Senator Charles Schumer (D-NY) has asked the Postal Regulatory Commission to reject a proposed Negotiated Service Agreement between the US Postal Service and Valassis. Newspapers have been conducting a coordinated editorial campaign against the NSA, claiming it undercuts one of their prime sources of advertising revenue.
From Schumer’s letter to the PRC:
This proposal would allow Valassis to compete for the same business newspapers provide through their total market coverage programs at a subsidized rate. The Newspaper Association of America contends that this could cause the loss of $1 B in annual revenues for the newspaper industry nationwide.
I would strongly urge the Postal Regulatory Commission to reject the proposed Negotiated Service Agreement with Valassis at least until such time as the Postal Service can show clear and convincing evidence the deal will not violate the legal requirements that NSAs not cause unreasonable harm in the marketplace and also not result in a net revenue loss to the Postal Service. It is clear that insufficient analysis was conducted by the Postal Service on either of these points.