By: Jennifer Saba Newsday has started sending out letters offering repayments to advertisers affected by circulation misstatements. ?We?ve had some positive feedback but there are a lot of questions,? Stu Vincent, Newsday spokesman, told E & P. ?We feel these settlements are fair and equitable.?
The offers take into account the most recent circulation reductions announced by Tribune Co. earlier this month. This is the first offer letter, dated September 13, that advertisers have received and it covers the 12-month period ending September 2003 and six-month period ending March 2004.
Vincent said that the letters are tailored to address each advertiser accordingly, though he would not reveal specifics. In an article published earlier today, Newsday reported that seven of 20 advertisers contacted said their offers ?came to between 4% and 8.6% of their total spending with the newspapers.?
?These are the letters that have gone out to thousands of advertisers?national, retail, classified, preprint,? Vincent said. The batch also includes people who have placed one-time classified ads.
In most cases, the letters were mailed, though Newsday hand-delivered some letters to their biggest advertisers, according to Vincent.
If advertisers accept the settlement, they waive their rights to take legal action against the paper for circulation misstatements, including joining any class action suits. (Two class action suits against Newsday are still standing).
Tribune executives said the company was setting aside an additional $60 million for advertiser?s compensation, bringing the total to $95 million.
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