We finally have a decision on penalty fees for bad addresses.  The effective date is January 4, 2010.  Below is the DMM advisory published today.  This applies to both Standard Mail and First-Class Mail.

DMM Advisory dated October 16, 2009

Move Update  

The Move Update standard requires periodic matching of a mailer’s address records with customer-filed change-of-address (COA) orders. Its goal is to reduce the number of mailpieces in a mailing that require additional handling for forwarding or return.

Yesterday we filed notice with the Postal Regulatory Commission (PRC) to describe the new method our Business Mail Entry Units (BMEU) will use to determine whether or not to assess the $0.07 Move Update charge to First-Class Mail and Standard Mail pieces evaluated during acceptance.

Originally intended for a Standard Mail implementation date of May 2009, we deferred the effective date of the new standard until January 4, 2010. For consistency with the treatment of Standard mail, we also apply the same effective date to First-Class Mail. Both classes will be assessed the additional postage charge on pieces determined at acceptance to have an error rate above a 30% tolerance level.

Sample testing will be done for each mailing accepted at MERLIN locations, and the BMEUs will provide feedback to the mailer on the effectiveness of their Move Update process. The assessment applies only to those pieces in the mailing that are found to exceed the tolerance level, based on the sampling.

Example: if a mailing is found to have an error level of 50%, then 50% minus 30% (tolerance level) = 20% of the mailing that will is assessed $0.07 per piece.

Any mailing that has five or fewer update errors is not assessed the fee, regardless of the percentage that is not updated.    

Complete details of the assessment process are available at: http://ribbs.usps.gov/move_update/documents/tech_guides/Move_Update_Advisement_Policy.pdfh

The Domestic Mail Manual (DMM) is available on Postal Explorer (pe.usps.com). To subscribe to the DMM Advisory, send an e-mail to dmmadvisory@usps.com. Simply indicate “subscribe” in the subject line.

Share on Facebook

According to a DMM Advisory from the USPS, dated October 15, 2009, they will not increase prices for market dominant products in calendar year 2010.  “Simply stated, there will not be a price increase for market dominant products including First-Class Mail, Standard Mail, periodicals, single-piece Parcel Post. There will be no exigent price increase for these products.”

According to the DMM Advisory, “this is the right decision at the right time for the right reason. Promoting the value of mail and encouraging its continued use is essential for jobs, the economy, and the future of both the Postal Service and the mailing industry.”

Increasing postal rates might have generated much needed revenue for the USPS but in the long term could drive additional mail out of the system.  This is good news for customers and for the mailing industry.  If you are wondering what will happen to other products not mentioned, “changes in pricing for our competitive products – Priority Mail, Express Mail, Parcel Select, and most international products – are under consideration.  We expect to announce a decision in November.”

“Mail is the most effective means of communication and advertising and we will continue to work together to increase the value of the mail. Mail is a smart investment for the future.”

Share on Facebook