The News Media Alliance says a new rule from the Postal Regulatory Commission may harm newspapers. https://www.newsmediaalliance.org/new-rule-may-mean-unsustainable-postal-rates-for-newspapers/
Under the Postal Accountability and Enhancement Act (2006), products that are under the USPS monopoly, such as periodicals and marketing mail (e.g. Total Market Coverage or TMC products), experienced smaller, more predictable rate increases that did not exceed the inflation-based price cap tied to the Consumer Price Index.
On Nov. 30, the Postal Regulatory Commission approved a rule, establishing a new rate-setting system that eliminates the previously implemented cap on postage rates for periodicals and marketing mail.
Under the final rule, USPS could increase rates sometime in 2021 by as much as 7 percent above the Consumer Price Index (which does not include the approved rate increase effective Jan. 24, 2021), and by similar amounts in each of the next five years, says the News Media Alliance.
The final rule will go into effect upon its publication in the Federal Register, expected in the coming days. The PRC has indicated that the Postal Service could file a notice as early as Dec. 31, in which case the public could see USPS implementing rate changes under this new system as early as late spring of 2021.
The Alliance filed comments with the PRC opposing the proposed change.
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