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Coupon Distribution Verification Service

Coupon fraud is a concern to advertisers. The ABC Coupon Distribution Verification Service (CDVS) confirms that a newspaper is committed to two things: First, eliminating coupon fraud, and second, establishing their newspaper as the most reliable delivery vehicle for a billion dollar industry. The CDVS program is supported by major coupon suppliers, leading coupon redemption centers and coupon manufacturers. Your participation in the CDVS program can make a major impact on this important industry initiative.

About CDVS

Background

This service was established as a result of expressed interest in having ABC play a constructive role in helping to solve part of the coupon misredemption problem. Coupon advertiser members and the board of directors believe that ABC is uniquely qualified to make a significant contribution through implementation of this service. The CDVS enrollment form/participation deposits, Publisher's Statement (PDF*) and prototype Audit Report (PDF*) documents are available for download.

Objectives

The objectives of this service are three-fold:

  1. To identify those practices and procedures used by newspapers in the storage and disposition of copies which contain coupons.


  2. To increase awareness among newspapers and coupon advertisers of the problems of coupon misredemption.


  3. To assist publisher members of ABC in becoming a more attractive medium for coupon advertisers by reducing potential areas of coupon misredemption.

Established Guidelines

Guidelines have been developed for the basic data to be provided by newspapers participating in the Coupon Distribution Verification Service. The industry developed guidelines, which cover the relevant verifiable records and security measures, are outlined below.

Publisher's Statements

An industry task force developed the format for a Publisher's Statement which provides the basis for the ABC verification. The information in that statement, which is filed with ABC, relates to the practices and procedures employed by each newspaper in the handling and disposition of copies containing coupons.

Verification Procedures

The coupon distribution verifications are made in conjunction with the regular annual circulation audit. ABC auditors subject the publisher's claims to verification tests, by making whatever investigations are deemed necessary under the circumstances.

Verification procedures include an examination of the publisher's internal records, as well as the auditor's personal inspection of procedures in handling, storage and disposition of copies containing coupons.

Six reasons why coupon manufacturers should participate in the Coupon Distribution Verification Service.



Industry Established Guidelines

Free Standing Coupon Inserts

  • The newspaper publisher should maintain auditable records or procedures or obtain statements from persons responsible for handling free standing inserts to affirm that the number of free standing coupon inserts received at the newspaper office agrees with the number shipped.
  • Free standing coupon inserts should be stored in a secure area until they are removed by authorized persons.
  • Newspaper personnel should maintain auditable records or procedures to verify that free standing coupon inserts were placed in the newspaper for distribution.
  • Leftover free standing coupon inserts should be disposed of so as to make them unusable for redemption.

Run of Press Coupon Sections

  • The newspaper publisher should maintain press room reports or procedures, or obtain statements pertaining to the number of sections run for each issue, to affirm the total number of coupon sections printed.
  • Leftover run of press coupon sections and those spoiled in printing should be disposed of so as to make them unusable for redemption.
  • Run of press coupon sections printed prior to insertion should be stored in a secure area until they are removed by authorized persons.
  • Printing plates or other materials used to print run of press coupon sections should be disposed of so as to make them unusable.

Publisher's Return Procedures

  • The newspaper should have auditable procedures or obtain statements to affirm the disposition of returns, leftover and unsold copies by the person responsible for recovery and destruction of newspapers containing advertiser coupons.
  • The publisher should have statements from wastepaper companies or any other firms which may purchase leftover, returned or unsold copies of the newspaper containing advertiser coupons, stating that the advertiser coupons are disposed of so as to make them unusable for redemption.
  • The publisher should have auditable procedures which affirm that newspapers returned to the publisher contain the proper amount of free standing coupon inserts and run of press coupon sections.

Newspaper Distribution Procedures

  • The newspaper publisher should have auditable procedures to monitor the number of copies in excess of a regular or normal draw purchased by a distributor, dealer or carrier on days when the newspaper contains free standing coupon inserts and/or run of press coupon sections.
  • Alternatively, the newspaper publisher should provide assertions from the publisher's personnel regarding tests made to determine that increases in draw of copies of newspapers containing advertiser coupons are for delivery to individual customers or bulk purchases. A review of the procedures may be made in lieu of assertions.

For more information, please contact ABC’s manager, marketing and sales, at (224) 366-6412 or manager, marketing and sales, at (224) 366-6356.


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*PDF files require the Adobe® Reader®. To download this free software, visit www.adobe.com.