Live From Washington: OCA Proposes Rate Case Initiatives

First Class rates should stay at 33 cents, courtesy envelopes should be implemented and business and consumer mailers should be on different rate change schedules, Ted Gerarden, director of the Office of the Consumer Advocate for the Postal Rate Commission said yesterday at the Direct Marketing Association’s Government Affairs Conference 2000 in Washington, DC.

Gerarden said plans call for making a number of proposals to the United States Postal Service regarding its rate increases. They include:

* implementing reduced rates for sending courtesy reply envelopes. “It’s time to reward consumers with the benefit of the low cost, automated handling of this cheap mail,” he said.

* putting business mail and consumer mail on different schedules for rate changes. The single-piece, First Class stamp rate would change at every other rate case. Currently 14.5 billion pieces of mail enter the mail stream from households that pay 5.6 billion in postage, or about 7% of mail volume and 10% of postage. Rates for business mailers is proposed to change at every rate case. (On Tuesday, John Nolan, deputy postmaster general for the USPS confirmed a two-year calendar for rate changes.)

* coordinating interested parties, between rate cases, to work on complicated rate case issues

* moving in the direction to simplify the rate case

Gerarden also encouraged DMA members and other direct marketers to increase Internet shipping choices and find easier ways for consumers to return and exchange merchandise to improve the e-shopping experience. He says that 25% of online orders are returned and that customers need ease, low costs and choice of ways to get packages back to the e-tailer.

In addition, to further its mission the OCA is implementing 10 steps of which Gerarden emphasized the following three.

* to argue for equity on behalf of individuals and small business, both as senders and receivers of mail and mail services

* to engage in dialogue with parties or participate in proceedings before the commission to advance the interests of consumers

* to encourage the equitable settlement of issues among the parties and participate in proceedings whenever possible