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BtoB

Commercial mailers file opposition to postage rate hikes

Published on .

New York—Marketing groups and businesses are galvanizing their opposition to a U.S. Postal Service request to raise postage rates, appealing to the Postal Regulatory Commission on Monday to reject the USPS request.

The Affordable Mail Alliance, a coalition of more than 700 businesses, nonprofit organizations and associations, said the Postal Service's request to boost its rates an average of 5.6%—and much higher on certain classes of commercial mailings—beginning next year would be potentially devastating to commercial mailers.

“The service has a lot more work to do to bring their costs under control before turning to its customers for yet another rate increase,” said Jerry Carasale, senior VP-government affairs with the Direct Marketing Association, an AMA member, in a statement.

American Business Media, another AMA member, also opposed the rate hike for its potentially negative impact on periodical mailings, postage for which would rise 8%, if approved.

While the Postal Service is restricted by law to seek to raise postage rates no higher than the current rate of inflation, now less than 1%, it is claiming an “exigent” need to do so because of recessionary pressures and the flight of many consumer and business communications to electronic channels.

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