When will the penalties for Move Update non-compliance be announced?
Postal reform legislation passed in 2006 requires a 45-day review and comment period for the Postal Regulatory Commission (PRC) when the USPS is introducing any new prices or products. Industry experts expect the USPS to begin the PRC review of non-compliance penalties in February 2009. Penalties are expected to take effect in May 2009.
What are the penalties likely to be when the USPS does file a request?
A penalty of $.07 per piece, applicable to the entire mailing, has been widely discussed for Standard mail.
How did the USPS come up with the $.07 per piece figure?
Standard mail does not have a "full rate" as First-Class mail does. The difference between the First-Class full letter rate and the discounted rate at the 5 digit, 3 digit, AADC and Mixed AADC categories averages out to $.07. Voila!
When will penalty enforcement begin?
It is doubtful that we will see non-compliance fines imposed until the USPS MERLIN equipment is upgraded to enable it to test the accuracy of the name/address hygiene. We expect this to happen around February 2009. In the meantime, the USPS will be working with offenders to bring them into compliance before imposing a fine.
Does this mean we don't have to comply with Move Update until February 2009?
No, it means that there is a grace period of several months before penalties are assessed for failure to meet the Move Update requirements, but mailers are not absolved from the responsibility to comply with the new regulations. Your Production Solutions contact will be pleased to help you prepare USPS form 6014 to document your compliance with the Move Update requirements.