6-3.3 Step 3: Examine Mailpiece for Advertisements

6-3.3.1 Process

Examine the mailpiece (including any product) to determine whether it contains any printed or other matter that can be considered advertising for a product or service. Consider the following two conditions and proceed as follows:

1. If the mailpiece contains no advertising, the content-based restrictions for advertisements do not apply and the mailpiece may be eligible for mailing at the nonprofit prices.
2. If the mailpiece contains advertising for a product or service, apply the appropriate test to determine whether the mailpiece qualifies for the nonprofit prices. (A conclusion that a mailpiece contains advertising does not disqualify it from being mailed at the nonprofit prices.) Go to step 4.

6-3.3.2 Definition of Advertising

As used in this publication, the terms advertising and advertisement mean anything that “advertises, promotes, offers, or, for a fee or consideration, recommends, describes, or announces the availability of any product or service,” as defined in 39 U.S.C. 3626(j).

6-3.3.3 Advertising Matter

Under the law, the advertising restrictions have an extremely broad reach. The content-based restrictions for advertisements apply to written and other material that promotes any product or service. These restrictions include the authorized organization’s advertising of its own products and services as well as third-party advertising (for example, advertising for products or services of other persons, companies, or organizations).

Postal standards provide the following guidance on what is considered to be advertising:

1. All material for the publication of which a valuable consideration is paid, accepted, or promised that calls attention to something to get people to buy it, sell it, seek it, or support it.
2. Reading matter or other material for the publication of which an advertising price is charged.
3. Articles, items, and notices in the form of reading matter inserted by custom or understanding that textual matter is to be inserted for the advertiser or the advertiser’s products in the publication in which a display advertisement appears.
4. A newspapers or periodicals advertisement of its own services, issues, or any other business of the publisher, whether in display advertising or reading matter.

Examples: Listing Considered As Advertising

• If an authorized educational organization advertises a seminar and states that the fee may be paid using the organization’s affinity card, the announcement is considered an advertisement for the seminar and for the affinity card. Because the statement announces the availability and discusses potential uses of the organization’s affinity card to get people to use it, the announcement must be considered an advertisement.
• For fundraising, authorized organization Y sends members a mailpiece that includes the following message: “We are selling delicious ABC Candy for only $5 per box for members only. Please call Jane Jones at 111-1111 with your order.” Because the message contains promotional material describing the candy as “delicious ... only $5,” the message is considered an advertisement.
• Authorized organization X distributes information stating that it will host an educational seminar at a hotel (and includes the hotel’s name, address, and room prices for those who may participate in the seminar). The information is considered advertising for the seminar because it is an attempt to get support for the seminar. The information is not considered an advertisement for the hotel unless the authorized organization receives consideration for publishing the information.
• Authorized organization X will host a meeting at a hotel and includes in the organization’s mailpiece a brochure received from the hotel and for which the qualified organization is compensated by the hotel to distribute at the nonprofit prices. The brochure is considered an advertisement for the hotel because the hotel paid to have the information distributed. n addition to the content-based restrictions for advertisements, the arrangement between the hotel and the authorized organization must be considered to determine whether the cooperative mailing rule applies (see chapter 5).

Examples: Nonadvertising

• Authorized organization O mails a letter soliciting donations. The letter does not contain advertisements for products or services. Because requests for donations are not considered advertisements, the content-based restrictions for advertisements do not apply.
• Authorized consumer organization XYZ mails a newsletter containing an article that discusses the merits and prices of insurance policies offered by companies O, P, Q, and R and lists telephone numbers at the companies for obtaining more information. Companies O, P, Q, and R do not pay organization XYZ or provide any other consideration for the newsletter article. Because companies O, P, Q, and R did not pay organization XYZ to publish the article, the article is not considered an advertisement.
• Authorized organization A’s mailpiece contains a solicitation for donations, with prize entry information and a notice that a product or service need not be purchased to enter the drawing for the prize. Because the recipient can enter the drawing without buying a product or service, the solicitation is not considered an advertisement for the prize.
• Authorized organization E’s mailpiece contains a solicitation for donations, sweepstakes entry information, and an announcement that the first 500 persons to return their sweepstakes entry form will receive a set of steak knives. The recipient may enter the sweepstakes regardless of whether he or she sends a donation. Because nothing is sold, the request for a donation is not considered an advertisement. Also, because the recipient is not required to make a donation to enter the sweepstakes, the announcement of the sweepstakes and the knife set is not considered an advertisement.
• If an authorized organization solicits donations and announces that a donation may be paid by credit card, the mention of payment by that credit card is not considered an advertisement for the credit card unless a third party (e.g., the firm issuing the credit card) gives the authorized organization valuable consideration to mention the card. No consideration has been paid for mentioning the credit card as a payment option. Therefore, the reference is not advertising.

6-3.3.4 Premiums

6-3.3.4.1 Front-End Premiums

A solicitation for a contribution or payment of membership dues announcing a front-end premium is not considered to be an advertisement for the premium. Example: Nonprofit organization A sends a solicitation to individuals seeking donations. The solicitation includes a set of address labels and states, “The enclosed labels are provided for you. Please use them regardless whether you send a donation to our organization.” This solicitation is not considered to be an advertisement for the labels.

6-3.3.4.2 Back-End Premiums

A solicitation for a contribution or payment of membership dues that includes an offer for a back end premium (e.g., “If you donate $100, we will send you a free tote bag”), may be considered an advertisement for the premium unless the membership dues or requested contribution is more than four times the cost of the premiums offered and more than two times the represented value in the mailpiece, if any, of the premiums offered.

6-3.3.5 Determining What Product or Service Is Advertised

As explained further in the discussion of steps 4-6, there are different eligibility standards for advertisements based upon the specific product or service advertised. It is important to consider the advertisement to determine the product or service that is promoted.

If an advertisement generally promotes an advertiser’s business, the advertisement is considered to promote the company’s full line of products and services. In contrast, if the advertisement does not promote all the advertisers products or services but only specific products or services, the advertisement is considered to promote only those specific products and services.

Examples: Specific Advertised Products and Services

• Clothing store P sells a wide range of clothes for men and boys. It places an advertisement in a mailpiece mailed by the local Buddhist temple that states, “Clothing store P has a large stock of saffron robes starting at $50.” This is considered to be solely an advertisement for saffron robes, rather than for the store’s full line of clothing.

Note: If the advertisement also promotes clothing store P’s general business with a statement such as “Serving all your clothing needs since 1960,” it is considered to be an advertisement for P’s full line of clothing.

• Supermarket S places an advertisement in a mailpiece of an authorized Jewish synagogue that states only, “A full line of Passover foods is sold in the store.” This is considered to be an advertisement for the Passover foods sold at the store, rather than an advertisement for all items sold at the store.
• A nonprofit organization’s newsletter includes an advertisement for the Acme insurance company that states only, “Call one of our certified financial planners to discuss your future.” This is considered to be an advertisement for financial planning. If the advertisement consisted solely of the name and telephone number of the Acme Insurance Company, it would be considered an advertisement for all insurance and other services available from the company.
• A scientific organization’s mailpiece includes an advertisement for the ACME Travel Agency. The advertisement states, “Call us for inexpensive flights to Europe.” This is considered to be an advertisement for air transportation only, rather than one for all of ACME Travel Agency’s services.

6-3.3.6 An Organization’s Advertising of Its Publication

An authorized organization may advertise its periodical publication if it meets certain statutory requirements (see 6-3.2), regardless of the products or services advertised in the periodical publication. The publication itself may be mailed at the nonprofit prices if it complies with the product restrictions, if it is eligible for mailing as USPS Marketing Mail matter, and if it complies with the rules for prohibited and restricted advertisements (if the publication contains advertising).

6-3.3.7 Nonadvertising Matter

Under the law, the following materials are not considered advertising:

1. References to membership benefits of an authorized nonprofit organization (see 6-3.3.8).
2. Acknowledgments of organizations or individuals who make donations to the authorized organization (see 6-3.3.9).
3. Public service announcements for which no consideration is received (see 6-3.3.10).

6-3.3.8 References to Membership Benefits

References to and a response card or other instructions for making inquiries about services or benefits available to members of the authorized organization is permitted, provided that advertising, promotional, or application material for such services or benefits is not included. (This standard is sometimes referred to as the “permissible reference” rule.)

For the purposes of this provision, descriptions of membership benefits available as a part of membership are permissible when they are included in a letter soliciting new members or in a letter asking current members to renew their membership as long as the descriptions constitute less than half of the letter. The benefits described can include any product or service that constitutes a membership benefit and the description may include contents that might be considered advertising in other contexts, such as adjectives, brand names, terms, conditions, and other material describing the product or service.

Caution: With one limited exception, the membership benefits may be described only in the solicitation letter or renewal request, and not in any separate brochure, circular, flyer, or other document. Exception: when the mailer prepares a single sheet describing the organization’s membership benefits, the sheet may be included in the mailpiece along with the letter soliciting new members or membership renewals and considered to be part of that letter as long as the letter does not describe the membership benefits and only refers the reader to the separate sheet. (See CSRs PS-299 and PS–304.)

6-3.3.9 Acknowledgments of Donors and Sponsors

A listing of sponsors, donors, or contributors is permissible and is a type of acknowledgment. Such a listing is not considered advertising if it meets all of the following conditions:

1. The listing of each individual or organization appears on a page under a heading such as “sponsors,” “contributors,” “donors.”
2. The listing does not contain promotional material.
3. The listing is not labeled as advertising nor are the individuals and firms described as advertisers in other parts of the mailpiece.

A listing containing only the names of sponsors is not considered promotional, but the inclusion of the address, telephone number, other contact information, or additional information might be considered promotional, depending on its content. For example, if the listing includes such a line as “Acme Ice Cream Parlor, Our City’s Favorite Ice Cream Parlor,” the listing is considered an advertisement because the phrase “Our City’s Favorite Ice Cream Parlor” is promotional. The phrase “Acme Ice Cream Parlor” is permissible if that is the name of the sponsor.

6-3.3.10 Public Service Announcements

Public service announcements (PSAs) are commonly found in Nonprofit USPS Marketing Mail material, especially periodical publications. These announcements are not treated as advertising. PSAs are announcements for which no valuable consideration is received by the publisher; which do not include any matter related to the business interests of the publisher; and which promote programs, activities, or services of federal, state, or local governments or of nonprofit organizations, or matter generally regarded as in the public interest.

Examples: Public Service Announcements

• An authorized educational organization publishes the following message in its mailpiece: “There will be a political forum in auditorium G for all citizens of county X. Come hear the candidates’ points of view on topics that affect you.” Because no valuable consideration was paid, the message is a public service announcement, not an advertisement.
• Authorized organization B’s mailpiece contains the following statement: “Be prepared for the unexpected. Authorized organization D sells an automobile survival kit for $15.” If organization B received no consideration for publishing the statement, the statement is considered a public service announcement, not an advertisement.