Extreme Couponing Goes Too Far

By: Merle Davidson

Coupons have made a comeback. Reality TV shows have recently portrayed consumers hoarding newspaper coupon inserts. Those “couponers” use stacks of coupons to buy thousands of dollars in groceries for a fraction of their value. The trend has spread,and consumers are going to great lengths to retrieve coupon inserts — even climbing into dumpsters. But their extreme savings tactics may be costing those who supply the coupons.  

As chairman of the Audit Bureau of Circulations’ board and an advertiser whose flyers are often packaged with coupon inserts, I believe the security of these inserts is crucial.   

While couponing television shows vividly portray how valuable coupons are for consumers, the value to newspapers, advertisers, and manufacturers may not be as obvious. Marketers distribute hundreds of billions of coupons each year through newspapers and poly-bag wraps. When the redemption value of those coupons is considered, it is clear that this is a significant business to advertisers, distributors, and newspapers.  

The couponing business works because of a collaborative relationship among advertisers, manufacturers, newspapers, and consumers. Advertisers team with manufacturers to get their products into the coupon inserts. Coupon manufacturers work with newspapers to distribute the coupons. Consumers buy those newspapers, clip the coupons, and purchase the advertisers’ products. There’s a balance that works and has worked for decades.  

As the delivery vehicle for coupons, newspapers play an important role in securing the inserts to keep this balance. ABC’s Coupon Distribution Verification Service, or CDVS, can add an extra element of protection to coupon security.    

A task force of publishers, advertisers, and coupon manufacturers developed CDVS to enhance coupon handling and control. This program established guidelines that newspapers have followed for more than 30 years. Because of this program, newspapers have invested in storage-area security measures, plant security systems, shredders, and personnel to check that the newspaper is complying with CDVS standards.  

The program is structured on a set of industry-established guidelines for coupon security, including receipt, storage, and disposal. Publishers file statements about the handling and disposal of newspapers containing coupons. ABC auditors visit the facility to test the claims through physical inspections and internal record examinations.  

Auditors check a range of criteria to verify the coupons are handled in accordance with established guidelines. When the newspaper receives the coupons, for example, they must be checked to ensure the number received matches the number shipped. Auditors also confirm that the inserts are stored in a secure area and protected from theft or damage.   Returns are also part of the audit process. Newspapers are responsible for ensuring the unsold copies are disposed of to render advertiser coupons unusable. Those who handle the unsold copies — retailers, wastepaper companies, and firms that purchase unsold copies — must sign affidavits to attest that they destroyed the copies. Newspapers are responsible for securing the affidavits, spot-checking returned newspapers, and documenting their efforts. Auditors also spot-check copies returned to the newspaper’s facility. If the copies are not returned to the newspaper, auditors ensure that the publishers secure signed affidavits from those who handled the unsold copies.  

CDVS is another layer of protection that helps validate a newspaper’s approach to coupon security. By joining CDVS, a newspaper of any size — whether metro or community — shows its commitment to transparency and accountability. And as an independent third-party auditor, ABC works to uphold and support the standards.  

Just one package of inserts in a Sunday paper can save a consumer a significant amount of money. If we stick to reasonable couponing — following guidelines and obtaining inserts only from the copies purchased — we can all ensure that the coupons will keep coming.  

Merle Davidson is board chairman for the Audit Bureau of Circulations and director of media services for J.C. Penney Co. For a full list of industry-established guidelines, visit AccessABC.com/services/cdvs.htm.