[Federal Register Volume 63, Number 194 (Wednesday, October 7, 1998)]
[Rules and Regulations]
[Pages 53812-53813]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26754]


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POSTAL SERVICE

39 CFR Part 501


Manufacture, Distribution, and Use of Postage Meters

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This rule clarifies and expands the sources of and uses of 
applicant information derived from applications for a license to lease 
and use postage meters, both printed and electronic versions.

EFFECTIVE DATE: October 5, 1998.

FOR FURTHER INFORMATION CONTACT: Nicholas S. Stankosky, (202) 268-5311.

SUPPLEMENTARY INFORMATION: This rule is intended to provide greater 
specificity regarding uses of the information derived from the meter 
license applications received by the United States Postal Service from 
meter users and authorized meter Manufacturers. Such information is 
hereafter referred to as ``Applicant Information.'' Applicant 
information is derived from postal forms, both printed and electronic 
versions.

Discussion of Comments

    A total of one hundred and forty one parties made comments on the 
proposed rule. Of this number, an overwhelming number indicated general 
support for the Postal Service's ability to communicate more 
effectively with its meter users. One common thought among these 
comments was that the Postal Service should be able to include the 
names of the four currently authorized meter manufacturers in customer 
communications. One party had a number of what were presented as 
business and legal concerns. These involved the Postal Service in 
possibly:
    1. Using a customer list to promote USPS services in competition 
with the private sector;
    2. Promoting or advancing the business interests of competitors;
    3. Listing competitors names in customer communications;
    4. Using a list for unspecified future uses;
    5. Having access to a manufacturer's computer files; and
    6. Issuing a communication without prior notification to the meter 
manufacturers.
    These concerns were specifically addressed and resolved with this 
party prior to the issuance of the final rule. However, this same party 
had an objection to the use of the list beyond contacts related to the 
meter program. The Postal Service considered this comment and concluded 
that inasmuch as remote set meter customers would no longer have the 
need to visit a retail facility to have their meter set, it was 
appropriate to use the list to convey information that a customer could 
have otherwise obtained from a retail outlet. Since this rule was 
proposed, the Postal Service has completed relicensing of all meter 
users. This resulted in an updated customer list.

List of Subjects in 39 CFR Part 501

    Administrative practice and procedure, Postal Service.

    Accordingly, 39 CFR part 501 is amended as follows:

PART 501--AUTHORIZATION TO MANUFACTURE AND DISTRIBUTE POSTAGE 
METERS

    1. The authority citation for 39 CFR part 501 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a): 39 U.S.C. 101, 401, 410, 2610, 2605; 
Inspector General Act of 1978, as amended (Pub L. 95-452, as 
amended), 5 U.S.C. App 3.

    2. Add section 501.29, as follows:


Sec. 501.29  Licensee information.

    (a) As stated in Sec. 501.22(b) manufacturers must transmit 
electronically, copies of completed PS Forms 3601-A, Application for a 
License to Lease and Use Postage meters, to the designated Postal 
Service central data processing facility.
    (b) The Postal Service may use applicant information in the 
administration of postage meter and metered mail activities, and to 
communicate with customers who may no longer be visiting a traditional 
USPS retail outlet. The Postal Service will also use applicant 
information to communicate with USPS customers through any new retail 
channels, and for the following purposes:
    (1) Issuance (including re-licensing, renewal, transfer, revocation 
or denial, as applicable) of a meter license to a postal patron that 
uses a postage meter, and communications with respect to the status of 
such license.
    (2) Disclosure to a meter manufacturer of the identity of any meter 
required to be removed from service by that meter manufacturer, and any 
related licensee data, as the result of revocation of a meter license, 
questioned accurate registration of that meter, or de-certification by 
the Postal Service of any particular class or model of postage meter.
    (3) Use for the purpose of tracking the movement of meters between 
a meter manufacturer and its customers and communications to a meter 
manufacturer (but not to any third party other than the applicant/
licensee) concerning such movement. The term ``meter manufacturer'' 
includes a meter manufacturer's dealers and agents.
    (4) To transmit general information to all meter customers 
concerning rate and rate category changes implemented or proposed for 
implementation by the United States Postal Service.
    (5) To advertise Postal Service services relating to the 
acceptance, processing and delivery of, or postage payment for, metered 
mail.
    (6) To allow the Postal Service to communicate with USPS customers 
on products, services and other information otherwise available to USPS 
customers through traditional retail outlets. .
    (7) Any internal use by Postal Service personnel, including 
identification and monitoring activities relating to postage meters, 
provided that such use does not result in the disclosure of applicant

[[Page 53813]]

information to any third party or will not enable any third party to 
use applicant information for its own purposes; except that the 
applicant information may be disclosed to other governmental agencies 
for law enforcement purposes as provided by law.
    (8) Identification of authorized meter manufacturers or 
announcements of de-authorization of an authorized meter manufacturer, 
or provision of currently available public information, where an 
authorized meter manufacturer is identified.
    (9) To promote and encourage the use of postage meters, including 
remotely set postage meters, as a form of postage payment, provided 
that the same information is provided to all meter customers, and no 
particular meter manufacturer will be recommended by the Postal 
Service.
    (10) To contact meter customers in cases of revenue fraud or 
revenue security except that any meter customer suspected of fraud 
shall not be identified to other meter customers.
    (11) Disclosure to a meter manufacturer of applicant information 
pertaining to that meter manufacturer's customers that the Postal 
Service views as necessary to enable the Postal Service to carry out 
its duties and purposes.
    (12) To transmit to a manufacturer all applicant and postage meter 
information pertaining to that manufacturer's customers and postage 
meters that may be necessary to permit such meter manufacturer to 
synchronize its computer meter database with information contained in 
the computer files of the Postal Service, including but not limited to 
computerized data that reside in Postal Service meter management 
databases.
    (13) Subject to the conditions stated herein, to communicate in 
oral or written form with any or all applicants any information that 
the Postal Service views as necessary to enable the Postal Service to 
carry out its duties and purposes under part 501.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 98-26754 Filed 10-6-98; 8:45 am]
BILLING CODE 7710-12-P