New ‘excessive’ postal rates are a threat to publishers and newspapers, according to America’s News Media Alliance.
The publishers’ group says small business mailers including newspapers would be harmed by the United States Postal Service’s latest round of postage increases, some of which are “seven times the rate of inflation”.
Periodical mail, used by local newspapers across the country, will see an average rate increase of more than eight per cent. “These new rates – on top of rates increased earlier in the year – will push mail out of the system and, in some cases, may put companies out of business,” president and chief executive David Chavern says.
The new rates follow a 2020 decision by the Postal Regulatory Commission that overturned a Congressionally-mandated price cap for mail products that USPS has a monopoly on delivering.
“These excessive rates not only threaten publishers and newspapers throughout the country, but they are being introduced at one of the worst times for small businesses that are struggling to recover from the economic impact of the COVID-19 pandemic,” says Chavern.
“The Alliance is deeply concerned that these rates will force small market, rural and minority-owned newspapers to cut back on distribution, leaving their communities less well-informed.”
He urges Congress to “hit the pause button” until following a more up-to-date evaluation of the need for and potential impact of the increases.