The Direct Marketing Association (The DMA) has voiced grave concerns over the timing and size of the postal rate increase request that was filed this week. The United States Postal Service (USPS) Board of Governors (BOG) filed a rate case with the PRC, seeking a $6.1 billion hike in postage rates across the board. This proposed increase is in addition to the $3 billion in hikes that the Postal Service has implemented since January 2001. Under the USPS's proposal, the price of a First-Class stamp will jump three cents, from the current 34 cents to 37 cents.

"The Postal Service has already hit the mailing public with two rate increases this year that will take $3 billion out of the American consumers' wallets. Now they are seeking to take an additional $6.1 billion next year," said H. Robert Wientzen, president & CEO, The DMA. "In an economy that has been struggling all year and is now under additional pressure from the September 11 tragedy, it is unfathomable that the Postal Service would ask consumers and businesses to sustain yet another postage increase. Such new increases, which average 8.7 percent overall and are far in excess of the rate of inflation, will be a major drain on our softening economy." Since the approval process takes 10-12 months, the new rates could take effect just as businesses and consumers are gearing up for the 2002 holiday season. http://www.the-dma.org