The United States Postal Service (USPS) filed proposed postage increases that are, in some cases, seven times the rate of inflation. This increase will have detrimental effects on small businesses, including small-market and rural newspapers that cannot afford the increased costs, particularly as they strive to recover from the economic impact of COVID-19.
Congress is working to improve the financial condition of the Postal Service, which mailers hope will ease pressure on USPS and reduce the need to squeeze revenues from monopoly mailers.
Postmaster General Louis DeJoy’s new ten-year strategic plan for the Postal Service, “Delivering for America,” will impact all users of the postal system, with clear and potentially serious implications for newspaper publishers that rely on the postal system for newspaper delivery.
The News Media Alliance and the National Newspaper Association have joined a legal challenge of an order by the Postal Regulatory Commission that would effectively eliminate a Congressionally-mandated limit on postal rate increases for Periodicals and Marketing Mail.
On November 30, the Postal Regulatory Commission approved a rule, establishing a new rate-setting system that eliminates the previously implemented cap on postage rates which could harm newspapers and ultimately weaken the nation’s postal system.
On October 9, the United States Postal Service announced rate changes for Marketing Mail and for Periodicals mail.
The Alliance and 11 other business associations sent a letter to the United States Postal Service (USPS) encouraging the agency to put forward measures in the coming weeks that will provide business mailers with incentives to stay in our nation’s postal system during the COVID-19 crisis. Associations representing newspapers, magazines, direct mailers, non-profit mailers and others reminded USPS management that its operations are fully funded by postage rates paid by individuals and businesses.
Currently, USPS can raise or lower rates for products such as Periodicals and Marketing Mail (e.g. TMC products) on an annual basis, with smaller, predictable rate increases that do not exceed the inflation-based price cap. But this pricing structure that brought newspapers predictable pricing could be in jeopardy if a new rate-setting system is approved.
The U.S. Postal Service (USPS) on October 9 filed notice for new postal rates for market-dominant products, which includes Marketing Mail and Periodicals. If approved by the Postal Regulatory Commission (PRC) in the coming weeks, the new rates will take effect on January 26, 2020.
The News Media Alliance applauds the FTC for pursuing the case against Adept Management and protecting newspaper subscribers across the country.
