[Federal Register Volume 70, Number 100 (Wednesday, May 25, 2005)]
[Rules and Regulations]
[Pages 29958-29959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-10386]


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POSTAL SERVICE

39 CFR Part 111


Address Sequencing Service

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule amends section 507.7 of the Mailing Standards 
of the United States Postal Service, Domestic Mail Manual (DMM[reg]) to 
streamline the seed address process. It adopts a proposed rule that was 
published in the Federal Register (69 FR 64877, November 9, 2004.).

DATES: This rule is effective June 24, 2005.

FOR FURTHER INFORMATION CONTACT: Becky Dunn, National Customer Support 
Center, United States Postal Service, 800-238-3150.

SUPPLEMENTARY INFORMATION: On November 9, 2004, the Postal Service 
published in the Federal Register a proposed rule to amend section A920 
of the Domestic Mail Manual (69 FR 64877). The Postal Service has since 
published a final rule in the Federal Register announcing that it has 
adopted Mailing Standards of the United States Postal Service, Domestic 
Mail Manual (DMM), which redesigned and renamed Domestic Mail Manual, 
Issue 58 (70 FR 14534, March 23, 2005). The redesigned DMM has required 
that this final rule be renumbered to conform to the new numbering of 
the Mailing Standards of the United States Postal Service, Domestic 
Mail Manual. Former section A920 of the Domestic Mail Manual is now 
section 507.7 of the Mailing Standards of the United States Postal 
Service, Domestic Mail Manual. The Postal Service received eight 
comments on its proposed rule to amend former section A920 of the 
Domestic Mail Manual. Six comments fully supported the proposed 
changes. Two comments raised concerns.
    One comment expressed concern that the Postal Service would 
disclose a mailer's confidential information contained in the 
Processing Acknowledgment Form (PAF) that mailers submit. The PAF 
requires a mailer to disclose the method by which it develops an 
address list if the mailer states that it did not obtain that address 
list from a Computerized Delivery Sequence (CDS) subscriber.
    The comment expressed concerns that CDS subscribers who permit 
intermediaries to ``rent'' their lists to mailers must be held 
responsible for the actions of these intermediaries. In addition, when 
the Postal Service locates a seed in an address list, and

[[Page 29959]]

notifies both the CDS subscriber who owns the seed and the mailer who 
submitted the list, the parties may not be able to reach a resolution.
    The second comment expressed the concern that a mailer who acquires 
another business that does not sell its lists may not have records on 
how the business created its lists, particularly if the lists were 
developed over a period of many years. Thus, the mailer may not be able 
to furnish information requested on the PAF. Also, some mailers may not 
have maintained records on how they created address lists.
    After considering the concerns, the Postal Service determined not 
to change the text of its proposed changes based on the following:
    (1) The Postal Service does not share with the public information 
concerning the methodology and source information provided on the PAF.
    (2) A mailer who submits an address list containing a CDS 
subscriber's seed has many avenues available to it to resolve the 
differences concerning the use of the address list. The PAF requires 
the intermediary who ``rents'' a list to a mailer on behalf of a seed 
owner to provide the mailer with documentation establishing the 
mailer's right to use an address list. The Postal Service anticipates 
that this measure will reduce the occurrence of innocent mis-use of 
seed addresses, and will assist CDS subscribers in tracking use of 
their address lists.
    (3) An increase in the number of seed addresses provided to CDS 
customers should prevent the innocent appearance of a seed address 
disqualifying a mailer. For example, if a list contains only one seed 
address when the CDS subscriber owns several seed addresses for a ZIP 
Code \TM\, the appearance of just one of several seed addresses could 
be used to support the mailer s argument that the use of the seed 
address was innocent.
    (4) The Postal Service believes that it is reasonable to ask 
mailers submitting lists for CDS qualification to maintain records of 
where it obtained addresses when building address lists. The Postal 
Service understands that this is a new requirement, and will consider a 
mailer's inability to set forth how it created an address list on a 
case-by-case basis.
    For the reasons discussed above, the Postal Service hereby adopts 
the following amendments to the Mailing Standards of the United States 
Postal Service, Domestic Mail Manual, which is incorporated by 
reference in the Code of Federal Regulations.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

PART 111--[AMENDED]

0
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.

0
2. Amend the following sections of the Mailing Standards of the United 
States Postal Service, Domestic Mail Manual as set forth below:

Mailing Standards of the United States Postal Service, Domestic Mail 
Manual (DMM)

* * * * *

500 Additional Services

* * * * *

507 Mailer Services

* * * * *
7.0 ADDRESS SEQUENCING SERVICES
* * * * *

7.2 Service Levels

* * * * *
[Revise 7.2d and 7.2e to read as follows:]

    d. Mailers who have obtained address sequencing services described 
in 7.2.c. above and in 7.5.1 for address lists, and who have a current 
Computerized Delivery Sequence (CDS) subscription, may apply to USPS to 
obtain seed addresses to include in their address lists. Qualified CDS 
subscribers may elect to include a seed address in an address file for 
identifying the list and detecting the use of the address list by 
another mailer.
    e. If the mailer has obtained an address list from another party, 
and USPS locates a seed address when processing that address list for 
Level 3 Service, USPS will notify both the mailer who submitted the 
address list as well as the CDS subscriber to whom USPS has assigned 
the seed address. USPS will provide the CDS subscriber with the 
identity of the mailer, and will provide the mailer with the identity 
of the CDS subscriber. USPS will not release to the mailer those 
portions of the address list for the ZIP Codes containing the seed 
address, unless USPS receives written authorization to do so from the 
CDS subscriber if the mailer has obtained the address list from the CDS 
subscriber or a party acting on behalf of the CDS subscriber. USPS will 
only release those portions of the address list for ZIP Codes not 
containing seed addresses if the mailer meets the address sequencing 
requirements.

7.3 Card Preparation and Submission

* * * * *
[Revise 7.3.2 to read as follows:]

7.3.2 Limitations
    The mailer is required to remit all fees to USPS for address 
sequencing service performed by USPS, including service for which USPS 
does not release to the mailer a ZIP Code containing a seed address. 
(See 507.7.6 below.) The following apply:
    a. In order to obtain Level 3 Service, the mailer must submit 
address cards or an address file (address list) that contains at least 
ninety percent (90%), but not more than one hundred ten percent (110%) 
of all possible delivery addresses for a specific 5-digit ZIP Code 
delivery area.
    b. If a mailer requests Level 3 Service for an address list and 
fails to meet any USPS address sequencing requirements for a ZIP Code 
within that address list, the mailer may resubmit the address list for 
Level 3 Service for the 5-digit ZIP Code that fails to meet USPS 
requirements. In the event the mailer fails to meet all USPS address 
sequencing requirements for the 5-digit ZIP Code on the third time it 
submits the address list to USPS, USPS will not accept the address list 
for that 5-digit ZIP Code for a period of 1 year from the date the 
mailer submits the list to USPS for the third time.
    An appropriate amendment to 39 CFR Part 111 will be published to 
reflect these changes.

Neva R. Watson,
Attorney, Legislative.
[FR Doc. 05-10386 Filed 5-24-05; 8:45 am]
BILLING CODE 7710-12-U