[Federal Register Volume 85, Number 89 (Thursday, May 7, 2020)]
[Notices]
[Pages 27252-27253]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-09802]


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POSTAL REGULATORY COMMISSION

[Docket No. MC2020-126; Order No. 5499]


Market Dominant Products

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
requesting the removal of Customized Postage from the Mail 
Classification Schedule. This notice informs the public of the filing, 
invites public comment, and takes other administrative steps.

DATES: Comments are due: May 18, 2020.

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. Summary of Changes
III. Notice of Commission Action
IV. Ordering Paragraphs

I. Introduction

    On May 1, 2020, the Postal Service filed a formal request to remove 
Customized Postage from the Mail Classification Schedule (MCS).\1\ To 
support its Request, the Postal Service filed a copy of the Governors' 
Decision authorizing the request, a Statement of Supporting 
Justification required by 39 CFR 3040.132, and proposed changes to the 
MCS.
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    \1\ Request of the United States Postal Service to Remove 
Customized Postage from the Mail Classification Schedule, May 1, 
2020 (Request).
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II. Summary of Changes

    The Customized Postage program offers customers the ability to 
personalize postage indicia using the customers' own images or text. 
Request at 1. The program was established in 2004 as a revenue-
generating mechanism and is only offered through authorized vendors. 
Id. The Postal Service requires that authorized vendors adopt the 
eligibility criteria set forth in 39 CFR 501.21(b) to ensure the images 
included in the customized indicia are both appropriate for the program 
and protective of the Postal Service's legal, financial, and brand 
interests. Id. at 2. The Postal Service retains the right under 39 CFR 
501.21(c)(7) to suspend or revoke a vendor's authorization if it 
determines the Customized Postage products constitute an unacceptable 
business risk. Id.
    The Postal Service asserts that over time, the eligibility criteria 
have become the source of customer complaints and the subject of legal 
disputes. Id. As such, the Postal Service recently reevaluated the 
Customized Postage program to determine whether its benefits outweigh 
the business risks. Id. Its assessment found that the demand

[[Page 27253]]

and revenue for the Customized Postage program has steadily declined in 
recent years. Id. The Postal Service also determined that the number of 
requests for new authorizations has also declined, and as of June 16, 
2020, no authorized vendors will remain for the Customized Postage 
program. Id. The Postal Service states that the revenue from the 
Customized Postage program has also declined by approximately $11 
million from FY 2017 to FY 2019. Id. at 3. The Postal Service states 
that it believes it would have received the majority of the revenue 
even in absence of the Customized Postage program. Id. Therefore, the 
Postal Service determined that the business risks of the Customized 
Postage program outweigh the declining benefits of the program. Id.
    The Postal Service maintains that the removal of the Customized 
Postage program would only minimally impact consumers and small 
businesses. Id. It notes that demand for the program has been weak and 
continually declining, and notes that there are several alternatives to 
Customized Postage in the Postal Service's existing offerings. Id. at 
3-4.
    The Postal Service states that it has considered whether removal of 
the Customized Postage program is consistent with the factors and 
objectives of section 3622 as required by 39 CFR 3040.132(b). Id. at 4. 
It maintains that ``none of the factors and objectives of 39 U.S.C. 
3622 are directly applicable'' to removal of the Customized Postage 
program but that it is ``nonetheless consistent with the spirit of 
Section 3622.'' Id. at 4.

III. Notice of Commission Action

    Pursuant to 39 CFR 3040.133, the Commission has posted the Request 
on its website and invites comments on whether the Postal Service's 
filings are consistent with 39 CFR 3040.321. Comments are due no later 
than May 18, 2020. The filing can be accessed via the Commission's 
website (http://www.prc.gov).
    The Commission appoints Richard A. Oliver to represent the 
interests of the general public (Public Representative) in this docket.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. MC2020-126 to consider 
matters raised by the Notice.
    2. Comments by interested persons are due by May 18, 2020.
    3. Pursuant to 39 U.S.C. 505, Richard A. Oliver is appointed to 
serve as an officer of the Commission (Public Representative) to 
represent the interests of the general public in this proceeding.
    4. The Commission directs the Secretary of the Commission to 
arrange for prompt publication of this notice in the Federal Register.

    By the Commission.

Erica A. Barker,
Secretary.
[FR Doc. 2020-09802 Filed 5-6-20; 8:45 am]
 BILLING CODE 7710-FW-P