October 25, 2014
Associations appeal exigent postal rate increase

Argue decision is 'faulty and self-contradictory'

01/30/2014
Association TRENDS

Several associations have joined together to file an appeal at the U.S. Court of Appeals in Washington, against the recent Postal Regulatory Commission decision to allow an exigent postal increase.
 
The organizations argue that the grounds upon which the PRC granted last month the exigent increase requested by the U.S. Postal Service are faulty and self-contradictory. The commission acknowledged that the USPS failed to distinguish properly losses caused by internet diversion from losses that were a result of the 2007-2009 recession.

In December, the PRC approved the U.S, Postal Service request for an exigent postage increase of 4.3 percent. The 4.3 percent exigent rate is scheduled to be implemented simultaneously with an inflation-based rate adjustment of 1.7 percent approved earlier by the PRC. Thus, mailers are facing a total price increase averaging 6 percent.
 
Rather than filing separate appeals, associations and other mailer entities joined together in the one. Among the associations are Direct Marketing Association, Alliance of Nonprofit Mailers, American Catalog Mailers Association and MPA-Association of Magazine Media.

In a separate case, DMA, ANM, ACMA and MPA also filed jointly a motion to intervene in a “petition for review” in the case USPS v. Postal Regulatory Commission. In this case, the USPS challenges the PRC’s decision to impose restrictions on an inflation-recovery rate increase sought by the Postal Service.


Association TRENDS