The Postal Regulatory Commission has “initiated a case to address allegations of undue discrimination and other issues raised by GameFly, Inc. (GameFly) in a formal complaint related to sending and receiving DVDs. Accepting the case will provide an opportunity for review of pertinent issues.”
DATES: 1. Joint prehearing conference memorandum is due July 20, 2009.
2. Notices of intervention are due July 22, 2009.
3. A prehearing conference will be held July 23, 2009 (10 a.m.).
ADDRESSES: Submit comments electronically via the Commission’s Filing Online system at http://www.prc.gov.
The Complaint of GameFly, Inc. (Complaint)
was filed on April 23, 2009. The Complaint asserts several claims that concern unreasonable discrimination and other undue preferences allowed by the United States Postal Service in violation of the law. In support of its Complaint, GameFly, Inc. (GameFly) alleges that the Postal Service extended preferential services and inequitable rates to certain high volume rival mailers who similarly use First-Class Mail to send and receive DVDs.
GameFly specifically contends its pieces are being processed through the automated letter mail processing equipment that continues to cause damage, and that the favored high volume DVD mailers are not suffering the high level of broken DVDs. It further alleges that ever since it resorted to higher cost flat rates and inserts to reduce breakage, it is still suffering more damage than these other mailers, while it is also paying the additional ounce postage charges and more for the flats shape of its pieces.
The Answer of the United States Postal Service (Answer) in response to the Complaint was filed on May 26, 2009, together with a Motion of the United States Postal Service for Partial Dismissal of Complaint (Motion for Partial Dismissal). The Answer denied that the Postal Service’s updated policy favors special handling by hand for inbound pieces, even though some exceptions arise in the field. The Motion for Partial Dismissal asserts that GameFly’s reliance upon 39 U.S.C. 404(b) for jurisdiction appears misplaced. On June 2, 2009, GameFly, under a Motion of GameFly, Inc. for Leave to File Reply to Requests of the USPS for Disposition of Complaint (Motion for Leave), filed a Reply of GameFly, Inc. to Requests of the USPS for Disposition of Complaint (Reply).