NAA Files Brief in Suit against the Postal Regulatory Commission: On behalf of its member newspapers, the Newspaper Association of America filed its initial brief today in its lawsuit against the Postal Regulatory Commission regarding that agency’s August 2012 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 NSA, USPS 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 U.S. 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.
