Press release from the issuing company
Washington, DC – The Postal Regulatory Commission today issued its Advisory Opinion on the U.S. Postal Service proposal to revise service standards for First-Class Package Service (FCPS). (Docket No. N2021-2). The proposal would lengthen service standards by 1 to 2 days for approximately 31.2 percent of FCPS volume and shorten service standards by one day for approximately 4.8 percent of FCPS volume.
This Advisory Opinion is a unique undertaking for the Commission, which has not previously issued an Advisory Opinion on Competitive products. The Commission’s oversight over FCPS and other Competitive products is far more limited by law than its oversight over First-Class Mail and other Market Dominant products. While the Postal Service acknowledged in its request for an Advisory Opinion that the universal obligation applies to the FCPS product, decisions regarding Competitive products are, by law, left to the reasonable business judgment of the Governors of the Postal Service. The Governors may establish rates and classes for all competitive products, subject to minimal regulation of price and service quality. With respect to changes in service standards, the Postal Service is required to seek an Advisory Opinion from the Commission; however, the Commission lacks the authority to enforce its advice regarding the proposed changes.
The Commission finds:
In general, the Commission finds that the proposed changes appear to be consistent with applicable statutory requirements. Nevertheless, the Postal Service has not demonstrated that its implementation of the proposed changes will satisfy the requirements.
Before implementing its plan, the Commission recommends the Postal Service:
The Commission’s complete Advisory Opinion may be found on the homepage of its website: www.prc.gov.
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