[Federal Register Volume 77, Number 40 (Wednesday, February 29, 2012)]
[Notices]
[Pages 12336-12337]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-4787]


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POSTAL REGULATORY COMMISSION

[Docket No. R2012-6; Order No. 1252]


Postal Service Pricing Proposal

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recently Postal Service filing 
concerning a Summer 2012 promotion offering discounts for First-Class 
Mail and Standard mailing with mobile barcodes or other technology. 
This notice addresses procedural steps associated with this filing.

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.

DATES: Comments are due: March 12, 2012.

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. Postal Service Filing
III. Commission Action
IV. Ordering Paragraphs

I. Introduction

    On February 21, 2012, the Postal Service filed a notice with the 
Commission announcing its intent to adjust prices for several market 
dominant products within First-Class Mail and Standard Mail pursuant to 
39 U.S.C. 3622 and 39 CFR 3010.\1\ The adjustment is a 2 percent 
discount on the prices for First-Class Mail and Standard Mail letters, 
flats, and cards (presort and automation), which include a qualifying 
mobile barcode or similar print technology inside or on the qualifying 
mailpieces (2012 Promotion). Id. at 1. The 2012 Promotion is proposed 
to take effect at 12:01 a.m. on July 1, 2012 and will expire at 11:59 
p.m. on August 31, 2012. Id.
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    \1\ United States Postal Service Notice of Market-Dominant Price 
Adjustment, February 21, 2012 (Notice).
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II. Postal Service Filing

    Incentive program. The Postal Service proposes an upfront 2 percent 
discount on First-Class Mail and Standard Mail letters, flats, and 
cards (presort and automation) that include, in or on the mailpiece, a 
qualifying mobile barcode. Id. The mobile barcode must direct the 
recipients of the mailpieces to a mobile-optimized Web site that 
facilitates the purchase of a product or service, or to a personalized 
mobile Web site that is tailored to the recipient. Id. at 1, 4.
    The Postal Service states that the 2012 Promotion is designed to 
encourage mailers to accelerate their integration of more advanced 
mobile commerce and personalization techniques into their direct mail 
campaigns. Id. at 4. Participants will be required to register for and 
accept the terms of the 2012 Promotion at least 24 hours prior to

[[Page 12337]]

their first qualifying mailing. Id. at 5. Participants must disclose 
which permits will be participating in the promotion and agree to 
participate in a survey at the end of the promotional period. Id. The 
Postal Service plans to open registration around May 1, 2012. Id.
    The Postal Service will require the mailings to be submitted 
electronically via mail.dat, mail.xml or Postal Wizard. Id. Mailers 
must affirmatively claim the 2012 Promotion on their electronic postage 
submissions and certify that each mailpiece contains a mobile barcode. 
Id. Mailers must claim the 2012 Promotion discount at the time of 
mailing. Id. Postage must be paid using a permit imprint, pre-cancelled 
stamp permit, or qualifying meter mail. Id.
    Compliance with 39 U.S.C. 101(d). In its FY 2010 Annual Compliance 
Determination Report, the Commission directed the Postal Service to 
increase the cost coverage of the Standard Mail Flats product through a 
combination of above-average price adjustments and cost reductions.\2\ 
Although the Postal Service acknowledges that the 2012 Promotion will 
have the short-term effect of lowering Standard Mail Flats postage 
revenues, it contends that the long-term effect will be to encourage 
future revenue growth in Standard Mail Flats and other products by 
improving the value of direct mail to advertisers. Notice at 8. Thus, 
it concludes that the 2012 Promotion complies with the Commission's 
directive.
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    \2\ Docket No. ACR2010, Annual Compliance Determination Report, 
March 29, 2011, at 106.
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    Impact on the price cap. The Postal Service will not calculate the 
cap implication of the discount as described in rule 3010.14(b)(1) 
through (4). Id. at 9. The Postal Service states that, consistent with 
past limited-availability discounts, it intends to essentially ignore 
the effect of the price decrease resulting from the program on the 
price cap for both future and current prices. Id.
    Objectives and factors, workshare discounts, and preferred rates. 
The Postal Service lists the relevant objectives and factors of 39 
U.S.C. 3622, and claims the program ``[t]o a large extent * * * does 
not substantially alter the degree to which First-Class Mail and 
Standard Mail prices already address'' the objectives and factors. Id. 
at 9-13. In particular, the Postal Service contends that the 2012 
Promotion is an example of the increased pricing flexibility under the 
Postal Accountability and Enhancement Act (objective 4), and will 
encourage new mail volumes, which will have the effect of enhancing the 
financial position of the Postal Service (objective 5). Id. at 10. 
Similarly, the Postal Service claims that the 2012 Promotion encourages 
increased mail volume (factor 7) and will not imperil the ability of 
First-Class Mail or Standard Mail to cover its attributable costs 
(factor 2). Id. at 13.
    According to the Postal Service, the 2012 Promotion will not impact 
current workshare discounts. Id. As the 2012 Promotion does not exclude 
any mailers, the Postal Service asserts that it will not affect 
compliance with any preferred rate requirements. Id.
    Mail Classification Schedule (MCS). The Postal Service provides 
proposed MCS language in Appendix A of its Notice. It outlines the 
proposed changes in the MCS for the relevant products. Id., Appendix A.

III. Commission Action

    The Commission establishes Docket No. R2012-6 to consider all 
matters related to the Notice. The Commission's rules provide for a 20-
day comment period starting from the date of the filing of the Notice. 
See 39 CFR 3010.13(a)(5). Interested persons may express views and 
offer comments on whether the planned changes are consistent with the 
policies of 39 U.S.C. 3622 and 39 CFR 3010. Comments are due no later 
than March 12, 2012.
    The Commission appoints Derrick D. Dennis to represent the 
interests of the general public in this proceeding.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. R2012-6 to consider 
matters raised by the Postal Service's February 21, 2012 Notice.
    2. Interested persons may submit comments on the planned price 
adjustments. Comments are due no later than March 12, 2012.
    3. Pursuant to 39 U.S.C. 505, Derrick D. Dennis is appointed to 
serve as officer of the Commission (Public Representative) to represent 
the interests of the general public in this proceeding.
    4. The Secretary shall arrange for publication of this notice in 
the Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2012-4787 Filed 2-28-12; 8:45 am]
BILLING CODE P