DMA Calls for Continued Movement on Postal Reform

Washington, DC, September 25, 2006 — As the House and Senate move closer to enacting postal reform legislation, the Direct Marketing Association (DMA) is calling for cooperation among key mailing industry stakeholders in order to maintain the momentum for this much-needed legislation.

As Congressional leaders work to resolve differences in the House and Senate versions of postal reform legislation, a debate has surfaced over Parcel Post rates that is threatening to undermine the postal reform efforts.

DMA remains consistent in supporting a “hard cap” on postal rate increases for all classes of mail that would be tied to the rate of inflation. Some representatives of the private-sector parcel delivery industry are pushing language in the House bill that could result in an increase of up to 40 percent in Parcel Post rates – the benchmark that many private carriers use for setting their own delivery fees.

Not only would the House language result in higher costs to consumers for sending packages either through the mail or private carriers, the current debate poses a serious threat to the effort to pass postal reform legislation before Congress adjourns for the year. Without the legislation, all mailers face significantly higher costs that could ultimately result in drastic reductions in mail volume and further revenue losses for the US Postal Service (USPS) and the businesses – both upstream and downstream – that rely on the USPS.

“We are so close to achieving postal reform, it would be a shame for it to be derailed this late in the game,” warned DMA President & CEO John A. Greco, Jr. “The private-sector parcel delivery companies are being shortsighted in not considering the immediate need for legislation that would stabilize postal rates for all types of mail, including Parcel Post. In the long run, higher shipping rates could mean far fewer packages to deliver.”

DMA is urging all of its members to encourage their Senators and Representatives to act quickly on postal reform. More information is available online at www.the-dma.org/postal.

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About DMA

The Direct Marketing Association (www.the-dma.org) is the leading global trade association of business and nonprofit organizations using and supporting multichannel direct marketing tools and techniques. DMA advocates industry standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the entire direct marketing process. Founded in 1917, DMA today has more than 4,800 corporate, affiliate, and chapter members from the US and 50 other nations, including 54 companies listed on the Fortune 100.

In 2005, companies spent an estimated $161 billion on direct marketing in the United States. Measured against total US sales, these advertising expenditures generated an estimated $1.85 trillion in increased sales in 2005, or 7 percent of the $26 trillion in total sales in the US economy (which includes intermediate sales). All together, direct marketing accounted for 10.3 percent of total US GDP in 2005.

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