• by November 14, 2000

The Direct Marketing Association (The DMA) -- the largest organization representing businesses and organizations that use Internet advertising and direct mail - has expressed its disappointment with the Postal Rate Commission's (PRC) recommended postal rate increases announced in Washington, D.C. this morning.

"We are disappointed," said DMA President & CEO H. Robert Wientzen. "Although the PRC responded positively to our position that rates proposed last January by the U.S. Postal Service (USPS) would have impeded economic growth, weakened the USPS itself, and imposed an unnecessary burden on American businesses and consumers, the PRC has nonetheless rejected The DMA's call for more moderate postal rates for all mailers across the board.

"While we would have preferred to have no increase at all, a moderate increase commensurate with the rate of inflation may have been reasonable," Wientzen said. "Sadly, the PRC has rejected our call to moderate all rates of postage for all mailers."

Specifically, the average increases for each class of mail are: 1.8% for First-Class; 9.9% for Periodicals; 4.5% for Regular Standard Enhanced Carrier Route; 8.8% for all other Regular Standard; 2.7% for Parcel Post; 17.6% for Bound Printed Matter; 16% for Priority Mail; 7.2% for Nonprofit Periodicals; and 4.8% for Nonprofit Standard.

Responding to the PRC's recommended rate hikes, Jerry Cerasale, DMA senior vice president, government affairs, explained, "When you take into account the increase in competition that the Postal Service will face from competitors and emerging technologies, it is clear to us that the USPS should maintain its key postal rates well within the growth rate of inflation in order to survive. We appeal to the USPS Board of Governors to consider these factors as they guide the Postal Service in the 21st century."

What happens next? The USPS Board of Governors will consider the PRC's recommendations and, if approved, the new rates could take effect as early as January 2001.