[Federal Register Volume 76, Number 223 (Friday, November 18, 2011)]
[Notices]
[Pages 71610-71611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-29808]


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POSTAL REGULATORY COMMISSION

[Docket No. MT2012-1; Order No. 959]


Market Test of First-Class Tracer

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently-field Postal Service 
proposal to conduct a market test of a market dominant product, First-
Class Tracer. This document describes the proposed test, addresses 
procedural aspects of the filing, and invites public comment.

DATES: Comment deadline: November 28, 2011.

ADDRESSES: Submit comments electronically by accessing the ``Filing 
Online'' link in the banner at the top of the Commission's Web site 
(http://www.prc.gov) or by directly accessing the Commission's Filing 
Online system at https://www.prc.gov/prc-pages/filing-online/login.aspx. Commenters who cannot submit their views electronically 
should contact the person identified in the FOR FURTHER INFORMATION 
CONTACT section as the source for case-related information for advice 
on alternatives to electronic filing.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at (202) 789-6820 (case-related information) or [email protected] 
(electronic filing assistance).

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Introduction
II. Background
III. Notice of Filing
IV. Ordering Paragraphs

I. Introduction

    On November 7, 2011, the Postal Service filed a notice, pursuant to 
39 U.S.C. 3641(c)(1), announcing its intent to initiate a market test 
beginning on or about December 7, 2011, of an experimental market 
dominant product, First-Class Tracer.\1\ The market research test will 
consist of providing customers a means to track the transportation and 
processing of single-piece First-Class Mail. Id. at 1.
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    \1\ Notice of the United States Postal Service of Market Test of 
Experimental Product First-Class Tracer, November 7, 2011 (Notice).
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II. Background

    The Postal Service states that consumers have continuously looked 
for ways to track single-piece First-Class Mail through the postal 
system. Id. at 1-2. It proposes the instant market test of the First-
Class Tracer as a convenient and highly visible means of providing 
commercial mailers and individual consumers a tool through which to 
gain information on the transportation and processing of their First-
Class Mail letters. Id. The Postal Service sees the market test as a 
way to leverage product design, development, and distribution of 
resources with minimal competitive impact. Id. at 2.
    The Postal Service explains that the proposed market test will 
consist of retail distribution sales of the First-Class Tracer to 
consumers in specific test locations. Id. at 1. Sales will be revenue 
generating, and the Postal Service will test different prices in 
different test locations. Id. Expenses incurred will be considered 
research and development costs incurred in connection with new product 
development. Id.
    Statutory authority. The Postal Service indicates that its proposal 
satisfies the criteria of section 3641, which imposes certain 
conditions on experimental products. 39 U.S.C. 3641. For example, the 
Postal Service asserts that the First-Class Tracer is significantly 
different from all products offered by the Postal Service within the 
meaning of section 3641(b)(1). Id. at 4. In addition, it contends that 
the product will only be available at retail, apply solely to a market 
dominant product, and will not create an unfair or inappropriate 
competitive advantage for the Postal Service or any mailer. Id. at 5; 
see also section 3641(b)(2). The Postal Service states that the First-
Class Tracer

[[Page 71611]]

is correctly classified as a market dominant product. Id.; see also 
section 3641(b)(3). The Postal Service does not anticipate that the 
annual revenues from the market test will exceed $10,000,000, as 
adjusted for inflation in any fiscal year, pursuant to 39 U.S.C. 
3641(e), (g). Id. at 4, 6.
    Product description and nature of market test. Pursuant to section 
3641(c)(1)(B), the Postal Service provides a description of the nature 
and scope of the market test. The product will be offered at 50 retail 
locations around the Washington, DC metropolitan area in two packaged 
quantities, a five-label pack and ten-label pack. Id. at 3. Test prices 
will vary according to the test location. Id. Depending on early test 
results, the Postal Service may offer alternative packaging quantities 
and change sale channels. Id. The Postal Service states that the 
duration of the market test will not exceed 24 months unless the Postal 
Service requests an extension from the Commission. Id. at 6.
    A First-Class Tracer, which consists of a barcoded label, tracing 
number, and QR Code, will allow customers to obtain information on the 
processing and transportation of their First-Class letters. Id. at 2-3. 
First-Class Tracer service does not receive a delivery scan. Id. at 2. 
The Postal Service provides an illustrative figure of the First-Class 
Tracer in its filing notice. Id. at 3.

III. Notice of Filing

    The Commission establishes Docket No. MT2012-1 for consideration of 
matters raised by the Notice. Interested persons may submit comments on 
whether the Postal Service's filing in the captioned docket is 
consistent with the policies of 39 U.S.C. 3641. Comments are due no 
later than November 28, 2011. The filing can be accessed via the 
Commission's Web site (http://www.prc.gov).
    The Commission appoints Kenneth R. Richardson to serve as Public 
Representative in this docket.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. MT2012-1 for consideration 
of the matters raised by the Notice.
    2. Pursuant to 39 U.S.C. 505, Kenneth R. Richardson is appointed to 
serve as officer of the Commission (Public Representative) to represent 
the interests of the general public in this proceeding.
    3. Comments by interested persons are due no later than November 
28, 2011.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2011-29808 Filed 11-17-11; 8:45 am]
BILLING CODE 7710-FW-P