Home-Delivery Promotions Guidebook—U.S. Newspapers

Apartment Programs

An apartment program is defined as a situation when a subscription to the newspaper is included with the cost of the monthly apartment rent, but where the tenant may receive a refund of the subscription value if the subscription is declined.

Qualification

For the subscription copies included with the monthly apartment rent, the lease (or lease addendum) for the apartment must:

• State the term (monthly) and frequency of the subscription.
• State the amount of the rent per month allocated to the subscription (subscription value).
• Ask the tenant if they wish to receive the subscription (yes and no response options).
• State that if the subscription is declined, a refund for the subscription value will be provided.
• Exclude any reference to the subscription as being free, no additional cost, bonus, or other synonymous language.

Pricing

The subscription value must be at least 25 percent of basic home-delivery prices, net of all considerations.

Promotional Material

The promotional material is the lease addendum. Therefore, it must comply with the requirements stated above.

Example – Apartment Programs

Reporting

Circulation generated from apartment programs is reflected in Paragraphs 1A, 2, and 6B of the ABC Publisher’s Statement.

In Paragraph 1A, the circulation is classified as Home Delivery—Sales with Other Services under Paid for by Individual Recipients. For individually paid circulation, ABC requires a newspaper to delineate between circulation sold at 50 percent or more of basic prices and circulation sold at less than 50 percent, but at least 25 percent of basic prices. Therefore, the subscription copies should be included in the appropriate price category based on the subscription value (also equates to the refund value).

In Paragraph 2, the circulation is classified as Home Delivery—Sales with Other Services, based on the specific ABC zone where the copies are delivered to the subscriber.

Paragraph 6B will disclose the details for apartment programs. The disclosure will state that subscriptions were sold in conjunction with apartment leases, the renter was given the opportunity to decline the subscription, and if declined the purchase price was refunded. It will also state the average number of copies included in paid circulation that were sold in this manner.

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