[Federal Register Volume 84, Number 162 (Wednesday, August 21, 2019)]
[Notices]
[Pages 43624-43625]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17957]
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POSTAL REGULATORY COMMISSION
[Docket No. MT2019-1; Order No. 5200]
Market Test of Experimental Product
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
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SUMMARY: The Commission is noticing a recently filed Postal Service
proposal to conduct a market test of an experimental product called
Plus One. This notice informs the public of the filing, invites public
comment, and takes other administrative steps.
DATES: Comments are due: September 5, 2019.
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: David A. Trissell, General Counsel, at
202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Background
III. Compliance With Legal Requirements
IV. Data Collection
V. Notice of Commission Action
VI. Ordering Paragraphs
I. Introduction
In accordance with 39 U.S.C. 3641 and 39 CFR part 3035, the Postal
Service filed notice of its intent to conduct a market test of an
experimental product called Plus One.\1\ Plus One is an addressed
advertising card that may be mailed as an add-on piece with a USPS
Marketing Mail Letters ``marriage mail'' envelope containing multiple
advertising pieces. Notice at 1. Marriage mail is a service provided by
third-party mail service providers who combine advertisements from
multiple businesses into a single mailpiece. Id. The Postal Service
intends for the market test to run for two full years beginning on
October 1, 2019. Id. at 5.
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\1\ United States Postal Service Notice of Market Test of
Experimental Product--Plus One, August 13, 2019 (Notice).
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II. Background
On August 13, 2019, the Postal Service filed the Notice proposing
the Plus One market test. The Postal Service asserts that it is
critical to continue innovating to position mail as an attractive
advertising channel because small- and medium-sized businesses with
limited marketing budgets may choose from an array of advertising
channels to reach potential customers. Id. at 1. The Postal Service
explains that Plus One will benefit small- and medium-sized businesses,
mail service providers, and the Postal Service. Id. at 2. Plus One
mailings must meet several requirements described in the Notice. Id.
The Postal Service states that it will test four different price
points ranging from 8.5 cents to 10.0 cents. Id. For purposes of the
market test, the Postal Service divided the United States into four
geographic areas: West (including Alaska and Hawaii), South, Midwest,
and Northeast. Id. To the extent practical, each region contains
destinating Sectional Center Facilities that serve each of four tiers
of population density:
Large (6,600 to 47,362 individuals per square mile)
Mid-tier (1,000 to 6,600 individuals per square mile)
Small (185 to 1,000 individuals per square mile)
Sparse (fewer than 185 individuals per square mile)
Id. at 2-3. Each region has been randomly assigned one of four
prices: 8.5 cents (West), 9.0 cents (Northeast), 9.5 cents (Midwest),
and 10.0 cents (South). The Postal Service filed an accompanying
workbook listing each 3-Digit ZIP Code and its associated price.\2\
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\2\ Id. Excel file ``NoticeAttachment.xlsx.''
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III. Compliance With Legal Requirements
The Postal Service asserts that the proposed market test meets the
requirements in 39 U.S.C. 3641 and 39 CFR part 3035. First, the Postal
Service explains that Plus One is ``significantly different from all
products offered by the Postal Service'' within the last 2 years as
required by 39 U.S.C. 3641(b)(1). Notice at 3. It acknowledges that the
inspiration for Plus One arose in part from the Detached Marketing
Labels (DML) option developed for flat-shaped USPS Marketing Mail
Saturation mailpieces. Id. However, the Postal Service asserts that
Plus One is different because it is developed for mailers of letter-
shaped mailpieces. Id. The Postal Service describes several material
differences between Plus One and DMLs. Id. at 4.
Second, the Postal Service asserts that Plus One ``will not create
an unfair or otherwise inappropriate competitive advantage for the
Postal Service or any mailer'' as required by 39 U.S.C. 3641(b)(2). Id.
It notes that the chosen prices more than cover the costs for
Saturation letters and that Plus One will correct any potential market
disruption resulting from the availability of DMLs for flat-shaped
mailpieces but not for letter-shaped mailpieces. Id. It asserts that
Plus One will create more advertising opportunities via the mail for
small businesses, which will foster a market more responsive to small
business needs. Id. at 4-5.
Third, the Postal Service states that Plus One is properly
categorized as market dominant as required by 39 U.S.C. 3641(b)(3). Id.
at 5.
IV. Data Collection
To better understand the results of the market test, the Postal
Service asserts that it will collect the following data on a quarterly
basis: Volumes by location,
[[Page 43625]]
revenue collected from the add-on Plus One piece, number of
participating customers, and average size of mailing. Id. at 5-6. The
Postal Service also states that it will collect data on the
attributable costs of Plus One, including administrative costs. Id. at
6.
V. Notice of Commission Action
The Commission establishes Docket No. MT2019-1 to consider matters
raised by the Notice. The Commission invites comments on whether the
Postal Service's filing is consistent with the requirements of 39
U.S.C. 3641 and 39 CFR part 3035. Comments are due no later than
September 5, 2019. The filing can be accessed via the Commission's
website (http://www.prc.gov).
The Commission appoints Gregory Stanton to serve as an officer of
the Commission to represent the interests of the general public in
these proceedings (Public Representative).
VI. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. MT2019-1 to consider the
matters raised by the Notice.
2. Pursuant to 39 U.S.C. 505, Gregory Stanton is appointed to serve
as an officer of the Commission to represent the interests of the
general public in these proceedings (Public Representative).
3. Comments are due no later than September 5, 2019.
4. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Darcie S. Tokioka,
Acting Secretary.
[FR Doc. 2019-17957 Filed 8-20-19; 8:45 am]
BILLING CODE 7710-FW-P