Tag Archive for 'USPS Compliance'

Mailers prepare for January 4, 2010 – with much at stake today.

As the new Global Portfolio Director for Communications Intelligence, I am continuously impressed by the way you, our customers, juggle corporate demands with the communication needs of customers and prospects. Having joined Pitney Bowes Business Insight from the industry, I can certainly relate!

On top of that, together we must also support a broad range of USPS initiatives designed to improve the overall flow of mail. Recently, postal officials announced their long-awaited plan on how they will be dealing with move update compliance.

Undeliverable mail costs the US Postal Service over $1.6 Billion a year, and mailers who contribute to this problem will soon be expected to pick up more of the tab.

Postal officials have implemented a new Performance Based Verification system to monitor compliance with the Move Update standards that took effect back in November 2008.  The verification processes utilizes the PostalOne! and MERLIN systems to evaluate whether mailers have updated and changed addresses according to postal rules.

I wanted to take the opportunity to call your attention to January 4, 2010, the date on which this approach will be used at the point of mail acceptance to determine whether additional postage is required. Mailers who wish to avoid these unexpected costs must be able to certify that their mail was prepared using an approved Move Update method-but the time to act is now.  (To learn more about solutions, tips, webinars and resources, visit our move verification page.)

You should also read the new PBBI white paper-The Truth About Move Update- which recaps the new standards, details the penalties you may expect, and provides insights into the impact that effective address change management can have on your organization.  When you download this paper today, you can learn about best-in-class solutions and the next steps necessary to ensure there are no surprises down the road. 

At Pitney Bowes Business Insight, my team and I will be here to provide the up-to-date news, practical tips and strategies, and cost-effective technologies you need to meet the demands of your company, customers and postal compliance.  I am glad to be the newest addition to the team and look forward to meeting and serving you in the months ahead.

Postal inspectors targeting business mailers

At our user’s conference in June, a number of mailers mentioned that they had recently been contacted by USPS postal inspectors. The topic of these conversations quickly turned to compliance, and agents wanted to review how these companies met USPS move update and address quality requirements.

This initiative was also described in a new white paper from Venable, one of the top business law firms in the U.S.  Venable reports that the Postal Service is looking to collect more postage on mail that has already been delivered by identifying violations of Move Update requirements. In certain cases, investigators “seek evidence that the mailer entered improper mailings knowingly or intentionally,” actions that could trigger a costly claim under the False Claims Act. 

Some mailers welcome this action. After all, if you are going through the effort to comply with USPS requirements while others are taking the discounts without doing all of the work, what’s fair is fair.

Other mailers are concerned.  Even if there is no malicious intent, some companies simply do not do a great job with move update compliance-and a postal audit could result in penalties.

All mailers should be prepared.  Your company could be targeted for an inspection simply because you receive returned mail (which narrows it down to everyone).  First of all, you need to make sure your mail processing teams understand the USPS requirements.  Secondly, that you adhere to these requirements on every mailing-and document your processes.  And, just as important, that you take steps to close the loop and update records once you’ve been advised of an address change.  (To learn more, feel free to contact your Pitney Bowes representative.)

If you are contacted by a postal inspector, you should treat this inquiry seriously.  As postal inspectors are federal law enforcement agents, you should contact you corporate counsel immediately.  The potential financial exposure for a national mailer could easily be in the millions.