The Postal Rate Commission, considering a challenge to the legality of an Internet-based document delivery service for direct marketers and others, Tuesday ordered the U.S. Postal Service to provide it with detailed information about the service by March 1.
The PRC said it needs the information to “clarify” the legal issues in the challenge raised by United Parcel Service of America Inc. and the Coalition Against Unfair USPS Competition (CAUUC) before deciding whether to continue hearing the challenge or dismissing it.
Atlanta-based UPS alleges the USPS began offering the service without the approval of its Board of Governors or the PRC and that the rates, allegedly subsidized by revenues from other mail classes, are artificially low. According to the USPS Post E.C.S. is not a postal service as defined by law, does not come under PRC jurisdiction and can only be challenged in federal court.
Before deciding whether to continue hearing the matter, the PRC said it wants a detailed history of the service the USPS began testing last July in partnership with Canada Post and France’s La Poste, including its present status, the authority under which it is or has been provided and if or when the USPS will ask its Board of Governors for permission to continue testing the service.
The USPS was ordered to produce copies of all documents, including “memorandum(s) of understanding, contract(s) or other instrument(s) governing the joint provision of Post E.C.S.” with Canada Post and La Poste in addition to detailed information about the “terms and conditions under which the USPS has provided Post E.C.S to U.S. companies” and if they are governed by the agreements with Canadian and French postal officials.
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