A coalition of associations and other businesses want the Postal Regulatory Commission to reject the U.S. Postal Service's request to raise the postal rates by three times the inflation rate.
The group believes USPS' argument is flawed, arguing that the agency's money woes are a result of people using the Internet more, not of the recession, which the agency claims.
Alliance for Nonprofit Mailers executive director Tony Conway said, “If you take the Postal Service’s study at face value, then all of the mail volume losses since 2007 are the result of the 2007-2009 recession, and none result from digital diversion. To make it even more improbable, the USPS says that the effects of the recession, which ended several years ago, will get worse in 2014 and 2015. It’s hard to imagine anyone could take these claims seriously.”
The Postal Accountability and Enhancement Act of 2006 limits the average rate increases to the rate of inflation. To raise the rate beyond that, the USPS must file an exigent rate case with the PRC. The last rate increase was 1.6 percent.
Coalition members include, among others, MPA-the Association of Magazine Media, Direct Marketing Association, Alliance for Nonprofit Mailers, National Newspaper Association and Software & Information Industry Association.