[Federal Register Volume 69, Number 75 (Monday, April 19, 2004)]
[Proposed Rules]
[Pages 20841-20845]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-8722]


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POSTAL SERVICE

39 CFR Part 111


Eligibility Requirements for Standard Mail

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would amend the Domestic Mail Manual (DMM) 
standards concerning material eligible for mailing at Standard Mail 
postage rates. Specifically, it would clarify the circumstances in 
which mail containing ``personal'' information may be eligible for 
Standard Mail rather than First-Class Mail rates. The proposal also 
reorganizes and renumbers other provisions for First-Class Mail and 
Standard Mail to better describe the service provided under each class.

DATES: Written comments must be received on or before June 18, 2004.

ADDRESSES: Written comments should be mailed or delivered to the 
Manager, Mailing Standards, U.S. Postal Service, 1735 N Lynn St Rm 
3025, Arlington VA 22209-6038. Copies of all written comments will be 
available for inspection and photocopying at USPS Headquarters Library, 
475 L'Enfant Plaza SW., 11th Floor N, Washington DC between 9 a.m. and 
4 p.m., Monday through Friday. Comments may not be submitted via fax or 
e-mail.

FOR FURTHER INFORMATION CONTACT: Sherry Freda, Manager, Mailing 
Standards, U.S. Postal Service, 703-292-3648 or 
[email protected].

SUPPLEMENTARY INFORMATION: Certain types of mail, such as bills, 
statements

[[Page 20842]]

of account, and handwritten and typewritten material, are required to 
be mailed as First-Class Mail (which includes Priority Mail) or Express 
Mail. In addition, material having the character of actual and personal 
correspondence must be mailed as First-Class Mail or Express Mail.
    As technology has evolved, mailers have been able to increase the 
amount of personal information in computer-generated mailings, 
including advertising material typically entered as Standard Mail. 
These advances in technology have motivated some Postal Service 
customers to request more explicit guidance on Standard Mail 
eligibility. The Postal Service has reviewed the standards and proposes 
the following revisions to the Domestic Mail Manual to clarify the 
distinction between First-Class Mail and Standard Mail.

Background

    Postal Service standards for First-Class Mail and Standard Mail are 
based, in part, on laws enacted by Congress. These regulations specify 
that printed material weighing less than 16 ounces may be sent as 
Standard Mail if it is not required to be entered as First-Class Mail. 
Generally, mail wholly or partially in writing or typewriting, mail 
closed against postal inspection, material having the character of 
actual and personal correspondence, and bills and statements of account 
must be mailed as First-Class Mail or Express Mail.
    Printed material, most of which is prepared by computers, often 
qualifies at the Standard Mail rates. If it includes personal 
information, printed material may have the character of actual and 
personal correspondence and be subject to the First-Class Mail rates. 
However, under certain conditions, printed material containing personal 
information may be eligible for Standard Mail rates.
    The distinction is based on a regulation adopted by the Postal 
Service in the early 1980s. At that time, as computers were becoming 
increasingly sophisticated and commonplace, mailers were able to 
include personal information to individuals in an otherwise generic 
mailing. Marketers began to use personal information, such as 
information concerning previous purchases, to influence an addressee to 
make new purchases. Since such materials, albeit without the personal 
information, usually had been sent at Standard Mail rates, mailers 
sought to continue to use those rates.
    These efforts resulted in the adoption of the standards in current 
DMM E610.2.3, which create a limited exception to the general principle 
that material containing personal information be entered as First-Class 
Mail. Over the last several years this provision has become more 
significant. As mailers have been able to build more complex data files 
on customers, they have increasingly sought to include personal 
information in Standard Mail mailings. Furthermore, questions have been 
raised recently concerning printed material, including computer-
generated personal information in mailpieces such as tax materials, 
warranties, proxy materials, financial services mailings such as credit 
card and equity loan advertisements, and others. Some of these mailings 
included advertising, while others did not. Given the potential 
consequences of a decision that a mailing is not eligible for Standard 
Mail rates, mailers have sought, and the Postal Service proposes, the 
following guidance to distinguish First-Class Mail from Standard Mail.
    The classification of a mailpiece is based upon an examination of 
its specific contents. This rulemaking is intended to help mailers and 
Postal Service employees determine how to design and decide whether 
mail may be sent as Standard Mail or First-Class Mail, and help mailers 
plan and budget for their mailing campaigns.

Summary of Standard Mail Eligibility Decisions and the Scope of the 
Proposed Changes

    As the Postal Service has discussed with customers, the proposed 
changes are intended to create a ``bright line'' concerning the 
inclusion of personal information in Standard Mail. Other eligibility 
standards are left unchanged, although we reorganized them for clarity 
and to better describe our services.
    This proposal concerns the content limits for Standard Mail. 
However, before considering whether the content of printed material 
qualifies for entry as Standard Mail, there are basic requirements to 
consider. First, there is a weight limit on Standard Mail: each piece 
must weigh less than 16 ounces. There are also volume and preparation 
requirements. Mail that does not comply with any of these standards is 
not eligible for Standard Mail rates, regardless of content. These 
provisions are not affected by the proposal.
    To be eligible for Standard Mail rates, printed material must be 
sent in identical terms to more than one person. This standard has not 
changed.
    Mail that is authorized to be entered as Periodicals mail is 
ineligible for Standard Mail rates. The proposal does not affect this 
restriction.
    Mail that is required to be mailed as First-Class Mail, and is 
therefore ineligible for Standard Mail, includes material containing 
the following: (1) Bills and statements of account; (2) handwritten or 
typewritten material; (3) mail sealed against postal inspection; and 
(4) material having the character of actual and personal 
correspondence. This proposal would not affect any of the first three 
categories.
    The Domestic Mail Manual does not provide any exceptions to the 
requirement that mail having the character of actual and personal 
correspondence be entered as First-Class Mail other than the 
stipulation that the inclusion of the date and name of the addressee 
and sender does not render a piece ineligible for Standard Mail. 
However, as explained above, the Postal Service created standards in 
the early 1980s recognizing technological advancements that permitted 
the inclusion of personalized information in advertising material 
historically sent as Standard Mail. Customers sought to include such 
personal information in their mailings, without forfeiting eligibility 
to mail at Standard Mail rates, because the inclusion of this 
information increased the effectiveness of their advertising.
    An example of such a mailpiece is one produced by a firm that 
markets and ships candies. Rather than sending a generic catalog to 
potential customers, the company includes with the catalog a list of 
the specific purchases the addressee made the previous year (i.e., the 
items purchased and the names and addresses of the recipients) and asks 
whether the addressee wishes to duplicate or add to that order. The 
previous year's purchases are considered to be personal information for 
the addressee. However, that information is directly related to the 
mailer's advertising for the sale of its products, has no intended use 
other than to increase the effectiveness of the advertising, and has no 
purpose other than to promote additional sales of candy. Consequently, 
the mailing is eligible for Standard Mail rates.

The ``Exclusive Purpose'' Test

    The Postal Service continues to believe that this example mailpiece 
should be entitled to Standard Mail rates, and this proposal would not 
change its eligibility. The mailpieces that are the subject of recent 
concerns are certain pieces with the dual purpose of conveying personal 
information to the addressee while advertising a product or service or 
soliciting donations. Postal Service standards did not provide guidance 
for accepting dual-

[[Page 20843]]

purpose pieces that convey personal information.
    Clarifying the standards should benefit mailers and consumers. For 
mailers, this lack of guidance for dual-purpose mailpieces has led to 
two consequences. First, they might be uncertain if a piece would be 
accepted at Standard Mail rates, making budgeting and marketing 
decisions difficult. And second, a competitive advantage might be 
created if they are required to mail at First-Class Mail rates while a 
business competitor is permitted to mail a similar piece at Standard 
Mail rates. Clarifying the standard should ensure that nonmarketing, 
personal material is mailed as First-Class Mail. First-Class Mail is 
sealed against postal inspection and is the most secure class of mail. 
Clarifying the standard has become increasingly important given the 
heightened awareness and sensitivity about the need to safeguard 
personal information.
    While reviewing the cases that prompted customer concerns it became 
clear that it was important to establish a ``purpose'' test. Customer 
comments confirmed that this issue needed to be addressed. After 
careful review, the Postal Service proposes that personal information 
be permitted in advertising and solicitation mail sent at Standard Mail 
rates only when advertising or solicitation is the exclusive purpose of 
the piece, and personal information is included solely to increase the 
effectiveness of the advertising or solicitation.
    There are three reasons for this choice. First, but of least 
importance, it is consistent with the spirit of the original rulemaking 
in the 1980s. We caution that this is the least important reason since 
the standard could be changed if there are worthy reasons for changing 
it.
    Second, it is open to question whether dual-purpose pieces--pieces 
intended to convey personal information to the addressee as well as to 
advertise products or services or solicit donations--are eligible for 
Standard Mail rates. The authority on which the DMM standards are 
based, the Domestic Mail Classification Schedule and, before that, 
federal statute, provides that material having the character of actual 
and personal correspondence is not eligible for Standard Mail rates. It 
is questionable whether such material is eligible for Standard Mail 
rates by ``piggybacking'' on advertising or solicitation matter that, 
by itself, is eligible for that rate.
    Finally, an ``exclusive purpose'' test lends itself to clearer 
administration. It will promote consistent classification decisions by 
Postal Service personnel and an understanding among customers of how 
their mail will be classified. In turn, this will promote two of the 
goals that mailers have advised are important to them: (1) Certainty in 
planning and budgeting mailing campaigns; and (2) minimizing situations 
where a business, because of mail classification decisions, gains a 
competitive advantage over another business.

Explanation of Proposed Changes

    The proposed standards reorganize and renumber Domestic Mail Manual 
E110 and E610, which provide the basic descriptions of First-Class Mail 
and Standard Mail. These revisions, which do not effect any substantive 
changes, are intended to better describe our services and allow 
customers to compare the characteristics and benefits of each.
    The clarification of the circumstances in which personal 
information may be included in Standard Mail is in proposed E610.3.1. 
In addition, the provisions for First-Class Mail, E110.3.4, would 
clearly explain that mail eligible for Standard Mail rates under new 
E610.3.1 would not be required to be entered as First-Class Mail.
    One change between the existing and proposed standards is that the 
proposed provisions no longer differentiate between ``circulars'' and 
other types of printed material as do current E610.2.1 and E610.2.2. 
Similar standards apply to all printed material entered as Standard 
Mail.
    The existing provisions explaining when personal information may be 
included in Standard Mail, current E610.2.3, would be renumbered and 
revised as E610.3.1. Current provisions E610.2.3(a), (b), and (c) would 
be deleted from the proposed standards. These provisions describe 
certain types of personal information that might be included in 
Standard Mail under proposed E610.3.1. However, we do not see a reason 
to limit the types of personal information that might be included in 
Standard Mail under the revised standard. Rather, under the proposal, 
personal information might be included in Standard Mail if the piece 
meets the conditions outlined in proposed E610.3.1.
    In contrast to current DMM E610.2.3, revised E610.3.1 would list 
the conditions that must be met for a mailpiece containing personal 
information to be eligible for Standard Mail rates. If a mailpiece 
contains personal information concerning the addressee, it will be 
eligible for Standard Mail rates only if it meets each of the following 
conditions: (1) It contains explicit advertising for a product or 
service for sale or lease or a solicitation for a donation; (2) all of 
the personal information concerning the addressee is directly related 
to the advertising or solicitation; and (3) advertising or soliciting 
is the exclusive purpose of the mailpiece.
    Whether the piece contains personal information will be determined 
under the same policies as those that apply today. As explained in 
proposed E110.3.2, personal information includes any information 
specific to the addressee. For the purposes of applying the standard, 
personal information need not be unique to the addressee: for example, 
two addressees may share the same birthday, which is personal 
information specific to the addressee, but not unique to one addressee 
alone.
    The Postal Service will make a determination of mailpiece 
eligibility based on the mailpiece itself. For example, numbers that 
are not labeled or elsewhere defined in the mailpiece are not 
considered to be personal, even if information provided apart from the 
mailpiece reveals the numbers to be PINs or other personal information. 
Instructions or other information in the mailpiece that are provided 
equally to all addressees in the mailing are not considered personal. 
And, finally, under the conditions in proposed E610.3.1, even if 
personal information is included in the mailpiece it will not 
disqualify it from entry at Standard Mail rates if conditions (a) 
through (c) are met.
    The requirement that the mailpiece contain advertising for a 
product or service for sale or lease or a solicitation for a donation 
is similar to the current standard, except that the proposal states 
that the advertising or solicitation must be explicit. That is, the 
advertisement or solicitation should not be ``subtle'' or ``implied.'' 
Anyone reading the piece should understand that it includes advertising 
or a solicitation and should be able to easily identify the product or 
service advertised or the cause for which donations are sought.
    The requirement that the personal information be directly related 
to the advertising or solicitation is similar to the current standard. 
The proposal makes clear that all of the personal information must be 
directly related to the advertisement or solicitation.
    Proposed E610.3.1(c) explains the ``exclusive purpose'' test, which 
is discussed more fully in an earlier section of this notice. Under 
this standard, the personal information in the piece should have no 
intended purpose other than to increase the appeal of the advertising 
or solicitation.

[[Page 20844]]

A finding that the personal information has an intended use other than 
to increase the appeal of the advertising or solicitation may be based, 
for example, on how the information is labeled (i.e., if the piece 
explains a use for the information), or on the sender's legal, 
contractual, or other obligation to provide the information to the 
addressee.
    The mere fact that the information may incidentally serve some 
useful purpose to the addressee does not disqualify the piece from 
entry at Standard Mail rates. For example, in the candy shipper 
scenario described above, the list of the names and addresses of the 
previous year's purchases may remind the addressee of a relative's 
address he or she had misplaced. However, that was not the intended use 
of that information and would not disqualify the piece from entry at 
Standard Mail rates.

Implementation Schedule

    If the proposal is adopted, the Postal Service intends to defer its 
implementation until January 1, 2005. This time frame is intended to 
provide customers adequate time to budget and plan future mail 
campaigns. Until then, the Postal Service will continue to apply the 
current standards.
    As explained in previous sections of this notice, most of the 
current policies would remain intact under the proposed standard, with 
the major difference being the ``exclusive purpose'' test in proposed 
E610.3.1(c). Accordingly, if personal information is included in the 
mailpiece, it still must be directly related to advertising for a 
product or service for sale or lease or solicitation for donations to 
qualify for Standard Mail rates before January 1, 2005. However, until 
that date, the Postal Service will not employ a purpose test, and a 
piece in which the personal information is directly related to 
advertising or a solicitation will qualify for Standard Mail rates 
without regard to compliance with a purpose test.
    If the proposal is adopted, the Postal Service will review and 
revise as needed existing Customer Support Rulings concerning Standard 
Mail and will issue new rulings as appropriate.
    Although exempt from the notice and comment requirements of the 
Administrative Procedure Act [5 U.S.C. 553(b),(c)] regarding proposed 
rulemaking by 39 U.S.C 410(a), the Postal Service invites comments on 
the following proposed revisions to the Domestic Mail Manual, which is 
incorporated by reference in the Code of Federal Regulations. See 39 
CFR 111.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, 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, 414, 
416, 3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

    2. Revise the following sections of the Domestic Mail Manual (DMM) 
as set forth below:

E ELIGIBILITY

* * * * *

E100 First-Class Mail

E110 Basic Standards

    [Renumber current 2.0 through 5.0 as 4.0 through 7.0. Replace 
current 1.0 with new 1.0, 2.0, and 3.0, as follows:]
1.0 DESCRIPTION OF SERVICE

1.1 Service Objectives

    First-Class Mail receives expeditious handling and transportation. 
Service objectives for delivery are 1 to 3 days; however, delivery time 
is not guaranteed.

1.2 Rate Options

    First-Class Mail offers the flexibility of single-piece rates, and 
discounted rates for mailings of 500 or more pieces that weigh 13 
ounces or less.

1.3 Mailable Items

    First-Class Mail may be used for any mailable item, including 
postcards, letters, flats, and small packages. Customized MarketMail 
under E660 and other restricted material as described in C020 may not 
be mailed as First-Class Mail.
2.0 DEFINING CHARACTERISTICS

2.1 Inspection of Contents

    First-Class Mail is closed against postal inspection. Federal law 
and Postal Service regulations restrict both opening and reviewing the 
contents of First-Class Mail by anyone other than the addressee.

2.2 Forwarding Service

    The price of First-Class Mail includes forwarding service to a new 
address for up to 12 months.

2.3 Return Service

    The price of First-Class Mail includes return service if the 
mailpiece is undeliverable.

2.4 Extra Services Exclusive to First-Class Mail

    First-Class Mail is the only class of mail eligible to receive the 
following extra services: registered mail service and certified mail 
service.

2.5 Additional Extra Services

    Additional extra services available with First-Class Mail are 
certificate of mailing service, COD service, Delivery Confirmation 
service (parcels only), insured mail service (merchandise only), return 
receipt service, restricted delivery service, Signature Confirmation 
service (parcels only), and special handling. See S900.
3.0 CONTENT STANDARDS

3.1 Bills and Statements of Account

    Bills and statements of account must be mailed as First-Class Mail 
(or Express Mail) as follows:
    a. Bills and statements of account assert a debt in a definite 
amount owed by the addressee to the sender or a third party. In 
addition, bills include a demand for payment; statements of account do 
not include a demand for payment. The debt does not have to be due 
immediately but may become due at a later time or on demand. The debt 
asserted need not be legally collectible or owed.
    b. Bills and statements of account do not need to state the precise 
amount due if they contain information that would enable the debtor to 
determine that amount.

3.2 Personal Information

    Mail containing personal information must be mailed as First-Class 
Mail (or Express Mail). Personal information is any information 
specific to the addressee.

3.3 Handwritten and Typewritten Material

    Mail containing handwritten or typewritten material must be mailed 
as First-Class Mail (or Express Mail).

3.4 Material Not Required to be Mailed as First-Class Mail

    Mail eligible for Standard Mail or Package Services rates under 
E610 or E700 is not required to be mailed as First-Class Mail or 
Express Mail.
* * * * *

E600 Standard Mail

E610 Basic Standards

    [Renumber current 3.0 through 9.0 as 4.0 through 10.0. Replace 
current 1.0 and 2.0 with new 1.0, 2.0, and 3.0, as follows:]

[[Page 20845]]

1.0 DESCRIPTION OF SERVICE

1.1 Service Objectives

    Standard Mail may receive deferred handling. Service objectives for 
delivery are 2 to 9 days; however, delivery time is not guaranteed.

1.2 Quantity

    Standard Mail provides economical rates for mailings of 200 or more 
pieces or at least 50 pounds of mail.
2.0 DEFINING CHARACTERISTICS

2.1 Mailpiece Weight Limit

    All Standard Mail pieces--letters, flats, and small packages--must 
weigh less than 16 ounces.

2.2 Preparation Requirements

    Standard Mail is subject to specific volume, marking, and 
preparation requirements.

2.3 Inspection of Contents

    Standard Mail is not sealed against postal inspection.

2.4 Forwarding Service

    The price of Standard Mail does not include forwarding service. 
Forwarding is available for an additional fee. Undeliverable Standard 
Mail with no ancillary service endorsement is disposed of by the Postal 
Service under F010.5.3.

2.5 Return Service

    The price of Standard Mail does not include return service. Return 
service is available under F010.5.3 for an additional fee.

2.6 Extra Services

    Extra services available with Standard Mail are insured mail 
service (bulk insurance only), certificate of mailing service (bulk 
certificate of mailing only), return receipt for merchandise service, 
and Delivery Confirmation service (parcels only). See S900.

2.7 Periodicals

    Authorized Periodicals may not be entered as Standard Mail unless 
permitted by standard.

2.8 Identical Pieces

    The contents of printed matter in a Standard Mail mailing must be 
identical to a piece sent to at least one other addressee. Standard 
Mail may include the addressee's name and address but may not transmit 
personal information except as permitted under 3.0.
3.0 CONTENT STANDARDS

3.1 Personal Information

    Personal information may not be included in a Standard Mail 
mailpiece unless all of the following conditions are met:
    a. The mailpiece contains explicit advertising for a product or 
service for sale or lease or an explicit solicitation for a donation.
    b. All of the personal information is directly related to the 
advertising or solicitation.
    c. Advertising or solicitation is the exclusive purpose of the 
mailpiece.

3.2 Bills and Statements of Account

    Mail containing bills or statements of account as defined in 
E110.3.0 may not be entered as Standard Mail except under the 
conditions described in 5.2.

3.3 Handwritten and Typewritten Matter

    Mail containing handwritten or typewritten matter may not be 
entered as Standard Mail except under the conditions described in 4.0.
    An appropriate amendment to 39 CFR part 111 will be published if 
the proposal is adopted.

Neva R. Watson,
Attorney, Legislative.
[FR Doc. 04-8722 Filed 4-16-04; 8:45 am]
BILLING CODE 7710-12-P