Market Test of Experimental Product

Published date15 June 2020
Record Number2020-12838
SectionNotices
CourtPostal Regulatory Commission
Federal Register, Volume 85 Issue 115 (Monday, June 15, 2020)
[Federal Register Volume 85, Number 115 (Monday, June 15, 2020)]
                [Notices]
                [Pages 36245-36246]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-12838]
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                POSTAL REGULATORY COMMISSION
                [Docket No. MT2020-2; Order No. 5539]
                Market Test of Experimental Product
                AGENCY: Postal Regulatory Commission.
                ACTION: Notice.
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                SUMMARY: The Commission is noticing a recently filed Postal Service
                proposal to conduct a market test of an experimental product called
                Extended Mail Forwarding. This notice informs the public of the filing,
                invites public comment, and takes other administrative steps.
                DATES: Comments are due: June 30, 2020.
                ADDRESSES: Submit comments electronically via the Commission's Filing
                Online system at http://www.prc.gov. Those who cannot submit comments
                electronically should contact the person identified in the FOR FURTHER
                INFORMATION CONTACT section by telephone for advice on filing
                alternatives.
                FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at
                202-789-6820.
                SUPPLEMENTARY INFORMATION:
                Table of Contents
                I. Introduction
                II. Background
                III. Compliance with Legal Requirements
                IV. Data Collection
                V. Notice of Commission Action
                VI. Ordering Paragraphs
                I. Introduction
                 In accordance with 39 U.S.C. 3641 and 39 CFR part 3045, the Postal
                Service filed notice of its intent to conduct a market test of an
                experimental product called Extended Mail Forwarding.\1\ The Postal
                Service states that currently, when residential and commercial postal
                customers move, they may file a permanent Change of Address (COA)
                request for the forwarding of mail addressed to their old address to
                the new address for one year. Notice at 1. After one year, mail bearing
                the customer's old address is returned to sender or wasted. Id. at 2.
                Extended Mail Forwarding will provide customers who submit a permanent
                COA request with the option of extending forwarding of all First-Class
                Mail, First-Class Package Service Commercial, and Priority Mail pieces
                beyond the one year period for a fee. Id. The Postal Service intends
                for the market test to run for two full years beginning on August 1,
                2020. Id. at 3.
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                 \1\ United States Postal Service Notice of Market Test of
                Experimental Product--Extended Mail Forwarding, June 8, 2020
                (Notice).
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                II. Background
                 On June 8, 2020, the Postal Service filed the Notice proposing the
                Extended Mail Forwarding market test. The Postal Service asserts that
                Extended Mail Forwarding will ensure customers receive mailpieces for
                which they are the intended recipient and which is more essential than
                ever before in light of the Coronavirus-19 pandemic. It states that
                customers will exercise greater control over their mail forwarding
                expiration dates with more time to update and communicate with their
                mailing contacts. Id. The Postal Service also asserts that Extended
                Mail Forwarding will provide cost savings for the Postal Service
                because the cost of forwarding is less than the cost of handling
                Undeliverable as Addressed mailpieces. Id. at 4.
                 The Postal Service states that Extended Mail Forwarding will be
                [[Page 36246]]
                available to customers when they submit their permanent COA request.
                After that time, customers would be able to request and pay for
                Extended Mail Forwarding either up until the end date of the market
                test, or within 18 months of submitting their initial COA request,
                whichever comes first. Id.
                 The Postal Service states that Extended Mail Forwarding will be
                tested in nine postal districts throughout the country that represent a
                cross-sample of COA requests by volume according to 2019 data. Id. at
                3. Customers submitting permanent COA requests in these districts
                during the market test will be eligible to participate in the market
                test. Id.
                 The Postal Service plans to offer initial pricing for Extended Mail
                Forwarding of $19.95 for one 6-month extension, $29.95 for two 6-month
                extensions, and $39.98 for three 6-month extensions. Id. at 2. Any
                customer who signs up initially for one or two extensions for $19.95 or
                $29.95 would be able to request additional extensions up to a total of
                three 6-month extensions for $19.95 for each extension. Id.
                III. Compliance With Legal Requirements
                 The Postal Service asserts that the proposed market test meets the
                requirements in 39 U.S.C. 3641 and 39 CFR part 3045. First, the Postal
                Service explains that Extended Mail Forwarding is ``significantly
                different from all products offered by the Postal Service within the
                last two years'' as required by 39 U.S.C. 3641(b)(1). Id. at 4. The
                Postal Service states that Extended Mail Forwarding is ``critically
                different'' from the Premium Forwarding Service competitive product
                because Extended Mail Forwarding is associated with a permanent COA
                request enabled by the Postal Automated Redirection System (PARS).
                Premium Forwarding Service is first delivered to the address on the
                mailpiece, then repackaged and inducted back into the postal network
                for delivery to the forwarding address. Id.
                 The Postal Service also asserts that the proposed service is
                ``significantly distinct'' from Commercial P.O. Box Redirect Service
                because that service will be available only to Commercial P.O. Box
                customers to redirect automated First-Class Mail letters to a P.O. Box
                with Caller Service using a different postal system. Id. at 5. Thus,
                the Postal Service asserts that Extended Mail Forwarding, while it may
                be considered similar to Commercial P.O. Box Redirect Service, will
                service a significantly different market with different cost
                characteristics. Id.
                 Second, the Postal Service asserts that Extended Mail Forwarding
                ``will not create an unfair or otherwise inappropriate competitive
                advantage for the Postal Service or any mailer'' as required by 39
                U.S.C. 3641(b)(2). Id. The Postal Service states that all individuals,
                families, and businesses who are currently eligible to file a permanent
                COA request moving from or into one of the test districts may
                participate. Id.
                 The Postal Service asserts that because only it forwards mail under
                a permanent COA request, no other business offers a similar product or
                service. It also asserts that Extended Mail Forwarding will have no
                impact on small business concerns except to provide them with the
                option of extending their forwarding requests if they permanently
                change addresses. Id.
                 Third, the Postal Service states that Extended Mail Forwarding is
                properly categorized as market dominant as required by 39 U.S.C.
                3641(b)(3). Id.
                IV. Data Collection
                 To better understand the results of the market test, the Postal
                Service asserts that it will collect the following data on a quarterly
                basis: Number of extension requests, number of customers, ratio of
                individuals, families, and businesses, volume of mailpieces forwarded,
                and revenues. Id. at 6. The Postal Service also states that it will
                collect data on the attributable costs of Extended Mail Forwarding,
                including administrative costs. Id.
                V. Notice of Commission Action
                 The Commission establishes Docket No. MT2020-2 to consider matters
                raised by the Notice. The Commission invites comments on whether the
                Postal Service's filing is consistent with the requirements of 39
                U.S.C. 3641 and 39 CFR part 3045. Comments are due no later than June
                30, 2020. The filing can be accessed via the Commission's website
                (http://www.prc.gov).
                 The Commission appoints Richard A. Oliver to serve as an officer of
                the Commission to represent the interests of the general public in
                these proceedings (Public Representative).
                VI. Ordering Paragraphs
                 It is ordered:
                 1. The Commission establishes Docket No. MT2020-2 to consider the
                matters raised by the Notice.
                 2. Pursuant to 39 U.S.C. 505, Richard A. Oliver is appointed to
                serve as an officer of the Commission to represent the interests of the
                general public in these proceedings (Public Representative).
                 3. Comments are due no later than June 30, 2020.
                 4. The Secretary shall arrange for publication of this order in the
                Federal Register.
                 By the Commission.
                Erica A. Barker,
                Secretary.
                [FR Doc. 2020-12838 Filed 6-12-20; 8:45 am]
                 BILLING CODE 7710-FW-P
                

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