9. Complaint on Stamped Stationery:
Docket No. C2004-3

On June 24, 2004, a complaint was filed with the PRC concerning stamped stationery issued by the Postal Service on June 23, 2004. The stationery consists of sheets of paper imprinted with indicia that are representations of The Art of Disney: Friendship postage stamps. The sheets can be used to write a message and address and, once folded and sealed, can be mailed using First-Class Mail service. The price for 12 sheets is $14.95, including postage. The complainant believes that the stationery is within jurisdiction asserted by the PRC in the 1970s, similar to stamped envelopes, stamped cards, and aerogrammes. The complainant seeks to initiate a classification proceeding to establish this product within the Domestic Mail Classification Schedule and to have fees established based on recommendations from the PRC.

The Postal Service filed an answer to these specific allegations August 2004, and is preparing a motion to dismiss the proceeding.

10. Complaint on Collection Box Removal:
Docket No. C2003-1

On November 21, 2002, a complaint was filed with the PRC, alleging that removal of collection boxes had caused a nationwide change in service for which no request for an Advisory Opinion had been sought and such removal had resulted in collection service that was inadequate. The Postal Service filed an answer in December 2002, explaining that, historically, fluctuations in the number of collection boxes were typical, and that, with the exception of boxes removed for concerns of public and employee health and safety, recent box removals were intended to be conducted in accordance with long-established guidelines.

To support its position that removals of collection boxes have not had a material effect on customer service, the Postal Service offered to file Customer Satisfaction Measurement (CSM) scores from customer surveys. Since Postal Service policy is not to disclose such data publicly, the Postal Service requested that the PRC impose protective conditions on the CSM scores that would limit their use to the complaint proceeding.

In July 2003 the PRC denied the request for protective conditions. The Postal Service moved for reconsideration. In August 2003 the Postal Service filed comments on the certified question, noting that similar scores had been subject to protective conditions in the most recent omnibus rate case.

In February 2004 the PRC concluded that it was unwilling to grant the CSM scores in question the same protected status as such material had been afforded in the last omnibus rate case. In response to the PRC's order, the Postal Service indicated that it would not seek to rely on CSM scores and maintained that sufficient grounds existed, independent of those scores, to warrant dismissal of the complaint. The case is still pending.

11. Complaint on First-Class Mail Service Standards:
Docket No. C2001-3

On May 19, 2001, a complaint was filed with the PRC, alleging that in 2000 and 2001 the Postal Service implemented changes in 2- and 3-day service standards for First-Class Mail service on a nationwide or substantially nationwide basis without first requesting a PRC Advisory Opinion. The complaint also alleged that the First-Class Mail service resulting from these service standard changes did not comply with various policies under the Postal Reorganization Act (PRA). The Postal Service contended that the service standard changes were part of a more extensive realignment plan previously submitted for PRC review in Docket No. N89-1. The Postal Service also did not consider that the service resulting from the changes was inconsistent with any policies of the PRA. In 2004 final testimony was submitted, and briefing was completed. The case is still pending.

12. LeMay v. United States Postal Service,
No. 05-4001 (W.D. Ark)

A private individual filed a lawsuit in federal district court in Texarkana, Arkansas, seeking class action status, against the Postal Service. In general the plaintiff alleged that the Postal Service failed to provide mailers of Priority Mail with the level of service that these mailers were led to believe they would receive when they paid Priority Mail rates for items weighing less than 13 ounces, and sent to destinations within three zones. The plaintiff raised four counts - three based on theories of contract and one based on state statute. The Postal Service filed a motion to dismiss, in lieu of an answer, and plaintiff opposed the motion. On August 9, 2005, the judge dismissed the complaint, concluding that the plaintiff's claims essentially were about postal services received and/or rates paid, and properly belonged before the PRC, not a federal district court. The plaintiff has filed an appeal to the U.S. Court of Appeals, Eighth Circuit.

13. Rulemakings

During 2005 the PRC either initiated or continued several Notice and Comment rulemaking proceedings to consider amendments to its Rules of Practice and Procedure. On January 16, 2004, the PRC proposed to incorporate into its rules (Docket No. RM2004-1) a definition of postal services (as distinguished from nonpostal services, over which it has no jurisdiction). The Postal Service did not oppose this initiative but suggested several refinements to the proposed definition. On March 5, 2004, the PRC proposed to expand the amount of information regarding nonpostal services that the Postal Service would need to submit when filing a request for recommendations on general changes in rates, fees, and classifications (Docket No. RM2003-2). The Postal Service opposed this proposal, instead taking the view that the amount of information regarding nonpostal services currently required by the PRC's rules is fully sufficient to allow PRC review and evaluation of proposed postal rates, fee, and classification changes. Initial and reply comments from interested parties have been submitted in both dockets, which are currently pending.