DMA Accuses UPS of Holding Up Postal Reform

Share this content:
The Direct Marketing Association criticized United Parcel Service yesterday, saying UPS was trying to thwart postal reform.

"UPS appears not to have the best interest of its customers at heart," said H. Robert Wientzen, president/CEO of the DMA. "It seems clear that they seek to ensure the further decline of the postal service."

It has been widely reported, the DMA said last week, that UPS is using its lobbying muscle to deny a floor vote to a House of Representatives postal reform draft bill.

Though the DMA has offered mixed reviews of the draft, Wientzen said changes in the system are needed for the U.S. Postal Service to compete. He also said that a healthy postal service would actually help UPS.

"If Congress established a more viable postal service by re-examining the postal service's antiquated laws, UPS would stand to benefit because it delivers 80 percent of goods sold at a distance," Wientzen said. "After all, the more cost-effective it is for companies to find customers by direct mail, the more sales volume UPS will see in its package-delivery business. We wish UPS would consider this point of view."

UPS spokesman David Bolger agreed that "a strong postal service is very important to the economy. When people get catalogs, they buy things and ship them through UPS."

But at the same time, he said, since February, "we have been working and talking to a lot of different folks on Capitol Hill. We have been telling them that if the draft legislation includes the ability to have [negotiated service agreements], we don't like that. If the legislation calls for the postal service to have less transparency, that's a concern of ours too."

Meanwhile, Reps. Dan Burton, R-IN, and John McHugh, R-NY, are trying to raise their colleagues' awareness of the challenges facing the USPS through a "Dear Colleague" letter. The letter explains that for the third time in 18 months, the postal service is raising its prices, and that the increase "should remind us that under current law, there is no limit on postal rates."

The reform draft aims to update postal laws that would help the USPS adapt to the changing communications marketplace. Key components would prohibit postal rates from rising beyond inflation without regulatory approval and allow the postal service more control over instituting measures to improve service.

Loading links....

Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here