Postal Service asks PRC to throw out mailer alliance request

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The US Postal Service asked the Postal Regulatory Commission August 2 to deny the Affordable Mailing Alliance's request that it throw out proposed mailing rate increases.

The Postal Service claims the AMA made “manifestly misleading comparisons” and asserted that it has proven that extraordinary circumstances exist to trigger such an increase. The USPS contends that the AMA ignored the fact that the US Postal Service has constraints and regulatory oversight that private companies do not.

“The [AMA's] motion is wholly deficient in both its interpretation of the ‘extraordinary or exceptional' prong of the exigency standard, and in its interpretation of the requirement that an exigent increase be ‘reasonable and equitable and necessary' to enable the Postal Service, under the best practices of honest, efficient and economical management, to maintain and continue the development of postal services of the kind and quality adapted to the needs of the United States,” the USPS said in its filing with the PRC.

A USPS representative could not be immediately reached for comment.

The AMA, joined by the Direct Marketing Association, called on the PRC July 26 to dismiss the USPS' rate increase rate, which would take effect next January. More than 700 organizations are supporting the AMA.

Catalog mailers will see postage prices increase by 5.1% on average January 2, 2011, if the rate changes are approved. Other direct mailers would see price hikes of about 5%, although companies that mail Standard Mail Parcels (packages weighing less than one pound) would get hit with a 23.3% price increase. The First Class Stamp's price would go up 2 cents to 46 cents.

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