Recording Industry Association of America

In the United States, the Recording Industry Association of America awards certification based on the number of albums and singles sold through retail and other ancillary markets.[1] (Some other countries have similar schemes. See Music recording sales certification.) Certification is not automatic; for an award to be made, the record label must pay a fee to have the sales of the recording audited. The audit is conducted against unit shipments (most often an artists' royalty statement is used), which includes albums sold directly to retailers and one-stops, direct to consumer sales (music clubs & mail order) and other outlets. Shipments that could potentially be returned to the label can not be counted.
Contrary to popular belief, Nielsen SoundScan figures are not used in RIAA certification; the RIAA system predates Nielsen SoundScan and includes sales outlets Nielsen misses. Prior to Nielsen SoundScan, RIAA certification was the only audited and verifiable system for tracking music sales in the U.S.; it is still the only system capable of tracking 100% of sales (albeit as shipments less potential returns, not actual sales like Nielsen SoundScan).