premium, the “value” of the software is the highest of either the cost to publisher, stated value or retail value.

  • If the CD states a quantifiable time for an online service (i.e., 40 hours of free service), then the premium value is determined by identifying the per hour market price for that service and multiplying it by the number of “free” hours the CD provides.
  • If the length of time for an online service is not promoted or seen by the consumer in any way, then the premium value are the costs the publisher incurred to purchase or manufacture the CD.

A disclosure in the explanatory paragraph of the Publisher’s Statement is required when this type of premium is offered. It must provide a full explanation and description of the premium.

Example of Acceptable Offer

The minimum amount that must be collected in this offer is no less than one cent plus the cost to the publisher for the CD (since no length of service or value is stated).



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