Newspapers Seek to Bust USPS Pact with Valassis

WASHINGTON, DC—The Newspaper Association of America (NAA) has filed for an emergency injunction against the $107 million contract the U.S. Postal Service (USPS) signed with Valassis Inc. of Livonia, MI. The trade association wants to block the three-year deal pending a full judicial review.

The contract calls for discounts of around 20 percent for Valassis if it sends out at least one million extra advertising mail pieces a year for national retailers beyond its existing advertising mail campaigns, Post & Parcel reported. The NAA claims the USPS is giving unfair assistance to Valassis to take advertising that newspapers currently mail out.

But while the Postal Regulatory Commission (PRC) approved the contract, the public representative appointed by the PRC later said the Commission “misapplied antitrust principles,” in approving the deal.

According to Post & Parcel, the Valassis deal with USPS requires the firm to mail at least a million extra pieces each 12 months of its three-year deal. The newspaper industry believes the discount advantage provided to Valassis would actually amount to more than 400 million extra direct mail items per year.

  • Paul

    In order for the USPS to improve it’s "bottom line", be competitive and grow, why can’t it use the same tools as private industry. If we ever expect the USPS to fix it’s financial difficulties, we have to be willing to allow it the tools that other delivery services like UPS or Fed Express utilize. Our firm has ‘volume discounts" with those delivery companies, why not the USPS.
    M&M Associates
    New York, New York