[Federal Register Volume 85, Number 115 (Monday, June 15, 2020)]
[Notices]
[Pages 36245-36246]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12838]


=======================================================================
-----------------------------------------------------------------------

POSTAL REGULATORY COMMISSION

[Docket No. MT2020-2; Order No. 5539]


Market Test of Experimental Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Commission is noticing a recently filed Postal Service 
proposal to conduct a market test of an experimental product called 
Extended Mail Forwarding. This notice informs the public of the filing, 
invites public comment, and takes other administrative steps.

DATES: Comments are due: June 30, 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. 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 3045, the Postal 
Service filed notice of its intent to conduct a market test of an 
experimental product called Extended Mail Forwarding.\1\ The Postal 
Service states that currently, when residential and commercial postal 
customers move, they may file a permanent Change of Address (COA) 
request for the forwarding of mail addressed to their old address to 
the new address for one year. Notice at 1. After one year, mail bearing 
the customer's old address is returned to sender or wasted. Id. at 2. 
Extended Mail Forwarding will provide customers who submit a permanent 
COA request with the option of extending forwarding of all First-Class 
Mail, First-Class Package Service Commercial, and Priority Mail pieces 
beyond the one year period for a fee. Id. The Postal Service intends 
for the market test to run for two full years beginning on August 1, 
2020. Id. at 3.
---------------------------------------------------------------------------

    \1\ United States Postal Service Notice of Market Test of 
Experimental Product--Extended Mail Forwarding, June 8, 2020 
(Notice).
---------------------------------------------------------------------------

II. Background

    On June 8, 2020, the Postal Service filed the Notice proposing the 
Extended Mail Forwarding market test. The Postal Service asserts that 
Extended Mail Forwarding will ensure customers receive mailpieces for 
which they are the intended recipient and which is more essential than 
ever before in light of the Coronavirus-19 pandemic. It states that 
customers will exercise greater control over their mail forwarding 
expiration dates with more time to update and communicate with their 
mailing contacts. Id. The Postal Service also asserts that Extended 
Mail Forwarding will provide cost savings for the Postal Service 
because the cost of forwarding is less than the cost of handling 
Undeliverable as Addressed mailpieces. Id. at 4.
    The Postal Service states that Extended Mail Forwarding will be

[[Page 36246]]

available to customers when they submit their permanent COA request. 
After that time, customers would be able to request and pay for 
Extended Mail Forwarding either up until the end date of the market 
test, or within 18 months of submitting their initial COA request, 
whichever comes first. Id.
    The Postal Service states that Extended Mail Forwarding will be 
tested in nine postal districts throughout the country that represent a 
cross-sample of COA requests by volume according to 2019 data. Id. at 
3. Customers submitting permanent COA requests in these districts 
during the market test will be eligible to participate in the market 
test. Id.
    The Postal Service plans to offer initial pricing for Extended Mail 
Forwarding of $19.95 for one 6-month extension, $29.95 for two 6-month 
extensions, and $39.98 for three 6-month extensions. Id. at 2. Any 
customer who signs up initially for one or two extensions for $19.95 or 
$29.95 would be able to request additional extensions up to a total of 
three 6-month extensions for $19.95 for each extension. Id.

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 3045. First, the Postal 
Service explains that Extended Mail Forwarding is ``significantly 
different from all products offered by the Postal Service within the 
last two years'' as required by 39 U.S.C. 3641(b)(1). Id. at 4. The 
Postal Service states that Extended Mail Forwarding is ``critically 
different'' from the Premium Forwarding Service competitive product 
because Extended Mail Forwarding is associated with a permanent COA 
request enabled by the Postal Automated Redirection System (PARS). 
Premium Forwarding Service is first delivered to the address on the 
mailpiece, then repackaged and inducted back into the postal network 
for delivery to the forwarding address. Id.
    The Postal Service also asserts that the proposed service is 
``significantly distinct'' from Commercial P.O. Box Redirect Service 
because that service will be available only to Commercial P.O. Box 
customers to redirect automated First-Class Mail letters to a P.O. Box 
with Caller Service using a different postal system. Id. at 5. Thus, 
the Postal Service asserts that Extended Mail Forwarding, while it may 
be considered similar to Commercial P.O. Box Redirect Service, will 
service a significantly different market with different cost 
characteristics. Id.
    Second, the Postal Service asserts that Extended Mail Forwarding 
``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. The Postal Service states that all individuals, 
families, and businesses who are currently eligible to file a permanent 
COA request moving from or into one of the test districts may 
participate. Id.
    The Postal Service asserts that because only it forwards mail under 
a permanent COA request, no other business offers a similar product or 
service. It also asserts that Extended Mail Forwarding will have no 
impact on small business concerns except to provide them with the 
option of extending their forwarding requests if they permanently 
change addresses. Id.
    Third, the Postal Service states that Extended Mail Forwarding is 
properly categorized as market dominant as required by 39 U.S.C. 
3641(b)(3). Id.

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: Number of extension requests, number of customers, ratio of 
individuals, families, and businesses, volume of mailpieces forwarded, 
and revenues. Id. at 6. The Postal Service also states that it will 
collect data on the attributable costs of Extended Mail Forwarding, 
including administrative costs. Id.

V. Notice of Commission Action

    The Commission establishes Docket No. MT2020-2 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 3045. Comments are due no later than June 
30, 2020. The filing can be accessed via the Commission's website 
(http://www.prc.gov).
    The Commission appoints Richard A. Oliver 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. MT2020-2 to consider the 
matters raised by the Notice.
    2. Pursuant to 39 U.S.C. 505, Richard A. Oliver 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 June 30, 2020.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2020-12838 Filed 6-12-20; 8:45 am]
 BILLING CODE 7710-FW-P