September 30, 2010 — The Direct Marketing Association (DMA) today praised the decision of the Postal Regulatory Commission (PRC) to reject an excessive postal rate hike proposed by the US Postal Service (USPS). DMA led efforts on behalf of its members encouraging the PRC to reject the USPS request for an unlawful and exorbitant rate increase.
The requested rate hike would have increased postal rates by nearly ten times the rate of inflation, requiring customers to pay an additional $3 billion annually for postage, despite the current rate of inflation remaining close to zero. The PRC decision requires the USPS to continue following the current law which limits any postage increase to the rate of inflation.
“Today’s decision is a great victory for businesses and consumers. The US Mail will remain a viable and affordable communications channel. The knowledge that postage rates will not rise faster than inflation is also an important element for the business community already operating in an extremely challenging business environment,” said Lawrence M. Kimmel, DMA’s CEO. “This, however, is only a first step. USPS customers must continue to work together, and with Congress, to help the Postal Service maintain competitiveness in the marketplace.”
USPS must now make critical decisions to cut costs and right-size its network and workforce. As it conducts negotiations with many of its employees, the USPS must not lose sight of the fact that its financial well-being, and that of its customers, depend on immediate and significant cost reductions.
“DMA will work closely with Congress to correct the over-funding of postal pensions so that companies are not taxed to subsidize other government programs,” concluded Kimmel. “We are fighting for reforms that will ensure a viable postal system able to meet the needs of consumers and the business community for generations to come.”
About Direct Marketing Association (DMA)
The Direct Marketing Association (www.the-dma.org) is the leading global trade association of businesses and nonprofit organizations using and supporting multichannel direct marketing tools and techniques. DMA advocates standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the end-to-end direct marketing process. Founded in 1917, DMA today represents companies from dozens of vertical industries in the US and 48 other nations, including nearly half of the Fortune 100 companies, as well as nonprofit organizations.