9. POSTECS COMPLAINT CASE: DOCKET NO. C99-1
In October 1998, United Parcel Service (UPS) filed a complaint with the PRC, pursuant to 39 U.S.C. 3662, concerning the Postal Service’s provision of PosteCS®, a wholly electronic, Internet-based document service designed to support secure electronic communications. The fundamental basis for the complaint was the allegation that the Postal Service was offering PosteCS to the public without having first submitted to the Commission a request for a Recommended Decision on classification provisions and rates associated with this service. The complaint further alleged that provision of PosteCS at no charge on an introductory basis is contrary to the pricing standard of the Postal Reorganization Act. Finally, the complaint alleged that the service constituted a “nationwide change in service” for which an advisory opinion must be requested under that Act, pursuant to 39 U.S.C. 3661.

In its motion to dismiss the complaint, the Postal Service maintained that the Commission does not have subject matter jurisdiction to entertain the question of whether PosteCS was a postal service. Even if the Commission had jurisdiction to consider the complaint, the Postal Service asserted that PosteCS was plainly not a postal service for purposes of the Commission’s jurisdiction, according to the definitions of that term put forth by the courts, the Commission, and the Governors of the Postal Service. On May 3, 1999, the Commission issued an order denying the Postal Service’s motion to dismiss and ordered further proceedings on the question of whether PosteCS is a postal service for purposes of the Commission’s rate and classification jurisdiction. On November 9, 2001, the presiding officer issued a ruling granting a motion by UPS to suspend proceedings in the complaint case, pending the conclusion of the omnibus rate case, Docket No. R2001-1.

On February 1, 2002, the Postal Service discontinued the sales function for PosteCS service. On March 1, no new customers could register for the Postal Service’s PosteCS service. As of April 30, no new transactions could be initiated with the Postal Service’s PosteCS service. Recipients could no longer access messages after May 31. In light of these events, on September 5, 2002, the presiding officer directed the Postal Service to provide a pleading declaring the status of PosteCS service. On September 19, the Postal Service requested that the Commission dismiss the complaint because the controversy was moot. On November 6, the Commission dismissed the complaint on those grounds.