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.
Publishers could see an extreme rise in their mailing costs in the next five years because of recently proposed changes to the current price structure for Marketing Mail and Periodicals.
