ing them on the envelopes, wrappers, or covers in which the publication is mailed.

(3) Novelty pages. Novelty pages are printed sheets that may be used for purposes other than reading, or printed sheets with novel characteristics. Novelty pages must be prepared specifically for and intended as integral pages of newspapers or other periodical publications. Blank sheets may not be carried as pages. Envelopes and all other types of containers do not constitute printed sheets or portions thereof. The total number of novelty pages in the copies may constitute only a minor portion of the total pages. An excessive use of novelty pages may give a publication the characteristics, both as to format and purpose, of books, catalogs, or other third- or fourth-class mail. The following kinds of pages are examples of novelty pages that may be included in second-class publications:

(i) Printed words, pages bearing perforations, or symbols indicating they are for detachment.

(ii) Pages having printed pictures for cutting out.

(iii) Printed pages having blank spaces for writing or marking.

(iv) Pages having printed illustrations permanently pasted to them. Envelopes, wrappers, pockets, all other types of containers, and any contents thereof do not constitute printed illustrations.

(v) Pages with coupons or application of order forms occupying not more than one-half of the page.

(h) Advertisements. All advertisements in periodicals must be permanently attached. Pagination is not required in periodicals, but some or all pages of periodicals may be paginated or allowed for, or both, in any manner which indicates that pages containing advertisements are an integral part of the periodical, or of its separate editions, rather than an independent publication. Independent publications may not be inserted in periodicals as advertisements. The physical makeup of advertisements may include such features as the following:

(1) Different advertisements may occupy the same space in different copies of the same issue.

(2) Pages of advertisements may not be smaller than one-eighth of the size of the regular pages when they include coupons or application or order forms occupying one-half or less of the page as

permitted by paragraph (g) (3)(v) of this section.

(3) Advertisements larger than the regular pages may be prepared for folding out horizontally, vertically, or both. (4) Advertisements may be die-cut or deckle-edged.

(5) Multiple page advertisements may be prepared for detachment as permitted by paragraph (g) (3) (i) of this section and may be held together by staples or other means separate from and in addition to the regular binding of the periodical.

(6) Advertisements may be printed upon sheets of paper, cellophane, foil, and other similar material.

(7) Advertisements may include statements that they are printed on the product or by means of the product of the advertiser.

[26 F.R. 11543, Dec. 6, 1961, as amended at 27 F.R. 9057, Sept. 12, 1962, 28 F.R. 1469, Feb. 15, 1963, 29 F.R. 563, Jan. 23, 1964, 30 F.R. 7391, June 4, 1965, 30 F.R. 8224, June 26, 1965, 30 F.R. 8588, July 7, 1965; 31 F.R. 11101, Aug. 20, 1966; 33 F.R. 12281, Aug. 31, 1968; 33 F.R. 12619, Sept. 6, 1968. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 132.5 Second-class mailing privilege for news agents.

(a) Definition. News agents are persons or concerns engaged in selling two or more second-class publications published by more than one publisher.

(b) Information required from news agents. News agents must furnish postmasters evidence that copies of publications offered for mailing are entitled to second-class postage rates, and that they are sent to actual subscribers or to other news agents for the purpose of sale. A second-class imprint in the copies in sufficient evidence that a publication is entitled to be mailed at second-class rates. The addresses on bulk packages must show that the packages are sent to other news agents.

(c) Remailing without payment of postage. A news agent may not remove packages of copies from a post office, write an address on each copy, and return them to the office for dispatch or delivery without paying additional postage.

(d) When subject to transient second class rates. Unsold copies returned to publishers or other news agents, or copies sent to other news agents except for purpose of sale, or to persons not having subscriptions with the news transient agent, are subject to the second-class rate.

(e) Return of portions of unsold publications. The head or small portions of publications returned to publishers to show that copies have not been sold are subject to postage at third- or fourthclass rates according to weight.

[26 F.R. 11545, Dec. 6, 1961, as amended at 28 F.R. 1469, Feb. 15, 1963. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 132.6 Ownership, management and

circulation statement.

(a) Requirements (as contained in 39 U.S. Code 4369). (1) Each owner of a publication having second-class mail privileges under 39 U.S. Code, 4354 (see § 132.2(b)) shall furnish to the Postmaster General at least once a year, and shall publish in such publication once a year, information in such form and detail and at such time as he may require respecting:

(i) The identity of the editor, managing editor, publishers, and owners;

(ii) The identity of the corporation and stockholders thereof, if the publication is owned by a corporation;

(iii) The identity of known bondholders, mortgagees, and other security holders;

(iv) The extent and nature of the circulation of the publication, including, but not limited to, the number of copies distributed, the methods of distribution, and the extent to which such circulation is paid in whole or in part; and

(v) Such other information as he may deem necessary to determine whether the publication meets the standards for second-class mail privileges.

The Postmaster General shall not require the names of persons owning less than 1 per centum of the total amount of stocks, bonds, mortgages, or other securities.

(2) Each publication having secondclass mail privileges under 39 U.S. Code 4355(b) (See § 132.2(c)) shall furnish to the Postmaster General information in such form and detail, and at such times, as he requires to determine whether the publication continues to qualify thereunder. In addition, the Postmaster General may require each publication which has second-class mail privileges under 39 U.S. Code 4355(a) or 4356 (see § 132.1(c)) to furnish information, in such form and detail and at such times as he may require, to determine whether the publication continues to qualify thereunder.

91

(3) The Postmaster General shall make appropriate rules and regulations to carry out the purpose of this section, including provision for suspension or revocation of second-class mail privileges for failure to furnish the required information.

(b) Procedures. (1) All publishers of publications having second-class mailing privileges, including the publishers of foreign publications accepted at the second-class postage rates under the provisions of § 132.2(d) must file on or before the first day of October a statement on Form 3526. Statement of Ownership, Management, and Circulation, in duplicate, at the post office where the original second-class permit is authorized.

(2) Publishers who file a statement under the provisions of paragraph (a) (1) of this section shall publish the complete statement in the second issue thereafter of the publication to which it relates. Publishers who file a statement under the provisions of paragraph (a)(2) of this section are not required to publish the statement. Publishers of foreign publications accepted at the second-class postage rates under the provisions of § 132.2(d) are not required to publish the statement.

EXCEPTION: Publications described in paragraph (a) (1) (iv) of this section are not required to publish circulation data. Publishers who file a statement under the provisions of paragraph (a) (2) of this section are not required to publish the statement. Publishers of foreign publications accepted at the second-class postage rates under the provisions of § 132.2(d) are not required to publish the statement.

(3) A publication which fails to comply with the requirements of this section within 10 days after notice by certified mail of the failure may not be mailed at the second-class rates of postage until it has come into compliance.

(4) Postmasters shall:

(i) Furnish at least three copies of Form 3526 for each publication not less than 10 days prior to October 1. One copy of the completed Form 3526 should be retained by the publisher for his records.

(ii) Examine each statement filed in duplicate to see that it contains all of the information required by law.

(iii) Return incomplete or incorrect statements to the publishers and obtain from them complete and correct statements.

(iv) Arrange the original copies alphabetically by titles and forward them

Postmasters shall:

POD Form 3526, Aug. 1963

§ 132.7 Marking of paid reading matter.

(a) Editorial or other reading matter contained in publications entered as second-class mail and for the publication of which a valuable consideration is paid, accepted, or promised shall be marked plainly "advertisement" by the publisher. (39 U.S.C. 4367)

(b) Whoever, being an editor or publisher, prints in a publication entered as second-class mail editorial or other reading matter for which he has been paid or promised a valuable consideration, without plainly marking the same advertisement, shall be fined not more than $500. (18 U.S.C. 1734)

(c) Each paid editorial or reading article which occupies all or any part of one page must be marked plainly "advertisement." Each paid editorial or reading article which occupies more than one page must be marked plainly “advertisement" on each page or part of a page which it occupies.

[29 F.R. 563, Jan. 23, 1964, as amended at 33 F.R. 5416, Apr. 5, 1968. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 132.8

Cancellation of second-class priv

ileges. (a) The Postmaster General may revoke the entry of a publication as second-class mail whenever he finds, after a hearing, that the publication is no longer entitled to be entered as second-class mail. (39 U.S.C. 4352b).

(b) The Director, Classification and Special Services Division, Bureau of Operations, makes determinations concerning the suspension or revocation of a second-class entry subject to appeal and hearing requested by the publisher. He may call on a publisher from time to time to submit information bearing on the publisher's right to retain a second-class entry for his publication. When the Director determines that a publication is no longer en

titled to its second-class entry, he issues a ruling of suspension or revocation to the publisher at the last known address of the office of publication stating the reasons therefor. The ruling becomes effective in 15 days from receipt by the publisher unless the publisher appeals therefrom. See paragraph (c) of this section.

(c) A copy of the procedures governing administrative appeals and hearings relative to the denial, suspension, or annulment of second-class mail privileges may be obtained from the Director, Classification and Special Services Division, Bureau of Operations. Part 204 of this chapter for the Rules of Practice in Proceedings Relative to the Denial, Suspension or Annulment of Second-Class Mail Privileges.)

(See

§ 133.2 Permits

(a) Qualifications. Publications must:

(1) Contain at least 24 pages.

(2) Contain at least 25 percent nonadvertising.

(3) Be issued at regular intervals of four or more times a year.

(4) Be circulated free or mainly free. (5) Not be owned and controlled by individuals or business concerns and conducted as an auxiliary to and essentially for the advancement of the main business or calling of those who own or control them.

(b) Applications. Apply by letter to the postmaster at the office where mailings are to be made. A form is not provided for this kind of application. State the name of the publication, frequency of issue, where published, the name of the publisher, and whether the publication is circulated free or mainly free. Submit two copies of the issue published nearest to the date of application. The postmaster will submit the application and one copy of the publication to the Classification and Special Services Division, Bureau of Operations. Notice of authorization or disapproval will be furnished by the Director, Classification and Special Services Division.

(c) Deposits to cover postage. While an application is pending, deposits in money to cover postage on mailings at the third- or fourth-class rates may be made by the publisher. The excess deposits will be returned if a permit is issued.

[26 F.R. 11545, Dec. 6, 1961, as amended at 29 F.R. 563, Jan. 23, 1964. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

read: "Controlled circulation postage paid at ____ and at

(g) Notice of pending application when copies are mailed under deposits of money, reading: "Application to mail at controlled circulation rates is pending at A notice must be printed or handstamped on the envelopes or wrappers in which copies are mailed, reading: "Controlled circulation postage paid at When a publisher has filed applications at more than one post office, and has received authorizations at each office, the notice must read: "Controlled circulation postage paid at and at

[26 FR. 11545, Dec. 6, 1961. Redesignated at 31 F.R. 15350, Dec. 8, 1966] § 133.4 Filing of marked copy.

A copy of each issue marked by the publisher to show nonadvertising to the extent of at least 25 percent of the total reading and advertising portions of the publication must be filed with the postmaster at the time of mailing. The percentage of nonadvertising must be written on the first page of the copy. Advertising includes paid advertising and the publisher's own advertising. The advertising may be in display, classified, or editorial style.

[27 F.R. 6976, July 24, 1962. Redesignated at 31 F.R. 15350, Dec. 8, 1966] § 133.5 Enclosures.

Enclosures are not permitted.

[26 F.R. 11546, Dec. 6, 1961. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

§ 133.6 Addressing, preparation for mailing and collection of postage. Controlled circulation publications are accepted for mailing in the manner prescribed for second-class publications (See § 126.8 of this chapter). See § 123.7 of this chapter for addressing requirements.

[30 F.R. 7392, June 4, 1965. Redesignated at 31 F.R. 15350, Dec. 8, 1966]

134.4 Preparation-payment of postage.

Permissible additions.

Enclosures.
Sealing.

AUTHORITY: The provisions of this Part 134 issued under R.S. 161, as amended; 5 U.S.C. 301, 39 U.S.C. 501, 2503, 2510, 4451-4453, 4652, unless otherwise noted.