By: Jennifer Saba It's less than one week before the Audit Bureau of Circulations is set to release its latest FAS-FAX figures and already archrival papers the New York Post and the Daily News are coming to blows.
The Post alleged in a story Tuesday that the News is caught up in a circulation scandal similar to one at nearby Newsday on Long Island. The News fired back late Tuesday afternoon, releasing a document attempting to refute the Post's story nearly point by point.
The Post had suggested that the News boosted circ numbers by "charging retailers for papers that are given away, then reimbursing those retailers; failing to take nonpaying home subscribers off distribution lists and keep them off; and charging home delivery dealers for papers they don't need, then later reimbursing them for them."
But Les Goodstein, President and COO of the News, responded in a statement: "We take very seriously the rules imposed on our industry by the ABC. Our advertisers rely on our honesty and credibility, and I believe it is a testament to the way we do business that we have their trust. Not surprisingly, today's story in the Post leaves out many important facts that their readers have a right to know."
The Post reported, for one thing, that the News delivers thousands of copies to New York-area supermarkets, which then give the papers away for free with a small purchase. Several retailers are cited saying they are reimbursed practically for the entire bill by the News. In other words, the retailers barely had to pay a wholesale price for the papers.
In one instance the Post says that one store manager?s typical weekly bill runs $600 and that the News pays him a rebate check of about $525.
The News said that what the Post doesn't reveal is that it's a common practice in the industry to offer compensation for premium placement called Retail Display Allowance: "Supermarkets participating in the RDA program are offered wholesale rates at levels above ABC-stated guidelines. The program is paid; the supermarket pays for the newspapers, the News pays for prime shelf space at the checkout counter," the statement said.
The Post also reported that the News was taking part in sketchy home delivery methods by quoting five "current and former dealers," who are suing the News in a contract dispute. They are claiming that that "they are routinely billed for papers they never ordered and don't need, and are later reimbursed," the Post story said. Also, the dealers say that they were forced to keep delivering papers even if a customer made a cancellation.
The News shot back: "The only on-the-record statements in the Post story came from interviews conducted with five home-delivery dealers and agents (of the 170 currently working with the News) who are currently engaged in litigation with the paper. In total, this group handles just 5,000 copies of the paper each day, less than 1% of the total circulation." The News also points out that this particular group of dealers are litigation happy, suing the News in 1999 (a judge ruled in favor of the News), again in 2000 charging the News didn't give them enough papers, and in 2003 where the case is still pending.
Martha Dittmar, a spokeswoman for ABC, told E&P that she was "not aware of the News being under any type of investigation."
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