NAA files brief challenging U.S. Postal Service policy
A new U.S. Postal Service policy encourages companies to remove their advertising inserts from newspapers.
On behalf of its member newspapers, the Newspaper Association of America has filed the initial brief in its lawsuit against the Postal Regulatory Commission regarding the agency's decision to approve a negotiated service agreement between the U.S. Postal Service and Valassis Direct Mail. The lawsuit is being heard in the U.S. Court of Appeals for the District of Columbia Circuit.
Under the agreement, the postal service granted Valassis Direct Mail discounts of 20 percent to 34 percent on new mail pieces containing advertising from national retailers of durable and semi-durable goods. Through these discounts, the postal service -- a governmental enterprise -- has given one company a price incentive to move advertising inserts out of newspapers delivered to consumers' homes. Advertising inserts comprise a critical revenue stream that supports the original reporting done by local newspapers in service to their communities.
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