[Federal Register Volume 65, Number 159 (Wednesday, August 16, 2000)]
[Rules and Regulations]
[Pages 49917-49919]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-20812]


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POSTAL SERVICE

39 CFR Part 111


Delivery of Mail to a Commercial Mail Receiving Agency

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule adopts a proposal to amend section D042.2.6e 
of the Domestic Mail Manual (DMM) to provide an additional secondary 
address designation that may be used in the delivery address for mail 
to holders of private mailboxes at commercial mail receiving agencies.

EFFECTIVE DATE: August 16, 2000. All parties must comply with the 
amendment to D042.2.6e by August 1, 2001.

FOR FURTHER INFORMATION CONTACT: Larry Maxwell, 202-268-5015.

SUPPLEMENTARY INFORMATION: On March 13, 2000, the Postal Service 
published in the Federal Register a proposed rule to amend section 
D042.2.6e of the Domestic Mail Manual (65 FR 13258-13260). The original 
rule was published as part of a comprehensive clarification and 
revision of rules concerning delivery of mail to commercial mail 
receiving agencies (CMRAs) published on March 25, 1999 (64 FR 14385-
14391). DMM section D042.2.6e established specific provisions for 
addressing mail to a holder of a private mailbox at a CMRA. As 
originally promulgated, the standard provided that the address must 
include a specific secondary address designation: ``PMB'' (for 
``private mailbox'') followed by a number assigned to the boxholder by 
the CMRA. Under the proposed change, CMRA private mailbox holders would 
have the option to use either ``PMB'' or ``#'' as the secondary address 
designation.
    The secondary address designation, as discussed in the proposed 
rule and earlier notices regarding the CMRA standards, was intended to 
serve consumer protection interests. Previously, postal regulations had 
not prescribed the manner in which mail to CMRA private mailbox holders 
must be addressed, and many private mailbox holders have used a 
designation (e.g., ``Suite'' or ``Apartment'') along with the street 
address of the CMRA. This practice implied to senders of mail that the 
boxholder maintained a physical presence at that location. These 
addressing practices create the opportunity for fulfillment of criminal 
fraud schemes. However, and as described in some comments, even where 
this was not the case, the practice may be deceptive to consumers or 
others. For example, consumers who desire to provide charitable 
donations to local organizations or to make purchases from local 
businesses might mistakenly believe they are doing so when they respond 
to an out-of-state organization or firm with an address at a local 
CMRA. For similar reasons, the local business or charity might also 
suffer a competitive disadvantage from this practice.
    Accordingly, the original rule was intended to serve consumer 
protection interests by providing the public with a means to be aware 
whether an address represented a physical location. However, the Postal 
Service later became aware the standard might have an unintended 
consequence. In meetings with industry representatives, it was pointed 
out that the ``PMB'' designation might adversely affect small 
businesses. The March 13, 2000, proposal, which permitted the use of 
either ``PMB'' or ``#'' as the secondary address designation, was 
intended as a means to balance the consumer and small business 
interests.
    The Postal Service received 20,456 comments on the rulemaking. 
These were roughly comprised of three groups. The largest group (20,153 
comments) supports the rulemaking. These comments, which were generally 
submitted by CMRA owners or private mailbox holders, were identical in 
content and format, and favored adopting the use of ``PMB'' or the 
optional ``#'' as the secondary designation. It also appears likely 
from the submissions that many of the commenters view this as a 
compromise, and that they would be at least as satisfied with the 
elimination of any required secondary address designation. However, if 
a secondary address designation was required, these commenters 
considered ``#'' to be preferable to ``PMB.''
    The smallest group (12 comments) expressly opposes the requirement 
for a secondary address designation. Representatives of small business 
groups and some CMRA private mailbox holders submitted these comments. 
They questioned whether there are appreciable fraud statistics to 
support the need for CMRA regulations. Some of these comments also 
appear to oppose any postal standards concerning the delivery of mail 
to CMRAs. To the extent these comments concern standards other than 
those proposed in DMM D042.2.6e, they are beyond the scope of this 
rulemaking.
    The remaining 291 comments oppose the proposed rule that allows the 
use of ``PMB'' or the optional ``#'' as the secondary designation. 
These comments were generally submitted by groups representing consumer 
protection constituencies, such as state attorney generals, an 
association of state charity officials, and an association of financial 
crimes investigators, as well as address list maintenance vendors, an 
association of presort mailers, major mailers, individual consumers, 
and private mailbox holders. These commenters urge the requirement for 
use of the ``PMB'' secondary address designation be retained without an 
option to use ``#'' as an alternative. They observe the ``#'' 
designation may be confusing to senders of mail, who believe it 
represents a physical location. The comments also question whether the 
use of ``PMB'' will adversely affect small businesses, and, in any 
event, assert private mailbox holders should not be permitted to use 
addresses that falsely imply a physical presence at the location. 
Significantly, some commenters appear to believe that, as proposed, 
D042.2.6e would have a negative impact on consumer protection 
interests.
    Based on its review of the current record, the Postal Service has 
determined to adopt the proposed revision to DMM D042.2.6e that allows 
the use of ``PMB'' or the optional ``#'', in certain conditions, as the 
secondary address designation for a CMRA customer.
    At the outset, it should be noted that the Postal Service rejects 
any assertion that it lacks authority to promulgate rules to protect 
consumer protection interests. The Postal Reorganization Act 
establishes Postal Service responsibilities to protect citizens from 
fraudulent and deceptive practices

[[Page 49918]]

through use of the mails. The Postal Service efforts in this area are 
widespread and ongoing; these efforts are not targeted at CMRAs. They 
include initiatives directed at frauds conducted through post office 
boxes; street addresses (rural and city delivery); and anywhere else, 
including fraudulent solicitations appearing first on the Internet that 
direct payment and shipment through the mails. Moreover, an important 
part of any anti-fraud strategy incorporates preventive means and 
consumer education so those consumers can protect themselves before 
becoming a victim. The modifications to the CMRA addressing standards 
reduce the possibilities consumers may be misled or confused by certain 
mailing address terminology. It is also noted that virtually all 
commenters and organizations that have participated in this process 
have voiced their support for protection of consumer interests and the 
Postal Service's role in this area.
    The Postal Service disagrees with comments that DMM section 
D042.2.6e, especially as amended, will be harmful to small business 
interests. Discussions with CMRA industry representatives, who 
certainly have an interest in protecting their clientele, prior to the 
publication of the proposed rule and comments received from these 
interests and many CMRA owners and private mailbox holders support the 
conclusion that the proposal provides a viable compromise for small 
businesses.
    Some commenters contend the ``#'' will cause D042.2.6e to be 
meaningless and ineffective, if not counterproductive. They observe 
that businesses should not be permitted to imply to potential customers 
that they are physically located at an address when that is not true, 
even if that deception is merely used by reputable businesses to obtain 
a competitive edge rather than for criminal purposes. These consumer 
advocates assert the use of ``#'' currently implies a ``suite'' or 
``apartment'' and that addressees will continue in the future to assume 
that it implies a physical location at that address.
    The Postal Service understands these concerns. Indeed, absent 
measures to ensure consumers will have the means to understand what 
``#'' may mean and tools to determine whether a specific address is 
located at a CMRA, the concerns could warrant withdrawal of the 
rulemaking. However, the Postal Service and the CMRA industry will 
jointly implement the following initiatives with the hope of minimizing 
these possibilities:
    1. Educate the public on the meanings of both the ``PMB'' and ``#'' 
designations. The Postal Service also stands ready to work with both 
the CMRA industry and consumer groups to design these materials and the 
means to distribute them to maximize public awareness.
    2. The Postal Service will establish methods (toll-free number and/
or Postal Service Web site) that can be accessed to determine whether a 
street address is the location of a CMRA. This will enable persons who 
receive mail with a ``#'' designation to determine whether the sender 
is a CMRA boxholder.
    3. The Postal Service will continue efforts to work directly with 
the CMRA industry to address areas of continued concern. The industry 
is working with the Postal Service to ensure implementation of the 
postal standards concerning delivery of mail to CMRAs. Additionally, 
some industry members voluntarily participate in a Postal Inspection 
Service training program to recognize and report improper activity at 
CMRA locations.
    4. The Postal Inspection Service has improved its data collection 
regarding the number of cases involving the use of off-premises 
delivery services, including post office boxes, for fraudulent 
purposes.
    In view of these steps, the Postal Service adopts the proposal to 
allow the use of the ``#'' sign as an additional secondary addressing 
option for CMRA boxholders.
    Several other aspects of the rulemaking also bear explanation. The 
standard adopted on March 25, 1999, required the use of a four-line 
address format. Under the final rule, this remains the preferred 
format. However, it was proposed that customers have the option to use 
a three-line format, with one exception, where the ``#'' secondary 
address designation is used and the physical address of the CMRA 
contains a secondary address designation, or the delivery address is a 
rural route box style address. In these limited instances, use of the 
``#'' designation is not allowed, which is necessary to ensure the 
Postal Service's automated equipment can accurately process the mail. 
The new standards accommodate these desires to use a three-line format, 
as long as that mail can be effectively processed by Postal Service 
equipment.
    The effective date of section D042.2.6e is August 1, 2001. Whenever 
possible, the Postal Service encourages mailers to use the new 
standards earlier. Nevertheless, the extended deadline for compliance 
with the standard is consistent with the Postal Service's goal of 
minimizing the implementation costs to CMRAs and their customers. It 
allows CMRA customers to deplete existing stationery and to advise 
correspondents of the new designation in the ordinary course of 
business.
    For the reasons discussed above, the Postal Service hereby adopts 
the following amendments to the Domestic Mail Manual, which is 
incorporated by reference in the Code of Federal Regulations (see 39 
CFR part 111.1).

List of Subjects in 39 CFR Part 111

    Postal Service.

PART 111--[AMENDED]

    1. The authority citation for 39 CFR part 111 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 3001-
3011, 3201-3219, 3403-3406, 3621, 5001.

    2. The Domestic Mail Manual (DMM) is amended by revising modules A, 
D, and F to read as follows:
A  ADDRESSING

A000  Basic Addressing

A010  General Addressing Standards

1.0  ADDRESS CONTENT AND PLACEMENT
* * * * *

1.2  Address Elements

    [Revise item b as follows:]
* * * * *
     b. Private mailbox designator (PMB or optional #) and number.
* * * * *
3.0  COMPLETE ADDRESS
* * * * *

3.2  Elements

    [Revise item b as follows:]
* * * * *
    b. Private mailbox designator and number (PMB 300 or #300).
* * * * *
5.0 RESTRICTIONS
* * * * *
    [Revise 5.3 as follows:]

5.3  Mail Addressed to CMRAs

    Mail sent to an addressee at a commercial mail receiving agency 
(CMRA) must be addressed to their private mailbox (PMB or #) number at 
the CMRA mailing address.
* * * * *
D  DEPOSIT, COLLECTION, AND DELIVERY

D000 Basic Information

* * * * *

[[Page 49919]]

D040 Delivery of Mail

* * * * *

D042 Conditions of Delivery

* * * * *
2.0   DELIVERY TO ADDRESSEE'S AGENT
* * * * *

2.6  Delivery to CMRA

* * * * *
    e. A CMRA must represent its delivery address designation for the 
intended addressees by the use of ``PMB'' (private mailbox) or the 
alternative ``#'' sign. Mailpieces must bear a delivery address that 
contains the following elements, in this order:
Preferred Format
    (1) Line 1: Intended addressee's name or other identification. 
Examples: JOE DOE or ABC CO.
    (2) Line 2: PMB and number or the alternative # sign and number. 
Examples: PMB 234 or #234.
    (3) Line 3: Street number and name or post office box number or 
rural route designation and number. Examples: 10 MAIN ST or PO BOX 34 
or RR 1 BOX 12.
    (4) Line 4: City, state, and ZIP Code (5-digit or ZIP+4).
    Example: HERNDON VA 22071-2716. Examples of acceptable four-line 
format addresses are:

JOE DOE
PMB 234
RR 1 BOX 12
HERNDON VA 22071-2716
    or
JOE DOE
#234
10 MAIN ST STE 11
HERNDON, VA 22071-2716
Alternate Format
    (1) Line 1: Intended addressee's name or other identification. 
Examples: JOE DOE or ABC CO.
    (2) Line 2: Street number and name or post office box number and 
PMB and number or the alternative # sign and number. Examples: 10 MAIN 
ST PMB 234 or #234 or PO BOX 34 PMB 234 or #234.
    (3) Line 3: City, state, and ZIP Code (5-digit or ZIP+4). Example: 
HERNDON VA 22071-2716.
    Exception: When the CMRA physical address contains a secondary 
address element (e.g., rural route box number, ``suite'', ``#,'' or 
other term), the CMRA customer must use ``PMB'' in the three-line 
format.
    In this case, the following must be used:

JOE DOE
10 MAIN ST STE 11 PMB 234
HERNDON VA 22071-2716
      and
JOE DOE
RR 12 BOX 512 PMB 234
HERNDON VA 22071-2716

    It is also not permissible to combine the secondary address element 
of the physical location of the CMRA address and the CMRA customer 
private mailbox number, e.g., 10 MAIN ST STE 11-234. The CMRA must 
write the complete CMRA delivery address used to deliver mail to each 
individual addressee or firm on Form 1583 (block 3). The Postal Service 
may return mail without a proper address to the sender endorsed 
``Undeliverable as Addressed, Missing PMB or # Sign.''
* * * * *
F  FORWARDING AND RELATED SERVICES

F000  Basic Services

F010  Basic Information

* * * * *
4.0  BASIC TREATMENT
    Exhibit 4.1 USPS Endorsements for Mail Undeliverable as Addressed 
[Revise Exhibit 4.1 to add new endorsement.]
* * * * *
    Undeliverable as Addressed, Missing PMB or # Sign
    Failure to Comply with D042.2.6e.
* * * * *
    Notice of issuance of the transmittal letter will be published in 
the Federal Register as provided by 39 CFR 111.3.

Stanley F. Mires,
Chief, Counsel Legislative.
[FR Doc. 00-20812 Filed 8-15-00; 8:45 am]
BILLING CODE 7710-12-U