February 06, 2002
ABC to apply reduced trade commission for calculating Net Paid Sales

3 important resolutions were passed in the 22nd January Meeting of the Council of Management, The Audit Bureau of Circulation (ABC).

1. ABC has revised the maximum trade term/commission to the distribution trade for daily newspapers to 35% instead of currently applicable 40% whilst arriving at Net Paid Sales. This may force major newspapers like The Times of India, The Hindustan Times & Dainik Bhaskar to rethink their distribution strategy.

2. The Bureau also has stipulated that the minimum subscription rate for newspapers as well as magazines to be at least 50% of the cover price of the publication for the relevant period.

3. ABC has made it mandatory for daily newspaper publisher members to furnish a Responsibility Statement stating that the net sale price of their publication for each issue at the maximum trade term offered to the distribution trade was higher than its value in waste. This statement must accompany the Incoming Certificate & would be subject to scrutiny by publishers as well as Bureau’s Auditors.