Postal Reform Act proposals highlight need for address verification
The battle in the U.S. Senate over the scope and consequences of the Postal Reform Act shows few signs of coming to an end. Over the past year, members of Congress have proposed and added amendments to the existing bill while postmaster general Patrick Donahoe has voiced concerns over how much control the United States Postal Service has over its health care and retirement plans. The most recent considerations to the PRA offered by Senate Homeland Security and Governmental Affairs Committee Chairman Tom Carper and Republican Sen. Tom Coburn from Oklahoma emphasize the need for address verification for businesses utilizing USPS services.
Senators support alcohol delivery
The Chicago Sun-Times reported Senators Carper and Coburn suggested the postal service begin delivering alcoholic beverages to help offset the financial challenges the government institution faces. The implications of shipping wine and spirits to residential addresses require companies to seriously consider who is able to receive shipments. Obviously, the age requirement for purchase of alcohol can be strictly regulated in stores and physical retail locations, but mailing these materials poses a potential risk if companies don't utilize address verification software.
It would also likely mandate a recipient to sign for any shipments containing alcohol, putting greater responsibility on postal service employees to ensure the integrity of deliveries. If a business accidentally delivers wine or spirits to a recipient who is restricted from buying alcohol due to age or health conditions, the company may suffer legal action. However, by delivering alcohol, the USPS would be more capable of competing with other mailing service providers that already supply this type of shipment.
USPS hopes to set mailing rates
Also included in amendments to the PRA is a mandate prohibiting the postal service from closing plant and retail facilities, according to Direct Marketing News. The measure aims to curb future layoffs, thereby preserving many existing jobs. Under existing federal regulations affecting the postal service, mailing rates are capped because they are tied to the Consumer Price Index. However, with the proposed PRA, this provision would expire, allowing the USPS to independently set rates.
The move would likely impact business mailers. Hamilton Davison, president of the American Catalog Mailers Association, told the marketing website he is concerned that removing the cap would raise costs for businesses that depend on bulk mailings. He indicated that $14 billion has been saved since the cap was put in place in 2006.
Proposed changes to the PRA will likely influence those in the direct mail marketing industry. The amendments emphasize the importance of address verification in the delivery of marketing mailers.