Content of Periodicals Mail, 41989-41991 [2010-17459]

Agencies

• Postal Service

[Federal Register Volume 75, Number 138 (Tuesday, July 20, 2010)]
[Rules and Regulations]
[Pages 41989-41991]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-17459]


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POSTAL SERVICE

39 CFR Part 111


Content of Periodicals Mail

AGENCY: Postal ServiceTM.

ACTION: Final rule.

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SUMMARY: The Postal Service is revising Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM[supreg]) 707.3, to 
update present ``content requirements'' on materials eligible for 
mailing at Periodicals prices with authorized Periodicals publications.

DATES: Effective September 7, 2010.

FOR FURTHER INFORMATION CONTACT: Jerry Lease, 202-268-7264.

SUPPLEMENTARY INFORMATION: After discussions with the Periodicals 
mailing industry, the Postal Service agreed to review the standards 
governing contents of Periodicals mail, and decided to update several 
standards. This rule removes the current advertising limitation on 
loose supplements, except for unwrapped copies of loose addressed 
supplements included in a mailing for an authorized Periodicals 
publication. The final rule also revises the regulations on pages, 
specifically multi-layer pages, giving publishers more latitude in page 
design. The provisions concerning the mailing of products and product 
samples have been updated and simplified. Finally, the standards 
governing protective covers and attachments have been updated for 
consistency with past rulings. This final rule contains only those DMM 
revisions that are consistent with the expressed wishes of numerous 
publishers and Periodicals association representatives.

Background

    In the 1980s, and again in the 1990s, the Postal Service undertook 
extensive reviews of the standards governing what could be mailed as 
part of a periodical publication at Periodicals prices (formerly 
second-class rates). Advances in technology, and difficulty in applying 
the standards, were key underlying factors in those reviews. On March 
27, 1995, the Postal Service published a final rule in the Federal 
Register (60 FR 10021-10029) revising the standards.
    Since that time, the standards governing contents of a publication 
eligible for Periodicals prices have not changed, except for several 
minor modifications. There has been no discernable undesired movement 
of printed advertising materials, or other matter, from Standard Mail 
to Periodicals mail.
    The changes to the standards reflected in this final rule 
concentrate on four areas of ``content'' provisions and mailpiece 
construction:
     DMM 707.3.3.1, Pages.
     DMM 707.3.3.5, Supplements.
     DMM 707.3.4.3, Products.
     DMM 707.3.5, Mailpiece Construction.
    [cir] Specifically DMM 3.5.4, Without Mailing Wrapper.
    [cir] and DMM 3.5.6, Cover page and Protective Cover.

Pages

    A basic requirement for all Periodicals publications is that they 
be comprised of ``printed sheets.'' In the March 27, 1995 rulemaking, 
however, the printed sheet requirement was relaxed to allow small 
amounts of ``fastening'' material, such as grommets, string, and rubber 
bands, used to assemble a page. The Postal Service concluded at that 
time allowing such materials was not a significant deviation from the 
``printed sheet'' rule because the changes were consistent with the 
existing practice of allowing Periodicals publications to be bound with 
staples, saddle stitching, or spiral binding.
    More recently, publishers have argued that the 1995 changes, 
although welcome, unduly limit creativity in designing publications 
that appeal to their readers and advertisers. These publishers also 
point out advances in technology that they are restricted from using 
such as the inclusion of sound devices and video as part of a printed 
page. Finally, they point out that private delivery companies do not 
impose similar restrictions on the delivery of their publications, nor 
are they prohibited from using such technologies in the newsstand 
editions of their publications.
    Accordingly, DMM 707.3.3.1a is revised to replace ``fastening'' 
with ``non-paper'' in the first sentence to permit non-paper materials 
other than fastening materials in the construction of a multilayer 
page. This change would allow additional creativity in page design. The 
sentence ``Not all elements that make up a multilayer page must be 
printed'' is added to 3.3.1a, for additional transparency. That 
sentence is currently incorporated in Customer Support Ruling (CSR) PS-
234, titled ``Multilayer pages in Periodicals Publications.'' Finally, 
the sentence ``In addition, multilayer pages may contain novel 
characteristics such as an LED display, a sound device, or battery 
operated movable parts'' is added to 3.3.1a, to allow publishers to 
take advantage of current technologies, within the boundaries of 
mailable versus nonmailable matter as described in DMM 601.
    In addition, it should be noted that publishers continue to be 
required to adhere to the mailing standards governing the Periodicals 
price category claimed.

Supplement

    Many publishers have considered the 25 percent nonadvertising 
standard for loose supplements to be burdensome, and inappropriate as a 
means of limiting advertising in Periodicals mail. It is often viewed 
as an unnecessary restriction on a publisher's ability to choose 
whether to place advertising matter in the host publication or 
accompanying loose supplement.
    Moreover, the existing standards are hard to apply. This problem 
exists for customers and postal personnel, as demonstrated by the 
numerous requests for guidance directed to the Pricing and 
Classification Service Center (PCSC) and headquarters Mailing Standards 
personnel concerning what is advertising or nonadvertising matter. 
Often, when supplements are produced by third parties, it becomes 
particularly difficult to make such judgments. Contracts must be 
reviewed to evaluate the relationship(s) between parties. Payment 
arrangements by outside parties for the advertising portion of 
supplements must be examined in determining whether the material 
qualifies as nonadvertising matter.
    The Postal Service agrees with many publishers and their 
association representatives that the 25 percent nonadvertising 
requirement should be

[[Page 41990]]

eliminated except for separately addressed loose supplements mailed 
with the host publication outside a wrapper or polybag. The Postal 
Service is revising DMM 707.3.3.5 as follows:
     In the first sentence of 3.3.5a., the words ``on the front 
cover/page'' are added to ensure that the required ``Supplement to * * 
*'' endorsement is shown on the front of the supplement.
     The words ``contain at least 25% nonadvertising material 
and'' are deleted from the first sentence of 3.3.5a.
     The words ``must contain at least 25% nonadvertising 
material'' apply only to loose addressed supplements when a wrapper is 
not required.

Product Samples

    Product samples in Periodicals are not new. However, no explicit 
DMM standard acknowledges product samples are mailable at Periodicals 
prices. Mailability at Periodicals prices of product samples is 
achieved by ``altering'' a product, such as by changing the ingredients 
in fragrance samples, limiting significantly the size of a cosmetics 
sample, and requiring a disclaimer that the sample ``simulates'' or is 
a ``rendition'' of an actual product. Preparation guidelines are 
contained in Customer Support Ruling (CSR) PS-273. However, the Postal 
Service finds these guidelines difficult to administer, with 
documentation and verification of compliance burdensome on publishers 
and postal personnel alike.
    In earlier rulemakings, the Postal Service expressed the view that 
applying the general requirement that all Periodicals publications must 
be formed of printed sheets is a sufficient standard to limit the 
inappropriate mailing of products and products samples at Periodicals 
prices (see DMM 707.4.5). Changes to the standards described in this 
rule will continue to exclude products such as stationery, cassettes, 
floppy disks, DVDs, CDs, and similar media, since they are not printed 
sheets.
    But specifically allowing de minimis product samples will reduce 
the burden of the current guidelines. Consequently, and consistent with 
requests by many Periodicals publishers and Periodicals association 
representatives, the Postal Service has adopted a new provision in the 
DMM allowing product samples in de minimis form to be included as part 
of a printed sheet. This change will enhance both the value of some 
advertisements to the reader, and the overall value of the publication 
to the reader. Although not explicitly required, including the name of 
the host publication and the issue or issue date on the sample, and 
relating the sample to advertising or nonadvertising within the content 
of the host publication, will provide further support that the piece is 
properly prepared as a printed page (or a portion of a multilayer page) 
in the publication.
    Product samples may not be included in a Periodicals publication 
mailed at letter-sized prices. The combined weight of product samples 
in an issue of a Periodicals publication cannot exceed 3.3 ounces. Any 
product sample that is a ``packet'' is limited to a weight of no more 
than one ounce with a burst strength minimum of 3,000 pounds per square 
inch (PSI). Attachable product samples, including packets weighing no 
more than one ounce, may not be affixed to either the front or back 
cover page of a Periodicals publication, or permissible component of a 
Periodicals publication, even if the publication is enclosed in a 
wrapper. Placement of attachable product samples must conform to 
machinability and uniform thickness standards, and must be placed no 
closer than \3/4\ inch of any open edge of any interior page.
    Publishers are aware that in an environment of ever-increasing 
automated processing by the Postal Service of all types of mail 
including letters, flats, and parcels, it is critical that Periodicals 
publications not impede postal processing or damage postal processing 
equipment. Accordingly, it is reemphasized that any mailpiece to which 
a product sample is added under this new provision must meet the 
standards for physical characteristics related to basic mailability and 
to the eligibility for the specific postage prices claimed. In 
addition, all of the mailability restrictions and prohibitions in DMM 
601 apply. See specifically DMM 601.2.1, Packaging, and 601.10.5, 
Mailer Responsibility for Mailing Hazardous Materials.

Products

    Under impermissible mailpiece components, ``products'' are 
redefined to update the examples of impermissible products in 
Periodicals.
    The Postal Service adopts the following changes to Mailing 
Standards of the United States Postal Service, Domestic Mail Manual 
(DMM), incorporated by reference in the Code of Federal Regulations. 
See 39 CFR 111.1.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.


0
Accordingly, 39 CFR Part 111 is amended as follows:

PART 111--[AMENDED]

0
1. The authority citation for 39 CFR Part 111 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 13 U.S.C. 301-307; 18 U.S.C. 1692-
1737; 39 U.S.C. 101, 401, 403, 404, 414, 416, 3001-3011, 3201-3219, 
3403-3406, 3621, 3622, 3626, 3632, 3633, and 5001.


0
2. Revise the following sections of Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM) as follows:

Mailing Standards of the United States Postal Service, Domestic Mail 
Manual (DMM)

* * * * *

700 Special Standards

* * * * *

707 Periodicals

* * * * *

3.0 Physical Characteristics and Content Eligibility

* * * * *
3.3 Permissible Mailpiece Components
3.3.1 Pages
    * * * Pages are also subject to these standards:

[Revise 3.3.1a. to replace ``fastening'' with ``non-paper'' materials 
in the first sentence and to include new language to further describe a 
multilayer page as follows:]

    a. Multilayer pages (including pages formed by sheets glued 
together and pages that have unusual shapes, such as cutouts, movable 
flaps, or ``pop-ups'') may include small amounts of non-paper material 
such as grommets, string, or rubber bands as needed to assemble the 
page. Not all elements that make up a multilayer page must be printed. 
In addition, multilayer pages may contain novel characteristics such as 
an LED display, a sound device, or battery operated movable parts. 
Multilayer pages may also be formed as pouches or pockets, but may 
contain only permissible loose enclosures (see 3.3.4) or other securely 
affixed permissible components.
* * * * *
3.3.5 Supplement
    * * * Supplements are also subject to these conditions as 
applicable:
[Revise 3.3.5a. to make clear that the required supplement endorsement 
must be shown on the front/cover page. In addition, the requirement 
that a supplement to a bound Periodicals publication contain at least 
25% nonadvertising is eliminated except for unwrapped loose 
supplements.]


[[Page 41991]]


    a. A loose supplement to a bound Periodicals publication must bear 
on the front/cover page the endorsement ``Supplement to'' followed by 
one of the following: the title of the publication, the name of the 
publisher, or ``Periodicals Publication.'' A bound publication with one 
or more supplements must be enclosed in a wrapper. However, a wrapper 
is not required when a loose supplement is included within the same 
mailing as the host publication, bears a proper delivery address, 
contains at least 25% nonadvertising material, and includes on the 
front/cover page the endorsement ``Periodicals Supplement to'' followed 
by the exact title and issue date of the host publication. The external 
dimensions of such unwrapped supplements may exceed those of the host 
publication provided they are of the same processing category as the 
host publication. If a supplement to a bound publication is formed of 
more than one sheet, all sheets making up the supplement must be bound 
together.
* * * * *
[Renumber current 3.3.9 and 3.3.10 as 3.3.10 and 3.3.11 accordingly, 
and add new 3.3.9 to provide for ``product samples'' in Periodicals 
publications as follows:]
3.3.9 Product Samples
    Subject to the requirements in 3.3.1 and 3.4.5, product samples: 
Related to print advertising in the issue and are not offered for sale 
within the meaning of 3.4.2a and 3.4.3 may be included in a Periodicals 
publication as a page, or part of a multilayer page. Examples include, 
but are not limited to, a swatch of cloth; a paper towel as part of a 
printed page, or printed paper towel; a band-aid; and fragrance, 
cosmetics, lotions, or eatables in packet form. The combined weight of 
product samples in an issue is limited to 3.3 ounces. Any product 
sample in the form of a packet is limited in total weight to no more 
than one ounce, but does not include the page weight upon which the 
packet is affixed. Packet product samples also must have a minimum 
burst strength of 3,000 pounds per square inch (psi). Travel size and 
similar small products in commercially available form or packaging do 
not qualify as permissible product samples, even if less than 3.3 
ounces. In addition, CDs, DVDs, and similar media do not qualify as 
permissible product samples. Permissible product samples:
    a. Are not eligible with letter-size pieces;
    b. Must comply with hazmat standards (601.10.5);
    c. Must comply with machinability standards, e.g. uniform thickness 
(301.1.4);
    d. Must not be attached to the front or back cover page of the host 
Periodicals publication, or any other permissible component;
    e. Must be secured in place (spine or tip-on interior page) to 
prevent shifting (601.2.1); and,
    f. Must be placed at least \3/4\ inch from all non-bound edges of 
any interior page.
* * * * *
3.4 Impermissible Mailpiece Components
* * * * *
3.4.3 Products
[Revise 3.4.3 to update examples of impermissible ``products'' in 
Periodicals publications as follows:]

    Except as provided for in 3.3.9, products may not be mailed at 
Periodicals prices. Examples include stationery (such as pads of paper 
or blank printed forms); cassettes; floppy disks; CDs; DVDs; 
merchandise, including travel-size merchandise in commercially 
available form or packaging; and wall, desk, and blank calendars. 
Printed pages, including oversized pages and calendars, are not 
considered products if they are not offered for sale.
* * * * *
3.5 Mailpiece Construction
* * * * *
3.5.4 Without Mailing Wrapper
[Revise the last sentence of 3.5.4 to allow for \3/4\ inch clearance of 
any open edge on attachments to a Periodicals publication as follows:]

    When the mailpiece does not have a mailing wrapper, all the 
components of an unbound publication must be combined with and inserted 
inside the publication. Only enclosures mailable at Periodicals prices 
under 3.3.4 may be included loose inside a bound unwrapped publication. 
An enclosure under 3.3.3c, Enclosures at First-Class Mail or Standard 
Mail Prices, or 3.3.4, Loose Enclosures at Periodicals Prices, or a 
single sheet prepared as an attachment under 3.3.8c, may be securely 
attached along the bound edge on the outside of an unwrapped 
publication if it does not exceed any dimension of the cover of the 
publication and comes within \3/4\ inch of any open edge.
* * * * *
3.5.6 Cover Page and Protective Cover
[Revise the first sentence of 3.5.6 to allow for \3/4\ inch clearance 
of any open edge on a protective cover to a Periodicals publication as 
follows:]

    If the piece is not completely enclosed in a mailing wrapper, then 
any protective cover or cover page must cover both the front and back 
of the host publication and extend to within at least \3/4\ inch of any 
open edge. Exception: Flat-size pieces may have short covers as 
provided in 301.3.5.2. If the host publication is bound, the protective 
cover must be permanently attached to the publication.
* * * * *
    We will publish an appropriate amendment to 39 CFR Part 111 to 
reflect these changes.

Neva R. Watson,
Attorney, Legislative.
[FR Doc. 2010-17459 Filed 7-19-10; 8:45 am]
BILLING CODE 7710-12-P