Nonprofit Postal Rate Recommendations Ignored

Monday, March 19, 2007 — The Governors of the US Postal Service (USPS) this afternoon approved most of the Postal Regulatory Commission’s (PRC) postal rate recommendations, which were announced on February 26. Most of the new rates will take effect on May 14, 2007.

The Governors listened to DMA’s members and requested reconsideration of the PRC’s rate recommendations for Standard Mail flats (catalogs). The Governors also ask the PRC to reconsider recommended rates for the Non-Machinable Surcharge for First-Class Mail letters, and the Priority Mail Flat-Rate Box.

On Tuesday, March 20 from 1:00 p.m. to 2:00 p.m. (EDT), DMA will host a virtual seminar on the postal rate news. The one-hour virtual briefing is FREE for DMA members and costs $199 for non-members. [See information below.]

DMA’S COMMENTS ON THE GOVERNORS’ ACTIONS

DMA today thanked the Governors of the US Postal Service for responding to mailers’ concerns and for requesting reconsideration of the postage rate increases recommended by the Postal Regulatory Commission (PRC) for flat-shaped mail.

At the same time, DMA expressed its disappointment that the Board of Governors did not allow additional time for many nonprofit mailers to revise and test new mailing campaigns.

The Governors announced this afternoon their acceptance of most of the recommendations put forth by the PRC on February 26. But after hearing from many within the mailing community, the Governors asked the PRC to reconsider its recommendations for Standard Mail flats. The PRC’s proposed rates were more than double what the USPS had originally requested in May 2006, and would be devastating to many of America’s catalog mailers.

“In regard to Standard flat rates, the Postal Governors made the right decision today,” said DMA President & CEO John A. Greco, Jr. “In the face of overwhelming evidence, they chose not to move forward with a decision that was certain to be detrimental to many postal customers and to the very future of postal operations.”