Rules & Resources
Newspaper Support Center

Home-Delivery Promotions Guidebook—Canadian Newspapers

Subscriptions Purchased with Award Points

Subscriptions purchased with award points refers to programs where a consumer may purchase a newspaper subscription by redeeming accrued award credits, in lieu of cash. Commonly known award point programs include frequent flyer programs and credit card programs.

Qualification

The qualification requirements for subscriptions purchased with award points primarily focuses on the structure of the reward point program.

The qualification requirements are as follows (See Rule C 25.9 Subscription Purchased with Award Points)

  • The award programs must:
    • Build brand loyalty of discretionary goods and services and increase the sales of a host organization.
    • Require an enrollment process.
    • Require points be earned as a result of specific incremental actions performed by the consumer. The consumer must be fully informed of the actions necessary to earn points including volume of points for each activity.
    • Make accrued points available for future redemption.
    • Make a consumer’s account status accessible on a regular basis.
  • The consumer must be fully aware of all items that may be obtained for the redemption of points.
    • All items offered must have a stated value in points or dollars.
    • At least 20 percent of all items offered for the redemption of points must be non-publication items. At least half of all the non-publication items must be commercially available.
    • The value of each commercially available item must be equal to or greater than the average value of all publications available.
    • The program may provide an initial award of no more than 35 percent of the points needed to obtain the least expensive product or service in the program.
  • Each point must have a monetary value.
    • The product value divided by the assigned point value equals the per-point value.
    • The point value must be consistent for all award items.
  • If the points have an expiration date, the program must allow time for sufficient accumulation of points to redeem the highest valued item.

Pricing

A qualifying price for a subscription purchased with award points is one cent, net of all considerations. This can be determined by multiplying the per-point value for points in the program by the number of points required for the acquisition of the newspaper subscription.

Promotional Material

All promotional material for the award program must reflect the requirements listed above.

The promotional material to encourage consumers to redeem their points for subscriptions must:

  • State the term and frequency of the subscription.
  • State the number of points required to obtain the subscription.
  • Reflect a qualifying price (based on per-point value times the number of points required to obtain the subscription).

Reporting

Circulation generated from subscriptions purchased with award points is classified as Home Delivery on the ABC Publisher’s Statement.

Canadian Publisher's Statements delineate between circulation sold at 50 percent or more of basic prices and circulation sold at less than 50 percent of basic prices.

The price classification for subscriptions purchased with award points is based on the subscription price offered to the consumer—the per point value multiplied by the number of points required to acquire the subscriptions.

  • If the price offered for the subscription is 50 percent or more of basic prices, the circulation is included in Paragraph 1A.
  • If the price offered for the subscription is less than 50 percent of basic prices, the circulation is included in Paragraph 1B, with further disclosure in Paragraph 1G.

In Paragraph 2, the circulation is classified in the proper reporting zone based on where the copies are delivered to the subscriber.

Paragraph 8 provides a description of the program including the name of the award program, the term and frequency of the subscriptions, the number of points necessary to obtain the subscriptions, and the total value of points redeemed for the subscription (subscription value).


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