Newspaper to compensate advertisers for inflating sales

A US publisher is to pay €18.6m to compensate advertisers for overstating circulation figures at its flagship newspaper, The Dallas Morning News.

The Belo Corporation disclosed earlier this month that the Morning News had overstated newspaper sales by 5% on Sundays and 1.5% on other days. Advertisers overpaid because rates are usually based on circulation.

Robert W Decherd, Belo chairman, president and chief executive, said the compensation was fair and “should be regarded as an investment in the company’s future”.

Belo is the third major media company to report a problem with overstating circulation numbers.

Tribune said in June that circulation at New York’s Newsday and its Spanish-language paper Hoy were overstated. Hollinger International Inc said its Chicago Sun-Times overstated circulation.