Penalties Assessed by USPS June 2014

Penalties Assessed by USPS June 2014

Screen_Shot_2011-10-02_at_3_22_44_PM_large_verge_medium_landscapeOccasionally readers ask me why I spend so much time reviewing postal rules and regulations. Most often these questions are regarding meeting Move Update requirements, specs for postcards, self-mailers and letters vs flats.

In the news this week were two good examples of why understanding these regulations is crucial.

The postal service hit Southern California Edison with $7.6 million in penalties for allegedly not keeping its address lists up to date. The postal service noted a “suspiciously high increase” in the amount of undeliverable and return-to-sender First Class mail SCE sent between 2006 and 2008.

SCE acknowledged two errors in managing its address correction procedures. These errors showed up in missing apartment or suite numbers and how to handle fractional number street address (such as 29 ½ Elm Street). They contend that these instances did not cause an appreciable increase in bad addresses.

The postal service ordered a refund of postage discounts SCE earned for mail presented between May 14, 2007 and November 26, 2008. The estimate was 82 million pieces of mail at a total penalty of $7.6 million.

The second news story involved Sears allegedly violating rules for folded self-mailers. The trouble was over the placement and type of seals used on 6.3 million folded Standard Class self-mailers sent out for promotions in 2009.

Sears stated that the pieces met postal regulations or were specifically approved by postal officials because they were designed not to jam letter sorting machinery. USPS determined that the pieces needed a second tab and that some were improperly sealed with glue instead of tabs.

Sears was dinged with $1.1 million for the alleged violation.

Both Sears and Southern California Edison have filed appeals of the USPS decisions with the U.S. District Court in Washington.

Keeping up-to-date on postal rulings and regulations is no laughing matter when your company is fined for non-compliance. Please reach out to USPS Mailpiece Design Analysts and/or your outsource mail vendor. Both are there to help guide you through maximizing your mailings.

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