Publisher is allowed to offer gifts to readers on non subscription copies upto 50% of the cover price of a publication so that copies qualify for certification as Qualifying Sales (Part A).

Accordingly, it is clarified that publishers offering gifts to readers value of which is more than 50% of the cover price on non subscription copies under any scheme for a defined period then such a scheme is void abinitio and does not qualify for certification. Accordingly, all copies offered to readers under such a scheme do not qualify for certification as Qualifying Sales irrespective of whether readers have availed the benefit offered under the scheme or not.

All incentive schemes to readers to be framed in such a manner such that the name of the beneficiary / reader is identifiable. An audit trail in the form of a reader booking form with the name, address and other contact details of the reader should be made available for auditor’s verification along with a record of gifts purchased and distributed.

Publishers should ensure that the reader incentive schemes are not taken advantage of by the trade in order to increase their earnings which would result in reduction of the net price at which the trade purchases a copy from the publisher.

The value of a gift (branded or customised) is to be valued at MRP or cost to the publisher. In case of customised gift, cost to the publisher plus 15% of such cost is to be reckoned as value of the gift.

In case of barter arrangements, relating to gifts issued to subscribers or on newsstand sales, publishers should pass necessary accounting entries in their books of accounts.

In case a gift / sample etc. is provided along with a particular issue of a publication value of which is more than 50% of the cover price of a publication then in such cases only excess circulation achieved for the relevant issue will not be considered for certification as Qualifying Sales.

The provision referred to above for reducing ‘excess circulation’ does not apply to cases where value of gifts offered to readers is more than 50% of the cover price under a scheme for a defined period. In such circumstances, such a scheme as mentioned above will be treated void abinitio and all copies under such a scheme will be shown as NON Qualifying Sales (Part ‘B’).

In order to determine excess circulation achieved for a particular issue when a free sample, gift etc. was carried alongwith a publication, following procedure needs to be followed :

1. In case of dailies, average Qualifying Sales of the previous week to be taken as normal circulation provided there were no promotional activities*, in any form, during the given period.
2. In case of Sunday issue of a daily, weeklies and magazines, average Qualifying Sales of previous four issues where there were no promotional activities*, in any form, would be reckoned as normal circulation.
   
   [*Promotional activity includes free distribution of gifts/samples, calendars etc. to readers and shall also include any other schemes to induce a reader to purchase a publication]

1. The value of gift / inducement / incentive to a reader should not exceed 50% of the cover price of the publication on which an inducement is offered.
2. In case another publication is offered as a gift, in such cases, on the print line below the mast-head of the main publication, it should be mentioned that “XYZ” publication offered free with “DEF” publication.
3. Similarly, on the print line of the publication offered free, it should be specified that this publication is offered free alongwith XXX publication.
4. Print Order of the publication offered free should specifically show the number of copies offered free with a particular publication.
5. In case a Publication, which is offered as a gift / inducement / incentive is not a member of the Bureau then the member publication shall arrange for verification of the distribution and financial books and records of a nonmember publication. The member publication will then arrange to obtain a written confirmation from the non-member publication that it’s financial & distribution books & records are open for scrutiny by Bureau’s Auditors / officials.
6. Copies of the Publication offered free as an inducement or at less than the prescribed cover price would not be considered for certification under Part A of the ABC Certificate of circulation.
7. The NRR will be ascertained after considering the combined pagination of the main publication together with the publication given free as a gift.
8. The net price to the trade would be calculated at the cover price of the main publication less trade commission and / or delivery charges on the main as well as the free publication.

1. The word “gift” would specifically exclude all cash gifts or cash equivalents (gift cheques etc) to subscribers / regular readers from the purview of gifts to subscribers / regular readers. Gifts offered to subscribers / regular readers only in kind will be considered for the purpose.
2. All copies involved in a scheme offering its readers cash gifts / cash equivalent / cash discounts etc. will be shown as “Non Qualifying Sales” under ‘Part B’ of the ABC Certificate of circulation.

Publisher Members would be allowed to distribute to their regular readers, a Calendar / Almanac once in a year alongwith their publication with or without increasing the cover price of the publication on the relevant day. All copies of the relevant issue sold would qualify for certification under Part A.