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Third-Party Sales Guidelines - U.S. Newspapers

DEFINITION

A ‘third-party sale’ is defined as copies and/or subscriptions intended for free distribution to individuals, not intended for resale:

  • Purchased in quantities of 11 or more by a single entity to promote its professional or business interests

  • Purchased by the following establishments (regardless of volume)
    • Hotels for guests
    • Restaurants for patrons
    • Airlines for guests
    • Rental cars for guests
    • Hospitals for patients
    • Nursing homes for residents
These copies will be reported under paid circulation as “Third-Party Sales” on ABC reports provided the purchaser pays a qualifying rate for the newspapers, net of all considerations (See C 1.1 Paid Circulation Defined), and executes the program in compliance with all of the third-party sale guidelines.

For more details, see:
Pricing
Considerations
Reporting

Quantities of 10 or Less

Copies or subscriptions purchased in quantities of 10 or less, by a single purchaser and not intended for resale, must comply with all third-party sales qualification guidelines (free distribution to the end consumer).

However, the circulation should be claimed on ABC reports as:

  • Single-Copy Sales:
    • The sale must comply with ABC rule C 5.3 Combination Sales section (b)(4). This rule states that when two or more copies of the same paper are sold together, it is required to collect a minimum of 100 percent of the basic price for the first newspaper and 25 percent of the basic price for each additional newspaper.
  • Third-Party Sales:
    • The copies fall into one of the six exceptions noted above (hotels, airlines, etc.)
    • The copies/subscriptions were paid for at only 25 percent of basic prices each (did not comply with ABC Rule C5.3 Combination Sales section (b)(4))

Copies Intended for Resale

Copies intended for resale cannot be claimed as third-party sales at any time.

Copies purchased with the intent of resale to consumers are considered single-copy sales for reporting as well as qualification. Therefore, the transaction must comply with all rules and guidelines applicable to single-copy sales. This includes, but is not limited to, the following:

  • Payment by the final consumer must represent a qualifying price
  • Quantification of all unsold copies (returns)
  • Exclusion of these unsold copies from paid circulation




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