Source Interlink to Seek Indemnification for Unusual Magazine Promotions
Source Interlink Distribution has informed its trading partners that it will begin requiring vendors to submit a U.S. Consumer Product Safety Improvement Act (CPSI) Supplier Agreement for any unusual premiums packed along with magazines — that is, for premiums other than CD’s, DVD’s or paper products. (A template of the form is available here.)Source explained the new procedure like this:
All products arriving at the distribution centers with premiums other than CD’s, DVD’s and paper products, will be entered as a receiving exception. Scans of the product will be sent from the DC’s for a decision on distribution. The probability of distribution with the premium increases with a CPSIA supplier indemnification agreement on file; however, the retailer may still opt not to take the magazine with the premium, in which case the premium will be removed and the labor cost charged back to the publisher. The publisher obviously may opt not to absorb the cost of removing the premium in which case the product will not be distributed at all.
Additional information about CPSIA can be found at a U.S. government website here.