[Federal Register Volume 78, Number 150 (Monday, August 5, 2013)]
[Notices]
[Pages 47431-47432]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-18819]


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POSTAL REGULATORY COMMISSION

[Docket Nos. C2009-1R, MC2013-57 and CP2013-75; Order No. 1794]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning the addition of Round-Trip Mailer to replace the existing 
market dominant mailer options for round-trip DVD mail. This notice 
informs the public of the filing, invites public comment, and takes 
other administrative steps.

DATES: Comments are due: August 15, 2013. Reply Comments are due: 
August 22, 2013.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. Those who cannot submit comments 
electronically should contact the person identified in the FOR FURTHER 
INFORMATION CONTACT section by telephone for advice on filing 
alternatives.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6820.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Notice of Filings
III. Ordering Paragraphs

I. Introduction

    On July 26, 2013, the Postal Service filed a request to create a 
new competitive product, tentatively called ``Round-Trip Mailer,'' to 
replace existing market dominant mailer options for round-trip DVD 
mail.\1\ The Request, submitted in response to the Commission's order 
on remand in Docket No. C2009-1R, equalizes the rates for letter-shaped 
and flat-shaped round-trip DVD mail.
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    \1\ Docket No. C2009-1R, Request of the United States Postal 
Service Under Section 3642 to Create Round-Trip Mailer Product, July 
26, 2013, at 2 (Request). See Order No. 1763, Docket No. C2009-1R, 
Order on Remand, June 26, 2013 (Order No. 1763).
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    The Request is made pursuant to 39 U.S.C. 3642 and 39 CFR 3020.30 
et seq. As proposed, the requested changes would: (1) remove Letter 
Round-Trip Mailer and Flat Round-Trip Mailer from the market dominant 
product list; and (2) add the new Round-Trip Mailer product to the 
competitive product list. Request, Attachment B. The Request has been 
assigned Docket No. MC2013-57.
    The Postal Service contemporaneously filed proposed changes to the 
Mail Classification Schedule (MCS) that contain outbound and return 
prices for the proposed Round-Trip Mailer product. Those changes have 
been assigned Docket No. CP2013-75.
    Request. The Request includes the following supporting material:

[[Page 47432]]

     Attachment A--a Statement of Supporting Justification 
addressing applicable rule 3020.32 requirements;
     Attachment B--proposed Mail Classification Schedule 
language; and
     Attachment C--a letter dated May 17, 1985, describing the 
Postal Service's interpretation of the Private Express Statutes as they 
apply to the overseas transmission of computer software in the form of 
magnetic media.
    Product description. The existing Letter Round-Trip Mailer and Flat 
Round-Trip Mailer classifications were established by Order No. 718, in 
response to the Commission's finding of discrimination in Docket No. 
C2009-1.\2\ The Postal Service asserts that the proposed Round-Trip 
Mailer product would be ``functionally similar'' to the existing First-
Class Mail Round-Trip Mailer. Id. Attachment A at 1. It further states 
that ``service standards and processing elements'' of the proposed 
product would be ``identical to the service currently received by 
First-Class Mail letters and flats.'' Request at 3.
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    \2\ Docket No. C2009-1, Order on Complaint, April 20, 2011, 
Appendix B (Order No. 718).
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    The Postal Service contends that, although the existing First-Class 
Mail Round-Trip Mailer is currently classified as market dominant, it 
fulfills all of the criteria for competitive products under 39 U.S.C. 
3633. Id. Attachment A at 2-3. The Postal Service describes the 
proposed Round-Trip Mailer product as one that competes with ``newer 
and increasingly dominant forms of digital content delivery,'' such as 
online streaming and physical DVD rental services. Id. at 4. However, 
it acknowledges that it is not aware of ``another shipping company that 
provides door-to-door delivery of optical discs such as DVDs.'' Id. at 
3. The Postal Service argues that the proposed product is ``outside the 
scope of the letter monopoly because it is not a letter, or because the 
letter content is within the scope of one of the exceptions/suspensions 
to the Private Express Statutes.'' Id. at 5. It bases this argument on 
the content of the proposed product, which would be limited to optical 
discs, invoices, and advertisements. Id.
    Additional Information. The Request, which proposes to add a new 
product to the competitive product list, failed to include information 
required by 39 CFR part 3015. Not later than August 5, 2013, the Postal 
Service shall file with the Commission: (1) sufficient revenue and cost 
data for the 12-month period following the effective date of the 
proposed rates to demonstrate that the proposed Round-Trip Mailer 
product will be in compliance with 39 U.S.C. 3633(a)(2); and (2) a 
certified statement by a representative of the Postal Service attesting 
to the accuracy of the data submitted, and explaining why, following 
the effective date of the proposed rates, competitive products in total 
will be in compliance with 39 U.S.C. 3633(a)(1) and (3). See 39 CFR 
3015.3.
    Board of Governors' approval. The Postal Service states that it 
intends to present the proposal contained in the Request to the Board 
of Governors for approval on July 31, 2013. Request at 4. If the Board 
of Governors does not approve the proposal or chooses to amend it, the 
Postal Service will ``amend or rescind'' its Request. Id. at 4. To 
avoid potential confusion, the Postal Service shall file with the 
Commission notice of the determination of the Board of Governors with 
respect to the Request as soon as practicable, but no later than August 
2, 2013.
    Potential subsequent proceedings. Consistent with Order No. 1763, 
if the Postal Service amends its Request pursuant to a determination by 
the Board of Governors, the effective date of any rates proposed in the 
amended Request shall be no later than September 30, 2013. See Order 
No. 1763 at 39, ] 2.
    The intent of this phase of the proceeding is to implement a remedy 
responsive to the Court's remand in GameFly v. Postal Regulatory 
Commission, 704 F.3d 145 (D.C. Cir. 2013). The Postal Service has 
elected to equalize rates for eligible Round-Trip Mailers by reducing 
the price for a two-ounce First-Class flat-shaped round-trip DVD mailer 
to the price for a one-ounce First-Class letter-shaped round-trip DVD 
mailer. Consistent with Order No. 1763, if the Postal Service rescinds 
its Request or if the Commission denies the Request to establish the 
Round-Trip Mailer product as a competitive product, the Letter Round-
Trip Mailer and Flat Round-Trip Mailer options established by Order No. 
718 shall remain on the market dominant product list and the Postal 
Service shall implement the rates and associated MCS language changes 
provided in the third ordering paragraph of Order No. 1763. These 
changes shall be effective no later than September 30, 2013. See Id. at 
39, ] 3.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2013-57 and CP2013-75 for 
consideration of the Request. Interested persons may submit comments on 
whether the Postal Service's filings in the captioned dockets are 
consistent with the policies of 39 U.S.C. 3633, 3642 and 3662 and 39 
CFR part 3015 and 3020, subpart B. Comments are due no later than 
August 15, 2013. Reply comments, if any, are due August 22, 2013. These 
filings can be accessed via the Commission's Web site (http://www.prc.gov).
    The Commission appoints Tracy N. Ferguson to serve as the Public 
Representative in Docket Nos. MC2013-57 and CP2013-75.\3\
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    \3\ Ms. Ferguson also serves as Public Representative in Docket 
No. C2009-1R. See Order No. 1788, Docket No. C2009-1R, Notice and 
Order Designating Substitute Public Representative, July 24, 2013.
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III. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2013-57 and CP2013-75 
for consideration of the Request of the United States Postal Service 
Under Section 3642 to Create Round-Trip Mailer Product.
    2. Pursuant to 39 U.S.C. 505, Tracy N. Ferguson is appointed to 
serve as an officer of the Commission (Public Representative) to 
represent the interests of the general public in Docket Nos. MC2013-57 
and CP2013-75.
    3. The Postal Service shall file the additional information 
identified in this order no later than August 5, 2013.
    4. The Postal Service shall file notice of the determination of the 
Board of Governors with respect to the Request as soon as practicable, 
but no later than August 2, 2013.
    5. Comments by interested persons in these proceedings are due no 
later than August 15, 2013.
    6. Reply comments are due no later than August 22, 2013.
    7. The Secretary shall arrange for the publication of this order in 
the Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2013-18819 Filed 8-2-13; 8:45 am]
BILLING CODE 7710-FW-P