IPA And Trinity Mirror To Settle Dispute Over False Circulations

Trinity Mirror is hoping to resolve advertisers’ cases for compensation following the discovery of false reporting of circulation figures at its Birmingham Post & Mail (BPM) division in November last year (see ABC Suspends Birmingham Titles). Three titles in the BPM group were found to have issued inflated circulation figures, through the Audit Bureau of Circulations (ABC), for a period of six years.

This led advertisers in the titles to call for retrospective compensation, for which Trinity Mirror put aside £20 million. The group then proposed the creation of an independent arbitration panel which would assess the levels of compensation payable to each advertisers.

The Institute of Practitioners in Advertising (IPA) described this panel as a smokescreen. Marc Mendoza, a member of the IPA Media Policy Group responsible for press sales practices, said at the time: “[Trinity Mirror’s] insistence on an arbitration panel to sort out what is a very simple matter is beginning to undermine the initial confidence with which the industry greeted the deceleration of the erroneous circulation figures.”

However, it is now understood that Trinity Mirror and the IPA are about to agree a set of terms that can be offered to advertisers and their agencies. If agreed, the IPA will take the proposals to agencies on Trinity Mirror’s behalf. A spokesperson for the IPA said that discussions were looking positive and an announcement could be expected with 24 hours. An agreement would allow Trinity Mirror to settle the dispute out of court.

As a result of the false audit figures, the ABC has set up a working panel to review the stringency of its audit and inspection practices (see Members Of ABC Working Party Announced).

Institute of Practitioners in Advertising: 020 7235 7020 Trinity Mirror: 020 7293 3000