Sponsored Sales Recipient Notification Guidelines

Effective, Jan. 1, 2007, ABC sponsored sales rules require that recipients of sponsored copies be informed of the identity of the purchaser.

The guidelines that follow detail compliance factors for distribution of sponsored copies for individual addressed programs.

New and Renewal Programs: Please note that these recipient notification guidelines apply to new sponsored sales programs and existing programs upon renewal, beginning Jan. 1, 2007, or later. Any programs in place prior to January may run their course without adhering to the modified rule.

Transition Period: Recognizing that timing and production issues may impact a publication's ability to immediately comply with this new rule, ABC auditors will allow for a transition period. During the first half of 2007, reasonable action should be taken to provide recipient notification from time to time. ABC will require 100 percent compliance for all sponsored issues no later than July 1, 2007.

Individually Addressed Distribution to Consumers for Personal Use

A sponsor may opt to purchase magazines for distribution to targeted consumers for the purpose of increasing its business relationship with the consumer. These copies are typically delivered to the consumer’s home for their personal use.

It is necessary that the consumer be notified about the sponsor of these copies. Such notification should occur at the beginning of service of the sponsored publication. For periods longer than one year, a reminder notice should be sent to the consumer on an annual basis.

This notification can be made in one of the following ways:

• At the time of delivery of the first issue of the publication via a sticker, stamp, flyer, wrap or similar vehicle notifying the consumer of who has purchased the magazine on their behalf.
• Separate notification sent to the consumer advising them of the identity of the sponsor. Such a message must be communicated in a clear and conspicuous fashion.
• In situations where the consumer is offered a selection of publications or the opportunity to opt-in to receive of a sponsored copy, notification of the identity of the sponsor may be executed at this point.

The content of this notification must state something similar to the following:

• This magazine is compliments of (sponsor’s name)
• This magazine is courtesy of (sponsor’s name)
• This magazine is being provided to you by (sponsor’s name)

The notification may also contain the following information without being considered advertising by ABC and requiring that the sponsor pay normal market rates:

• Sponsor’s logo
• Street address
• Web site URL
• E-mail address
• Phone number
• Fax number

If additional information regarding the sponsor or its business were contained on the notification, ABC would consider this advertising. If the magazine or another third party supplies such information, the sponsor must pay fair market value for the advertising. This charge to the sponsor must be over and above the cost of the magazines purchased.

The following are examples of additional items the magazine sponsor may wish to include on the notification that would require a charge for advertising:

• Normal sponsor advertising
• Coupon for its merchandise/services
• Editorial content about the sponsor

Additional Information

A sample of the written notification piece must be maintained for the ABC auditor’s review during the audit process. For additional information about sponsored sales programs, visit these links:

• Samples of acceptable purchaser notifications (PDF*)
• Definition of a qualified sponsor
• Guidelines for sponsored sales “net of all considerations”
• Sponsored sales program pre-evaluation form (Microsoft^® Word^® document)
• Rule F 2.1 – Sponsored Sales

Updated 11/28/07