[Federal Register Volume 62, Number 134 (Monday, July 14, 1997)]
[Notices]
[Pages 37631-37633]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18416]


-----------------------------------------------------------------------

POSTAL SERVICE


Privacy Act of 1974; System of Records

AGENCY: Postal Service.

ACTION: Notice of modifications and addition of three new routine uses 
to an existing system of records.

-----------------------------------------------------------------------

SUMMARY: This document publishes notice of modifications to Privacy Act 
system of records USPS 130.040, Philately--Postal Product Sales and 
Distribution, renamed by this notice to USPS 220.030, Marketing 
Records--Postal Product Sales and Distribution. The proposed 
modifications rename the system to better describe the type of 
information collected; update various segments of the system notice to 
reflect collection of information relating to new electronic retail 
concepts; and add three related routine uses.
    Two of the three new routine uses allow disclosure of limited 
information to a contractor to fulfill the agency functions of bank 
card verification, order shipping, and customer service support. The 
other routine use allows the Postal Service to discuss with either the 
sender or recipient the status of an order that may be retrieved by the 
other's name.

DATES: Any interested party may submit written comments on the proposed 
amendments and additions. This proposal will become effective without 
further notice on August 25, 1997, unless comments received on or 
before that date result in a contrary determination.

ADDRESSES: Written comments on this proposal should be mailed or 
delivered to Payroll Accounting and Records, United States Postal 
Service, 475 L'Enfant Plaza SW, Room 8800, Washington, DC 20260-5242. 
Copies of all written comments will be available at the above address 
for public inspection and photocopying between 8

[[Page 37632]]

a.m. and 4:45 p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Betty E. Sheriff, (202) 268-2608.

SUPPLEMENTARY INFORMATION: Privacy Act system of records USPS 130.040, 
Philately--Postal Product Sales and Distribution, historically has 
collected information relating to philatelic sales promotion programs. 
With the passage of time, information within the system now relates to 
both philatelic and other Postal Service-sponsored product sales. 
``Philately'' in the current title still implies that the system's 
coverage is limited to philatelic sales. Consequently, this notice 
renames the system to USPS 220.030, Marketing Records--Postal Product 
Sales and Distribution. This new name changes categorization of the 
system from ``Philately'' to the broader ``Marketing Records.''
    The modifications to the system notice do not alter the character 
or use of information contained in the system, but rather improve the 
system description to reflect information collection in today's 
environment. As stated above, the system was originally established to 
collect information related to philatelic sales. Orders for philatelic 
and, later, other postal products were submitted by way of an order 
form or other paper medium. Recently the Postal Service introduced new 
retail concepts that increase the availability of postal products and 
services. These concepts provide a convenient means for postal 
customers to place orders by way of the Internet, kiosks, and 
interactive voice response systems as well as the traditional paper 
form. The modifications proposed by this notice are intended to cover 
retail programs and the various means for placing orders. With these 
modifications, the system description will better inform the public of 
the circumstances under which the Postal Service may be maintaining 
information about them.
    The new retail programs also prompt the addition of the three 
routine uses. Routine use numbers 1 and 2 allow the Postal Service to 
disclose limited information to a contractor for the purpose of 
providing customer service support and verifying bank card 
transactions, respectively. Disclosure for these purposes is considered 
authorized by the Postal Service's general routine use ``f'' (published 
in the Federal Register on October 26, 1989 (54 FR 43654)), which 
allows disclosure to a contractor to fulfill an agency function. 
Nevertheless, routine use numbers 1 and 2 are published to better 
communicate to records subjects the key functions for which information 
may be disclosed to a contractor. Routine use number 3 permits the 
Postal Service to disclose to either the sender or recipient of an 
order information concerning the status of the order. When a customer 
places an order for a postal product, information may be maintained 
under that customer's name. However, it is frequently the intended 
recipient of the order who contacts the Postal Service concerning 
nonreceipt or other order problems. To resolve the problem, the Postal 
Service must discuss the order with the recipient. New routine use 
number 3 permits such disclosure.
    Each of the proposed routine uses is compatible with the purpose 
for collecting the information. The purpose for collecting information 
is, in part, ``to operate a subscription service or services for 
customers who remit money for a particular product or products.'' 
Because the disclosures allowed by these routine uses will enable the 
Postal Service to accept and fulfill orders for postal products and 
services, the routine uses are clearly compatible with the system's 
purpose.
    All records within this system continue to be kept in a secured 
environment. The Safeguards section of the system notice is revised to 
more fully describe the controls applied, particularly to computer 
systems and automated records. Controls have been strengthened 
commensurate with the level of protection required in support of the 
new retail concepts. Levels of the security architecture of computer 
systems have been analyzed to ensure security of the systems. 
Contractors who maintain data collected by this system are subject to 
the Privacy Act in accordance with subsection (m) and are required to 
apply appropriate protections subject to the audit and inspection of 
the Postal Inspection Service.
    Pursuant to 5 U.S.C. 552a(e)(11), interested persons are invited to 
submit written data, views, or arguments on this proposal. A report of 
the proposed system has been sent to Congress and to the Office of 
Management and Budget for their evaluation.
    USPS Privacy Act system 130.040, renamed by this notice to 220.030, 
was last published in its entirety in the Federal Register on May 20, 
1991 (56 FR 23095). The Postal Service proposes amending that system as 
shown below.
USPS 130.040
    [CHANGE TO READ] USPS 220.030.

SYSTEM NAME:
    [CHANGE TO READ] Marketing Records--Postal Product Sales and 
Distribution, 220.030.

SYSTEM LOCATION:
    [CHANGE TO READ] Marketing, Headquarters; Philatelic Fulfillment 
Center, Kansas City, MO; and contractor sites.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    [CHANGE TO READ] Customers who have responded to various philatelic 
and other Postal Service-sponsored product sales promotion programs. 
Programs include, but are not limited to, sales of philatelic products, 
postal products, and products that include licensed stamp designs, such 
as phone cards. Response may be received by submission of unsolicited 
correspondence, such as letters and preprinted and tear off order 
forms; telephone; interactive voice response systems; on-line orders 
via Internet and commercial vendors; and orders via other interactive 
electronic initiatives such as kiosk retail sales applications. 
Response may involve an order for products, opening a subscription 
account, or a request to receive future product announcements.

CATEGORIES OF RECORDS COVERED BY THE SYSTEM:
    [CHANGE TO READ] Name, address, customer profile and telephone 
number of customer who orders or subscribes to receive postal products; 
name and address of recipient of order; description of the items 
ordered and prices; payment type; credit card payment information; 
order fulfillment information; inquiries on status of orders; claims 
submitted for defective merchandise; and lists identifying individuals 
who have submitted bad checks.
* * * * *

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    [CHANGE TO READ] Routine use statements a, b, c, d, e, f, g, h, and 
j listed in the prefatory statement at the beginning of the Postal 
Service's published system notices apply to this system. Other routine 
uses follow:

    Note: Phone card information covered by the system is owned by 
phone card vendors; consequently, no routine uses apply to phone 
card information.

    1. Information from this system may be disclosed to a Postal 
Service contractor for the purpose of providing customer service 
support services with

[[Page 37633]]

regard to the acceptance and fulfillment of orders for a postal-
sponsored product.
    2. Information from this system may be disclosed to a contractor 
for the purpose of verifying bank cards when customers order postal-
sponsored products and pay by bank card. Disclosure will be limited to 
information needed for verification.
    3. Information from this system may be disclosed to the purchaser 
or intended recipient of an order for a postal-sponsored product for 
purposes of responding to his or her query regarding status of or 
problems in filling the order. Disclosure of financial information to a 
recipient will be limited to the explanation that payment is 
outstanding.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING, 
AND DISPOSING OF RECORDS IN THE SYSTEM.
STORAGE:
    [CHANGE TO READ] Paper forms and correspondence; electronic order 
forms; microform; magnetic tape and disk; and computer printouts.

RETRIEVABILITY:
    [CHANGE TO READ] Name of customer (purchaser, recipient, or 
subscriber) and identifying number, if assigned.

SAFEGUARDS:
    [CHANGE TO READ] Paper and microform records and computer storage 
tapes and disks are maintained in closed filing cabinets in controlled 
access areas or under general scrutiny of program personnel. Computers 
containing information are located in controlled access areas with 
personnel access controlled by a cypher lock system, card key system, 
or other physical access control method, as appropriate. Authorized 
persons must be identified by a badge. Computer systems are protected 
with an installed security software package, the use of computer log-on 
identifications and operating system controls including access 
controls, terminal and user identifications, and file management. On-
line data transmission is protected by encryption. Contractors must 
provide similar protection subject to operational security compliance 
reviews by the Postal Inspection Service.
* * * * *

SYSTEM MANAGER(S) AND ADDRESS:
    [CHANGE TO READ] Vice President, Operations Support, United States 
Postal Service, 475 L'Enfant Plaza SW., Washington DC 20260-7000. Chief 
Marketing Officer and Senior Vice President United States Postal 
Service 475 L'Enfant Plaza SW., Washington DC 20260-2400.
* * * * *

RECORD SOURCE CATEGORIES:
    [CHANGE TO READ] Purchasers of or subscribers to Postal Service 
products; recipients of Postal Service-sponsored products; and 
contractors.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 97-18416 Filed 7-11-97; 8:45 am]
BILLING CODE 7710-12-P