Complaint Proceeding, 76874-76878 [2024-21271]
Download as PDF
lotter on DSK11XQN23PROD with NOTICES1
76874
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Notices
Contract 335 to Competitive Product
List and Notice of Filing Materials
Under Seal; Filing Acceptance Date:
September 13, 2024; Filing Authority: 39
U.S.C. 3642, 39 CFR 3040.130 through
3040.135, and 39 CFR 3035.105; Public
Representative: Jana Slovinska;
Comments Due: September 23, 2024.
4. Docket No(s).: MC2024–679 and
CP2024–688; Filing Title: USPS Request
to Add Priority Mail Express, Priority
Mail & USPS Ground Advantage
Contract 336 to Competitive Product
List and Notice of Filing Materials
Under Seal; Filing Acceptance Date:
September 13, 2024; Filing Authority: 39
U.S.C. 3642, 39 CFR 3040.130 through
3040.135, and 39 CFR 3035.105; Public
Representative: Arif Hafiz; Comments
Due: September 23, 2024.
5. Docket No(s).: MC2024–680 and
CP2024–689; Filing Title: USPS Request
to Add Priority Mail Express, Priority
Mail & USPS Ground Advantage
Contract 337 to Competitive Product
List and Notice of Filing Materials
Under Seal; Filing Acceptance Date:
September 13, 2024; Filing Authority: 39
U.S.C. 3642, 39 CFR 3040.130 through
3040.135, and 39 CFR 3035.105; Public
Representative: Christopher C. Mohr;
Comments Due: September 23, 2024.
6. Docket No(s).: MC2024–681 and
CP2024–690; Filing Title: USPS Request
to Add Priority Mail Express, Priority
Mail & USPS Ground Advantage
Contract 338 to Competitive Product
List and Notice of Filing Materials
Under Seal; Filing Acceptance Date:
September 13, 2024; Filing Authority: 39
U.S.C. 3642, 39 CFR 3040.130 through
3040.135, and 39 CFR 3035.105; Public
Representative: Almaroof Agoro;
Comments Due: September 23, 2024.
7. Docket No(s).: MC2024–682 and
CP2024–691; Filing Title: USPS Request
to Add Priority Mail & USPS Ground
Advantage Contract 349 to Competitive
Product List and Notice of Filing
Materials Under Seal; Filing Acceptance
Date: September 13, 2024; Filing
Authority: 39 U.S.C. 3642, 39 CFR
3040.130 through 3040.135, and 39 CFR
3035.105; Public Representative:
Samuel Robinson; Comments Due:
September 23, 2024.
8. Docket No(s).: MC2024–683 and
CP2024–692; Filing Title: USPS Request
to Add Priority Mail Express, Priority
Mail & USPS Ground Advantage
Contract 339 to Competitive Product
List and Notice of Filing Materials
Under Seal; Filing Acceptance Date:
September 13, 2024; Filing Authority: 39
U.S.C. 3642, 39 CFR 3040.130 through
3040.135, and 39 CFR 3035.105; Public
Representative: Gregory S. Stanton;
Comments Due: September 23, 2024.
VerDate Sep<11>2014
16:59 Sep 18, 2024
Jkt 262001
This Notice will be published in the
Federal Register.
Erica A. Barker,
Secretary.
[FR Doc. 2024–21458 Filed 9–18–24; 8:45 am]
BILLING CODE 7710–FW–P
POSTAL REGULATORY COMMISSION
[Docket No. C2024–13; Order No. 7507]
Complaint Proceeding
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is
appointing a Presiding Officer to
represent the interests of the general
public and provide a public written
intermediate decision including
findings of fact and conclusions of law
on the issues raised in this proceeding.
ADDRESSES: Submit notices of
intervention electronically via the
Commission’s Filing Online system at
https://www.prc.gov. Persons interested
in intervening who cannot submit their
views electronically should contact the
person identified in the FOR FURTHER
INFORMATION CONTACT: David A. Trissell,
General Counsel, at 202–789–6820.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Table of Contents
I. Introduction
II. Background
III. Commission Analysis
IV. Ordering Paragraphs
I. Introduction
On June 17, 2024, Sai and Fiat
Fiendum, Inc. (Complainants) filed a
complaint with the Commission
regarding the Postal Service’s treatment
of mail items for the blind (blind mail).1
On July 8, 2024, the Postal Service filed
its Motion to Dismiss. In response,
Complainants filed their ‘‘[m]otion for
summary elevation, or extension and
contingent withdrawal, and
clarification,’’ requesting, amongst other
relief, that the Commission extend the
deadline to respond to the Motion to
Dismiss.2 The Commission granted this
1 Complaint regarding blind mail, June 17, 2024
(Complaint). In its motion to dismiss, the Postal
Service asserts that because complaints must only
be brought on the part of interested persons and
because the Complaint fails to identify the nature
of ‘‘Fiat Fiendum, Inc.,’’ the Complaint should be
dismissed as it relates to that party. United States
Postal Service’s Motion to Dismiss, July 8, 2024, at
1 n.1 (Motion to Dismiss). As the resolution of this
issue has no impact on the disposition of the
Complaint, the Commission will decline to reach
the merits of this question.
2 See Motion for summary elevation, or extension
and contingent withdrawal, and clarification, July
12, 2024, at 5–9 (Motion for Extension). In addition
to the seeking an extension, Complainants
PO 00000
Frm 00089
Fmt 4703
Sfmt 4703
extension. On August 5, 2024,
Complainants filed their opposition.3
For the reasons explained below, the
Commission concludes that the
Complaint raises an issue of material
fact as to whether the Postal Service has
violated 39 U.S.C. 403(c) in its treatment
of blind mail for international mailers.
The Commission determines that
Complainants’ remaining claims should
be dismissed for a lack of jurisdiction
due to Complainants’ failure to state a
claim for which relief can be granted.
II. Background
Complainant Sai is a blind American
citizen living in the United Kingdom
who is the President of Fiat Fiendum,
Inc., the other named Complainant.
Complaint at 3. Complainants explain
that the Universal Postal Convention
(UPC), to which the United States is a
party, mandates that the international
mailing of certain items for the blind be
free. Id. Complainants allege that the
Postal Service has abdicated its
responsibilities under the UPC by
putting unlawful conditions on the free
mailing of items for the blind, thus
violating international law as well as
human rights law, anti-discrimination
statutes, and the U.S. Constitution. See,
e.g., Complaint at 11–21.
Complainants provide several
examples of the manner in which the
Postal Service is restricting the scope of
free blind mail and describes how these
restrictions harm blind mailers who,
like them, need items shipped overseas.
Complaint at 11–14. For instance,
Complainants explain that a common
item used by blind individuals is ‘‘a
brailler—a specialized typewriter . . .
that outputs braille embossing rather
than ink.’’ Id. at 11. Complainants
explain that this item is essential for
blind individuals and is often only
available from one U.S.-based company
worldwide. Id. at 11–12. Complainants
assert, however, that because of the size
of these braillers, the Postal Service
refuses to ship these items as free blind
mail, in violation of UPC rules. Id.
According to Complainants, ‘‘it is cost
prohibitive to mail this internationally
without blind mail,’’ particularly
considering that blind people ‘‘are often
quite poor’’ and cannot rely on
requested: (1) ‘‘summary elevation to a full
proceeding under § 3022.30(a)(1) & Part 3010
Subpart F[;]’’ (2) conditional withdrawal of the
Complaint should Complainants fail to file an
opposition to the Motion to Dismiss; and (3)
clarification of which rules apply to Commission
proceedings. See Motion for Extension at 4, 9, 10–
12. The Commission denies these requests as moot.
3 See Notice re opposition to motion to dismiss,
August 5, 2024 (Opposition). Both parties also filed
a number of other documents not directly relevant
to the issues in question here.
E:\FR\FM\19SEN1.SGM
19SEN1
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Notices
lotter on DSK11XQN23PROD with NOTICES1
economies of scale. Id. at 12.
Complainants request that the
Commission initiate proceedings,
including a public hearing and
settlement negotiations, that would
ultimately lead to regulatory
amendments to the International Mail
Manual (IMM) and Domestic Mail
Manual (DMM). Id. at 32–41.
In its Motion to Dismiss, the Postal
Service classifies Complainants’
allegations as four separate claims,
summarized as follows: (1) a claim
asserting that the Postal Service
improperly failed to categorize blind
mail as a standalone class of mail; (2) a
claim that the Postal Service’s treatment
of blind mail violates international
treaty law; (3) a claim that the Postal
Service discriminates against customers
with blindness in violation of the
Rehabilitation Act and 39 U.S.C. 403(c);
and (4) a claim that the Postal Service
has committed Constitutional
violations. Motion to Dismiss at 1–2.
According to the Postal Service, the
international treaty, discrimination, and
Constitutional claims should be
dismissed because they do not fall
within the Commission’s jurisdiction.
Id. at 4–14, 17–20.4 The Postal Service
states that the claim relating to mail
classification fails because both logic
and Congressional intent suggest that
blind mail need not be its own class. Id.
at 20–22.
Complainants respond that the
Complaint provides adequate legal and
factual grounds to deny the Motion to
Dismiss.5 Complainants also argue that
the Postal Service has refused to confer
with them and that such a referral
should result in sanctions against the
Postal Service.6
4 The Postal Service also states that Complainants
have no private right of action under the UPC. Id.
at 14–17.
5 Opposition at 1, 3. Complainants also argue that
the Postal Service’s arguments for dismissal rely on
Rule 12 of the Federal Rules of Civil Procedure (and
related caselaw), which does not apply to
Commission proceedings. See Opposition at 1–2;
see also Motion for Extension at 11–12. The
Commission does not interpret the Postal Service’s
arguments as relying on Fed. R. Civ. P. 12 and any
caselaw cited within the Motion to Dismiss appears
to be for purposes of persuasive analogy.
Nevertheless, the Commission’s conclusions in the
analysis that follows do not rely on Fed. R. Civ. P.
12.
6 See Opposition at 3; see also Complaint at 9;
Motion for Extension at 5–9. The Commission notes
that the meet-and-confer requirement is an
obligation that applies only to a complaint and a
subsequent answer and does not apply to motions
to dismiss or subsequent pleadings. See 39 CFR
3022.10(9), 3022.12, and 3022.14. Because the
Postal Service has not yet filed an answer in the
current docket, the meet-and-confer requirement
does not apply to the Postal Service at this time.
VerDate Sep<11>2014
16:59 Sep 18, 2024
Jkt 262001
III. Commission Analysis
At present, the determinative issue is
whether the Complaint raises genuine
issues of material fact or law within the
Commission’s jurisdiction. The
Commission has jurisdiction over
complaints that meet the statutory
requirements of 39 U.S.C. 3662(a).
Within 90 days after receiving a
complaint under section 3662(a), the
Commission must either (1) begin
proceedings on the complaint upon
finding that such complaint raises
material issues of fact or law; or (2)
issue an order dismissing the
complaint.7 The Commission must issue
a written statement setting forth the
bases of its determination. 39 U.S.C.
3662(b)(1)(B).
Section 3662(a) permits any interested
person to file a complaint with the
Commission if they believe the Postal
Service is not operating in conformance
with the requirements of 39 U.S.C.
chapter 36; 39 U.S.C. 101(d), 401(2),
403(c), 404a, or 601; or any regulations
promulgated under any of those
provisions.8 In turn: section 101(d)
requires postal rates to be established to
apportion the costs of all postal
operations to mail users on a fair and
equitable basis; section 401(2) permits
the Postal Service to adopt, amend, and
repeal rules and regulations not
inconsistent with title 39 as may be
necessary to execute its functions under
title 39 ‘‘and such other functions as
may be assigned to the Postal Service
under any provisions of law outside of’’
title 39; section 403(c) prohibits the
Postal Service, except as specifically
authorized under title 39, from making
any undue or unreasonable
discrimination among mail users when
providing services and establishing
classifications, rates, and fees until title
39, as well as granting any undue or
unreasonable preferences to any mail
user; section 404a, except as specifically
authorized by law, prohibits the Postal
Service from establishing rules or
regulations that create unfair
competition; compel the disclosure,
transfer, or licensing of intellectual
property to any third party; and offer
services based on confidential
information, without consent, unless
substantially the same information is
obtainable from an independent source;
section 601 governs the carriage of
letters out of the mails.
Chapter 36 contains provisions in title
39 relating to rates, classes, and
7 39
8 39
PO 00000
U.S.C. 3662(b)(1)(A); see 39 CFR 3022.30(a).
U.S.C. 3662(a); see 39 CFR 3022.2.
Frm 00090
Fmt 4703
Sfmt 4703
76875
services.9 The Commission has
consistently held that its complaint
jurisdiction is limited to complaints
filed against the Postal Service that
involve alleged violations of these five
specific sections (or subsections) of title
39 or the provisions contained in
chapter 36.10 Lacking jurisdiction over a
given complaint, the Commission must
dismiss the complaint.11
A. As a Matter of Law, the Postal Service
Has No Obligation To Create a
Standalone Class for Blind Mail
Complainants allege that the Postal
Service has ‘‘illegally’’ failed to classify
blind mail as a separate and distinct
class of mail. Complaint at 15. In
response, the Postal Service asserts that
this allegation fails to state a claim on
which relief can be granted. Motion to
Dismiss at 20. The Postal Service argues
that the purpose of ‘‘classes’’ in the
pricing system is to administer the price
cap for market dominant products and
that, because blind mail is shipped free,
it is illogical to treat it as a separate
class. Id. Indeed, the Postal Service
explains that splitting blind mail into a
distinct class would make it difficult for
Congress to reimburse the Postal Service
because the easiest way to calculate
reimbursement is ‘‘through reference to
published rates, which are themselves
subject to the applicable price cap of the
underlying analog class.’’ Id. at 20–21.
Further, the Postal Service notes that
Congress did not see fit to designate
blind mail as a separate product offering
in its initial regulatory structure. Id. at
21.
The Commission agrees that
Complainants have failed to state a
claim entitling them to relief. Though
Complainants assert that the Postal
Service must categorize blind mail as its
own mail class, they do not identify any
statute or regulation requiring such
categorization. See Complaint at 15. As
such, Complainants fail to affirmatively
allege that ‘‘the Postal Service is not
operating in conformance with the
requirements of the provisions of
sections 101(d), 401(2), 403(c), 404a, or
601, or [chapter 39] (or regulations
promulgated under any of those
provisions),’’ as required to state a claim
under section 3662(a). As such, the
9 Docket No. C2023–1, Order Granting Motion
and Dismissing Complaint with Prejudice, January
24, 2023, at 5–6 (Order No. 6428).
10 Docket No. C2015–3, Order Dismissing
Complaint, August 26, 2015, at 15–16 (Order No.
2687); Docket No. C2015–2, Order Granting Motion
to Dismiss, July 15, 2015, at 15 (Order No. 2585).
11 See, e.g., Order No. 6428 at 6; Docket No.
C2015–1, Order Granting Motion to Dismiss, March
4, 2015, at 6–7 (Order No. 2377).
E:\FR\FM\19SEN1.SGM
19SEN1
76876
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Notices
claim related to the classification of
blind mail must be dismissed.12
B. The Commission Does Not Have
Jurisdiction Over the UPC Claims and
the UPC Does Not Create a Private Right
of Action
lotter on DSK11XQN23PROD with NOTICES1
As explained above, Complainants
allege that the Postal Service’s treatment
of blind mail violates the UPC in
numerous ways (for instance, by
restricting its definition of who can
receive free blind mail to exclude
partially-sighted individuals, by
restricting the weight for free blind mail,
and by restricting free blind mail only
to reading material). See Complaint at
22–31. In response, the Postal Service
asserts that the Commission does not
have jurisdiction to hear allegations that
the Postal Service has violated
international treaty law and, moreover,
that the UPC does not create a private
right of action for alleged treaty
violations. Motion to Dismiss at 6.
Specifically, the Postal Service argues
that violations of the UPC do not fall
within the Commission’s jurisdiction
under section 401(2) (specifying that the
Postal Service may adopt rules ‘‘not
inconsistent with [title 39]’’) because the
UPC is not affirmatively codified in title
39; rather, the statutes related to blind
mail in title 39 are consistent with the
rules laid out in the IMM. Id. at 5–14.
The Postal Service is correct that
Complainants have not alleged any
violations of section 401(2) (or
otherwise) sufficient to raise
Commission jurisdiction over its UPC
Claims. As the Commission has
previously stated, a claim falls within
section 401(2) ‘‘only if the Postal
Service adopted, amended, or repealed
rules or regulations inconsistent with
title 39.’’ Order No. 2377 at 6. ‘‘Section
401(2) is not a ‘catch all’ provision over
which the Commission enjoys unlimited
jurisdiction pursuant to 39 U.S.C. []
3662(a).’’ 13 Here, Complainants alleged
that the Postal Service violated the
UPC—a separate and distinct set of rules
not captured by section 401(2). As such,
12 See, e.g., Order No. 6428 at 1 (dismissing
complaint on grounds that it fails to state a claim
for which relief can be granted). As mentioned
above, Complainants maintain that the Postal
Service’s arguments for dismissal rely on Fed. R.
Civ. P. 12 which, they assert, do not apply to
Commission proceedings. See Opposition at 4 n.11.
However, the Commission does not interpret the
Postal Service’s Motion to Dismiss as being based
upon that Rule and Complainants have failed to cite
any specific instances of such reliance.
13 Docket No. C2023–11, Order Granting Motion
to Dismiss in Part and Denying Motion for
Preliminary Injunction, December 19, 2023, at 10
(Order No. 6880).
VerDate Sep<11>2014
16:59 Sep 18, 2024
Jkt 262001
the Commission does not have
jurisdiction to hear the UPC claims.14
Even assuming for the sake of
argument that the Commission could
appropriately hear the UPC claims, they
would necessarily fail because the UPC
provides no private right of action for its
violation. Unless the text of an
international treaty explicitly states
otherwise, the presumption is that
‘‘international agreements, even those
directly benefiting private persons,
generally do not create private rights or
provide for a private cause of action in
domestic courts.’’ 15 Here, nothing in the
text of the UPC provides for a cause of
action in favor of private citizens. On
the contrary, as the Postal Service notes,
the Universal Postal Union (UPU)
instead contemplates resolution
disputes between countries (the parties
to the UPU itself).16 As such,
Complainants do not have the ability to
bring a cause of action to the
Commission for an alleged Postal
Service violation of the UPC.
C. The Discrimination and
Constitutional Claims Fail for Lack of
Jurisdiction
1. Constitutional Claims
Complainants assert that the Postal
Service is infringing on their First and
Fourth Amendment rights by
prohibiting free blind mail from
containing advertisements or being used
for ‘‘a profit-making transaction’’ and by
opening blind mail to determine its
eligibility. Complaint at 19–21. In
response, the Postal Service asserts that
nonconformance with the U.S.
Constitution is not a basis for
Commission jurisdiction under section
3662 and, as such, the Commission
lacks jurisdiction to hear the
Complainants’ Constitutional claims. As
previously discussed, the Postal Service
is correct in noting that Commission
jurisdiction is constrained to the five
14 This interpretation accords with prior
Commission precedent that the Department of State,
rather than the Commission, ‘‘is responsible for
interpreting international law generally and the
UPU Constitution and Acts specifically.’’ Docket
No. R2018–1, Order on Price Adjustments for FirstClass Mail, USPS Marketing Mail, Periodicals,
Package Services, and Special Services Products
and Related Mail Classification Changes, November
9, 2017, at 18 (Order No. 4215).
15 McKesson Corp. v. Islamic Republic of Iran,
539 F.3d 485, 489 (D.C. Cir. 2008) (internal
quotation marks omitted) (quoting Medellin v.
Texas, 552 U.S. 491, 506 n.3 (2008)).
16 See Motion to Dismiss at 15, n.52 (citing UPU
Constitution art. 3[2]; UPU General Regulations art.
154); see also Hye Ja Choi v. United States Postal
Serv., No. CV 18–00051 SOM/RLP, 2019 WL
1063363, at *4 (D. Haw. Mar. 6, 2019) (holding that,
under the Universal Postal Union’s Acts of
Congress, there is no private right of action for a
violation).
PO 00000
Frm 00091
Fmt 4703
Sfmt 4703
specific sections (or subsections) of title
39 enumerated in section 3662 and that
Constitutional violations are not
included therein.17 As such,
Complainants’ First and Fourth
Amendment claims must be dismissed.
2. Discrimination Claims
Complainants also assert that all of
their allegations constitute ‘‘human
rights and disability discrimination’’ in
violation of section 403(c) and the
Rehabilitation Act.18 However,
according to the Postal Service, the
Complainants’ allegations of disability
discrimination also fail for lack of
Commission jurisdiction. Motion to
Dismiss at 17. Specifically, the Postal
Service notes that the Complainants
bring their discrimination claims under
the Rehabilitation Act, but states that
the Commission has already held that
such claims are not proper under
section 3662(a). Id. at 17–18. Further,
the Postal Service asserts that
Complainants have not properly alleged
a claim of discrimination sufficient to
invoke jurisdiction under 39 U.S.C.
403(c). Id. at 18.
In terms of the Rehabilitation Act
claim, the Postal Service is correct that
the Commission does not have
jurisdiction to hear such claims. In
Docket No. C2023–11, the Commission
previously analyzed allegations that the
Postal Service had violated the
Rehabilitation Act by discriminating
against a postal user based on her
disability. See Order No. 6880 at 10. The
Commission noted that ‘‘the
Commission’s complaint jurisdiction is
limited to hearing allegations that the
Postal Service is not operating in
conformance with the requirements of
39 U.S.C. chapter 36’’ and that ‘‘claims
related to . . . discrimination
prohibited by 29 U.S.C. [] 701 et seq.
[the Rehabilitation Act] . . . are alleged
violations of statutes not specifically
enumerated in 39 U.S.C. [] 3662(a).’’ Id.
Therefore, the Commission dismissed
such claims. Id. Likewise, the
Commission does not have jurisdiction
to hear Complainants’ allegations that
17 See 39 U.S.C. 3662(a); see also City & Cnty. of
San Francisco v. U.S. Postal Serv., No. C 09–01964
JSW, 2009 WL 3756005, at *3 (N.D. Cal. Nov. 5,
2009) (noting that constitutional claims do not fall
under the Commission’s section 3662 jurisdiction);
Docket No. C2011–2, Order Addressing Complaint
and Authorizing Settlement Negotiations, August
16, 2011, at 3 (Order No. 808) (noting that federal
court retained constitutional claims while
dismissing regulatory issues as within the
Commission’s jurisdiction).
18 Complaint at 17. Complainants do not specify
what they mean by ‘‘human rights’’ or how they
differ from the discrimination claims under section
403(c). Therefore, the Commission will treat both
the human rights and discrimination claims as
allegations of violations of section 403(c).
E:\FR\FM\19SEN1.SGM
19SEN1
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Notices
the Postal Service violated the
Rehabilitation Act and thus such a
claim must be dismissed.
However, Complainants’
discrimination claim under 39 U.S.C.
403(c) must be analyzed differently.
Citing to the Commission’s decision in
Docket No. C2020–2, the Postal Service
correctly notes that in order to state a
claim for violation of 39 U.S.C. 403(c),
a complainant must allege that ‘‘(1) the
complainant is receiving less favorable
services than those provided to one or
more other postal customers, (2) the
complainant is similarly situated to
those postal customers receiving more
favorable service, and (3) there is no
rational or legitimate basis for denying
the complainant the more favorable
service currently being provided to
those similarly situated postal
customers.’’ Motion to Dismiss at 18
(citing Order No. 6880 at 13–14). In
turn, the Postal Service asserts that:
lotter on DSK11XQN23PROD with NOTICES1
the FMFTB regulations confer benefits in
favor of ‘blind and other handicapped
persons’ relative to the rest of the mailer
population. The allegation that Complainants
cannot send or receive advertisements free of
charge just like all other mail users
effectively defeats a section 403(c) claim
since Complainants admit that they are not
receiving less favorable services.
Id. n.66.
The Postal Service is correct that, had
Complainants alleged that blind mailers
are being discriminated against in
relation to the larger mailing population
as a whole, such a claim would
necessarily fail. However, taken in the
light most favorable to them,
Complainants’ allegations are instead
that blind mail users outside of the
United States are subject to less
favorable (i.e., more expensive) services
than those located inside the United
States (and that such treatment is
illegitimate). See Complaint at 11, 13.
For instance, the Complainants allege
that, based on the IMM, they were
prevented from using free blind mail to
send and receive repaired canes from
their U.S.-based manufacturer—a
service they would have been able to
take advantage of had they been located
in the United States. Id. at 11. Similarly,
they explain that if they ‘‘want
something new, unusual, or bespoke,
which [they] could get shipped to
[them] for free in the US (and which the
UPC requires be shipped to [them] for
free in the UK too), [they] can’t get it at
all (or not without layers of
intermediation, months of delay, and
substantially increased costs).’’ Id. at 13.
Therefore, Complainants have raised
plausible allegations that the Postal
Service has implemented rates that
VerDate Sep<11>2014
16:59 Sep 18, 2024
Jkt 262001
unfairly discriminate against foreign
blind mailers.19
This conclusion conforms with
previous Commission precedent. In
Docket No. R2018–1—a general Market
Dominant rate case—the Chamber of
Commerce argued that by setting
mailing rates lower for foreign mailers
than for American mailers, the Postal
Service was violating section 403(c) by
unreasonably discriminating against
American mailers.20 The Commission
determined that such concerns should
instead be brought ‘‘under section
3662(a) of title 39 of the United States
Code, which provides that any
interested person who believes that the
Postal Service is not operating in
conformance with section 403(c) may
lodge a complaint with the Commission
in such form or manner that the
Commission prescribes.’’ Order No.
4215 at 18. Here, Complainants have in
fact brought their claims that the Postal
Service is unfairly discriminating
against them based on country of
residence properly in a section 3662(a)
proceeding.
The Postal Service may very well
have a rational reason for treating
international mailers differently than
domestic mailers in terms of blind mail,
but that is a material issue of fact not
before the Commission on a motion to
dismiss. At this juncture, the Complaint
has raised a genuine issue of material
fact and law—namely, whether the
Postal Service’s treatment of blind mail
unreasonably discriminates against
foreign mailers in violation of section
403(c).21 As such, the Commission shall
19 The Postal Service does not appear to argue
that section 403(c) is inapplicable to issues of
international law. Indeed, the Postal Service has
previously stated that ‘‘39 U.S.C[.] 403(c), which
provides that rates may not be unduly or
unreasonably discriminatory or preferential,’’ is one
of the criteria ‘‘that govern the Postal Service’s
international rate setting authority.’’
Implementation of International Customized Mail
Service, 57 FR 30651–52, July 10, 1992. Similarly,
the Commission, in advising the Department of
State related to changes made to the Acts of the
UPU, previously explained that section 403(c)
would apply to rates that did not ‘‘fairly apportion
costs’’ and thus ‘‘grant preferences to . . . foreign
mailers’’ over domestic ones. Letter from Chairman
Dan G. Blair to Deputy Assistant Secretary Gerald
C. Anderson, June 30, 2008, at 2 (attached as exhibit
to Opposition).
20 Docket No. R2018–1, U.S. Chamber of
Commerce Comments on the United States Postal
Service Notice of Market-Dominant Price
Adjustment, October 26, 2017, at 2–11.
21 The Postal Service points out that significant
procedural issues are created when a complainant
submits multiple errata and addenda to their
original complaint, rather than file an amended
complaint. See United States Postal Service
Response to Complainants’ (1) Notice and Motion
Requesting Leave to File ‘‘Errata and Addenda’’ to
the Complaint and (2) Notice and Motion
Requesting Leave to File ‘‘Second Addendum, July
8, 2024, at 2–3 (Response to Motions for Leave). The
PO 00000
Frm 00092
Fmt 4703
Sfmt 4703
76877
begin proceedings on the Complaint.
See 39 U.S.C. 3662(b)(1)(A)(i). Pursuant
to 39 CFR 3022.12(b) and 3022.14, the
Postal Service is directed to file an
answer to Complainants’ Complaint,
‘‘Errata & Addenda,’’ and Second
Addendum (consolidated as one
superseding, amended complaint)
within 10 days of this Order.
Pursuant to 39 CFR 3010.106, the
Commission appoints Joseph K. Press to
serve as presiding officer to ascertain
the outstanding issues of material fact
and law in this matter. Parties may
request that the presiding officer obtain
specific discovery but may not
independently propound discovery. The
presiding officer shall examine the
disputed issues identified above and
provide a public, written intermediate
decision including findings of fact and
conclusions of law on the issues raised
in this proceeding. 39 CFR 3010.335.
Pursuant to 39 CFR 3022.30(c), John
Avila is designated as an officer of the
Commission (Public Representative) to
represent the interests of the general
public in this proceeding.
IV. Ordering Paragraphs
It is ordered:
1. The Commission finds that the
Complaint regarding blind mail, filed
June 17, 2024, raises material issues of
fact.
2. The United States Postal Service’s
Motion to Dismiss, filed July 8, 2024, is
granted on all grounds except for the
claim related to the alleged violation of
39 U.S.C. 403(c) as enumerated above.
3. Pursuant to 39 CFR 3022.12(b) and
3022.14, the Postal Service is directed to
file an answer to Complainants’
Complaint, ‘‘Errata & Addenda,’’ and
Second Addendum (consolidated as one
superseding, amended complaint)
within 10 days of this Order.
4. Pursuant to 39 CFR 3010.106, the
Commission appoints Joseph K. Press as
a presiding officer in this proceeding.
5. Parties may request that the
presiding officer obtain specific
discovery but may not independently
propound discovery.
Commission appreciates the Postal Service’s
position regarding this issue. Within the Response
to Motions for Leave, the Postal Service also states
that, should the Motion to Dismiss be denied, ‘‘the
Postal Service requests that the Commission require
that Complainants first seek the Commission’s leave
and, if granted, that all of the allegations and claims
from the original complaint, the Errata and
Addenda, the Second Addendum, and any new
matter be consolidated into a single, consolidated,
superseding, amended complaint.’’ Response to
Motions for Leave at 4. Accordingly, going forward
the Commission and all parties to this matter shall
treat the allegations made in the original complaint
and the subsequent errata and first and second
addenda as a consolidated, superseding, amended
complaint.
E:\FR\FM\19SEN1.SGM
19SEN1
76878
Federal Register / Vol. 89, No. 182 / Thursday, September 19, 2024 / Notices
6. Pursuant to 39 CFR 3022.30(c),
John Avila is designated as an officer of
the Commission (Public Representative)
to represent the interests of the general
public in this proceeding.
7. The presiding officer shall,
pursuant to 39 CFR 3010.335, provide a
public written intermediate decision
including findings of fact and
conclusions of law on the issues raised
in this proceeding.
8. The Secretary shall arrange for
publication of this order in the Federal
Register.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2024–21271 Filed 9–18–24; 8:45 am]
BILLING CODE 7710–FW–P
POSTAL SERVICE
Product Change—Priority Mail
Express, Priority Mail, and USPS
Ground Advantage® Negotiated
Service Agreement
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice:
September 19, 2024.
FOR FURTHER INFORMATION CONTACT:
Sean C. Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on September 4,
2024, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express, Priority Mail &
USPS Ground Advantage® Contract 292
to Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2024–611, CP2024–619.
Sean C. Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2024–21305 Filed 9–18–24; 8:45 am]
BILLING CODE 7710–12–P
lotter on DSK11XQN23PROD with NOTICES1
POSTAL SERVICE
Product Change—Priority Mail and
USPS Ground Advantage® Negotiated
Service Agreement
VerDate Sep<11>2014
ServiceTM.
16:59 Sep 18, 2024
Sean Robinson, 202–268–8405.
The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on September 9,
2024, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail & USPS Ground
Advantage® Contract 339 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2024–646, CP2024–655.
SUPPLEMENTARY INFORMATION:
BILLING CODE 7710–12–P
SUMMARY:
Postal
Notice.
FOR FURTHER INFORMATION CONTACT:
[FR Doc. 2024–21356 Filed 9–18–24; 8:45 am]
Postal ServiceTM.
ACTION: Notice.
ACTION:
Date of required notice:
September 19, 2024.
DATES:
Sean Robinson,
Attorney, Corporate and Postal Business Law.
AGENCY:
AGENCY:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
SUMMARY:
POSTAL SERVICE
Product Change—Priority Mail and
USPS Ground Advantage® Negotiated
Service Agreement
Product Change—Priority Mail and
USPS Ground Advantage® Negotiated
Service Agreement
Postal ServiceTM.
Notice.
AGENCY:
ACTION:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice:
September 19, 2024.
FOR FURTHER INFORMATION CONTACT:
Sean Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on September 9,
2024, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail & USPS Ground
Advantage® Contract 337 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2024–641, CP2024–650.
SUMMARY:
Sean Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2024–21328 Filed 9–18–24; 8:45 am]
BILLING CODE 7710–12–P
AGENCY:
ACTION:
Postal ServiceTM.
Notice.
POSTAL SERVICE
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
Product Change—Priority Mail
Express, Priority Mail, and USPS
Ground Advantage® Negotiated
Service Agreement
Date of required notice:
September 19, 2024.
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice:
September 19, 2024.
FOR FURTHER INFORMATION CONTACT:
Sean C. Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on September 13,
2024, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express, Priority Mail &
USPS Ground Advantage® Contract 337
to Competitive Product List. Documents
SUMMARY:
DATES:
FOR FURTHER INFORMATION CONTACT:
Sean Robinson, 202–268–8405.
The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on September 13,
2024, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail & USPS Ground
Advantage® Contract 349 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2024–682, CP2024–691.
SUPPLEMENTARY INFORMATION:
Sean Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2024–21383 Filed 9–18–24; 8:45 am]
BILLING CODE 7710–12–P
Jkt 262001
POSTAL SERVICE
PO 00000
Frm 00093
Fmt 4703
Sfmt 4703
Postal ServiceTM.
Notice.
AGENCY:
ACTION:
SUMMARY:
E:\FR\FM\19SEN1.SGM
19SEN1
Agencies
[Federal Register Volume 89, Number 182 (Thursday, September 19, 2024)]
[Notices]
[Pages 76874-76878]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-21271]
-----------------------------------------------------------------------
POSTAL REGULATORY COMMISSION
[Docket No. C2024-13; Order No. 7507]
Complaint Proceeding
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Commission is appointing a Presiding Officer to represent
the interests of the general public and provide a public written
intermediate decision including findings of fact and conclusions of law
on the issues raised in this proceeding.
ADDRESSES: Submit notices of intervention electronically via the
Commission's Filing Online system at https://www.prc.gov. Persons
interested in intervening who cannot submit their views electronically
should contact the person identified in the FOR FURTHER INFORMATION
CONTACT: David A. Trissell, General Counsel, at 202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Background
III. Commission Analysis
IV. Ordering Paragraphs
I. Introduction
On June 17, 2024, Sai and Fiat Fiendum, Inc. (Complainants) filed a
complaint with the Commission regarding the Postal Service's treatment
of mail items for the blind (blind mail).\1\ On July 8, 2024, the
Postal Service filed its Motion to Dismiss. In response, Complainants
filed their ``[m]otion for summary elevation, or extension and
contingent withdrawal, and clarification,'' requesting, amongst other
relief, that the Commission extend the deadline to respond to the
Motion to Dismiss.\2\ The Commission granted this extension. On August
5, 2024, Complainants filed their opposition.\3\
---------------------------------------------------------------------------
\1\ Complaint regarding blind mail, June 17, 2024 (Complaint).
In its motion to dismiss, the Postal Service asserts that because
complaints must only be brought on the part of interested persons
and because the Complaint fails to identify the nature of ``Fiat
Fiendum, Inc.,'' the Complaint should be dismissed as it relates to
that party. United States Postal Service's Motion to Dismiss, July
8, 2024, at 1 n.1 (Motion to Dismiss). As the resolution of this
issue has no impact on the disposition of the Complaint, the
Commission will decline to reach the merits of this question.
\2\ See Motion for summary elevation, or extension and
contingent withdrawal, and clarification, July 12, 2024, at 5-9
(Motion for Extension). In addition to the seeking an extension,
Complainants requested: (1) ``summary elevation to a full proceeding
under Sec. 3022.30(a)(1) & Part 3010 Subpart F[;]'' (2) conditional
withdrawal of the Complaint should Complainants fail to file an
opposition to the Motion to Dismiss; and (3) clarification of which
rules apply to Commission proceedings. See Motion for Extension at
4, 9, 10-12. The Commission denies these requests as moot.
\3\ See Notice re opposition to motion to dismiss, August 5,
2024 (Opposition). Both parties also filed a number of other
documents not directly relevant to the issues in question here.
---------------------------------------------------------------------------
For the reasons explained below, the Commission concludes that the
Complaint raises an issue of material fact as to whether the Postal
Service has violated 39 U.S.C. 403(c) in its treatment of blind mail
for international mailers. The Commission determines that Complainants'
remaining claims should be dismissed for a lack of jurisdiction due to
Complainants' failure to state a claim for which relief can be granted.
II. Background
Complainant Sai is a blind American citizen living in the United
Kingdom who is the President of Fiat Fiendum, Inc., the other named
Complainant. Complaint at 3. Complainants explain that the Universal
Postal Convention (UPC), to which the United States is a party,
mandates that the international mailing of certain items for the blind
be free. Id. Complainants allege that the Postal Service has abdicated
its responsibilities under the UPC by putting unlawful conditions on
the free mailing of items for the blind, thus violating international
law as well as human rights law, anti-discrimination statutes, and the
U.S. Constitution. See, e.g., Complaint at 11-21.
Complainants provide several examples of the manner in which the
Postal Service is restricting the scope of free blind mail and
describes how these restrictions harm blind mailers who, like them,
need items shipped overseas. Complaint at 11-14. For instance,
Complainants explain that a common item used by blind individuals is
``a brailler--a specialized typewriter . . . that outputs braille
embossing rather than ink.'' Id. at 11. Complainants explain that this
item is essential for blind individuals and is often only available
from one U.S.-based company worldwide. Id. at 11-12. Complainants
assert, however, that because of the size of these braillers, the
Postal Service refuses to ship these items as free blind mail, in
violation of UPC rules. Id. According to Complainants, ``it is cost
prohibitive to mail this internationally without blind mail,''
particularly considering that blind people ``are often quite poor'' and
cannot rely on
[[Page 76875]]
economies of scale. Id. at 12. Complainants request that the Commission
initiate proceedings, including a public hearing and settlement
negotiations, that would ultimately lead to regulatory amendments to
the International Mail Manual (IMM) and Domestic Mail Manual (DMM). Id.
at 32-41.
In its Motion to Dismiss, the Postal Service classifies
Complainants' allegations as four separate claims, summarized as
follows: (1) a claim asserting that the Postal Service improperly
failed to categorize blind mail as a standalone class of mail; (2) a
claim that the Postal Service's treatment of blind mail violates
international treaty law; (3) a claim that the Postal Service
discriminates against customers with blindness in violation of the
Rehabilitation Act and 39 U.S.C. 403(c); and (4) a claim that the
Postal Service has committed Constitutional violations. Motion to
Dismiss at 1-2. According to the Postal Service, the international
treaty, discrimination, and Constitutional claims should be dismissed
because they do not fall within the Commission's jurisdiction. Id. at
4-14, 17-20.\4\ The Postal Service states that the claim relating to
mail classification fails because both logic and Congressional intent
suggest that blind mail need not be its own class. Id. at 20-22.
---------------------------------------------------------------------------
\4\ The Postal Service also states that Complainants have no
private right of action under the UPC. Id. at 14-17.
---------------------------------------------------------------------------
Complainants respond that the Complaint provides adequate legal and
factual grounds to deny the Motion to Dismiss.\5\ Complainants also
argue that the Postal Service has refused to confer with them and that
such a referral should result in sanctions against the Postal
Service.\6\
---------------------------------------------------------------------------
\5\ Opposition at 1, 3. Complainants also argue that the Postal
Service's arguments for dismissal rely on Rule 12 of the Federal
Rules of Civil Procedure (and related caselaw), which does not apply
to Commission proceedings. See Opposition at 1-2; see also Motion
for Extension at 11-12. The Commission does not interpret the Postal
Service's arguments as relying on Fed. R. Civ. P. 12 and any caselaw
cited within the Motion to Dismiss appears to be for purposes of
persuasive analogy. Nevertheless, the Commission's conclusions in
the analysis that follows do not rely on Fed. R. Civ. P. 12.
\6\ See Opposition at 3; see also Complaint at 9; Motion for
Extension at 5-9. The Commission notes that the meet-and-confer
requirement is an obligation that applies only to a complaint and a
subsequent answer and does not apply to motions to dismiss or
subsequent pleadings. See 39 CFR 3022.10(9), 3022.12, and 3022.14.
Because the Postal Service has not yet filed an answer in the
current docket, the meet-and-confer requirement does not apply to
the Postal Service at this time.
---------------------------------------------------------------------------
III. Commission Analysis
At present, the determinative issue is whether the Complaint raises
genuine issues of material fact or law within the Commission's
jurisdiction. The Commission has jurisdiction over complaints that meet
the statutory requirements of 39 U.S.C. 3662(a). Within 90 days after
receiving a complaint under section 3662(a), the Commission must either
(1) begin proceedings on the complaint upon finding that such complaint
raises material issues of fact or law; or (2) issue an order dismissing
the complaint.\7\ The Commission must issue a written statement setting
forth the bases of its determination. 39 U.S.C. 3662(b)(1)(B).
---------------------------------------------------------------------------
\7\ 39 U.S.C. 3662(b)(1)(A); see 39 CFR 3022.30(a).
---------------------------------------------------------------------------
Section 3662(a) permits any interested person to file a complaint
with the Commission if they believe the Postal Service is not operating
in conformance with the requirements of 39 U.S.C. chapter 36; 39 U.S.C.
101(d), 401(2), 403(c), 404a, or 601; or any regulations promulgated
under any of those provisions.\8\ In turn: section 101(d) requires
postal rates to be established to apportion the costs of all postal
operations to mail users on a fair and equitable basis; section 401(2)
permits the Postal Service to adopt, amend, and repeal rules and
regulations not inconsistent with title 39 as may be necessary to
execute its functions under title 39 ``and such other functions as may
be assigned to the Postal Service under any provisions of law outside
of'' title 39; section 403(c) prohibits the Postal Service, except as
specifically authorized under title 39, from making any undue or
unreasonable discrimination among mail users when providing services
and establishing classifications, rates, and fees until title 39, as
well as granting any undue or unreasonable preferences to any mail
user; section 404a, except as specifically authorized by law, prohibits
the Postal Service from establishing rules or regulations that create
unfair competition; compel the disclosure, transfer, or licensing of
intellectual property to any third party; and offer services based on
confidential information, without consent, unless substantially the
same information is obtainable from an independent source; section 601
governs the carriage of letters out of the mails.
---------------------------------------------------------------------------
\8\ 39 U.S.C. 3662(a); see 39 CFR 3022.2.
---------------------------------------------------------------------------
Chapter 36 contains provisions in title 39 relating to rates,
classes, and services.\9\ The Commission has consistently held that its
complaint jurisdiction is limited to complaints filed against the
Postal Service that involve alleged violations of these five specific
sections (or subsections) of title 39 or the provisions contained in
chapter 36.\10\ Lacking jurisdiction over a given complaint, the
Commission must dismiss the complaint.\11\
---------------------------------------------------------------------------
\9\ Docket No. C2023-1, Order Granting Motion and Dismissing
Complaint with Prejudice, January 24, 2023, at 5-6 (Order No. 6428).
\10\ Docket No. C2015-3, Order Dismissing Complaint, August 26,
2015, at 15-16 (Order No. 2687); Docket No. C2015-2, Order Granting
Motion to Dismiss, July 15, 2015, at 15 (Order No. 2585).
\11\ See, e.g., Order No. 6428 at 6; Docket No. C2015-1, Order
Granting Motion to Dismiss, March 4, 2015, at 6-7 (Order No. 2377).
---------------------------------------------------------------------------
A. As a Matter of Law, the Postal Service Has No Obligation To Create a
Standalone Class for Blind Mail
Complainants allege that the Postal Service has ``illegally''
failed to classify blind mail as a separate and distinct class of mail.
Complaint at 15. In response, the Postal Service asserts that this
allegation fails to state a claim on which relief can be granted.
Motion to Dismiss at 20. The Postal Service argues that the purpose of
``classes'' in the pricing system is to administer the price cap for
market dominant products and that, because blind mail is shipped free,
it is illogical to treat it as a separate class. Id. Indeed, the Postal
Service explains that splitting blind mail into a distinct class would
make it difficult for Congress to reimburse the Postal Service because
the easiest way to calculate reimbursement is ``through reference to
published rates, which are themselves subject to the applicable price
cap of the underlying analog class.'' Id. at 20-21. Further, the Postal
Service notes that Congress did not see fit to designate blind mail as
a separate product offering in its initial regulatory structure. Id. at
21.
The Commission agrees that Complainants have failed to state a
claim entitling them to relief. Though Complainants assert that the
Postal Service must categorize blind mail as its own mail class, they
do not identify any statute or regulation requiring such
categorization. See Complaint at 15. As such, Complainants fail to
affirmatively allege that ``the Postal Service is not operating in
conformance with the requirements of the provisions of sections 101(d),
401(2), 403(c), 404a, or 601, or [chapter 39] (or regulations
promulgated under any of those provisions),'' as required to state a
claim under section 3662(a). As such, the
[[Page 76876]]
claim related to the classification of blind mail must be
dismissed.\12\
---------------------------------------------------------------------------
\12\ See, e.g., Order No. 6428 at 1 (dismissing complaint on
grounds that it fails to state a claim for which relief can be
granted). As mentioned above, Complainants maintain that the Postal
Service's arguments for dismissal rely on Fed. R. Civ. P. 12 which,
they assert, do not apply to Commission proceedings. See Opposition
at 4 n.11. However, the Commission does not interpret the Postal
Service's Motion to Dismiss as being based upon that Rule and
Complainants have failed to cite any specific instances of such
reliance.
---------------------------------------------------------------------------
B. The Commission Does Not Have Jurisdiction Over the UPC Claims and
the UPC Does Not Create a Private Right of Action
As explained above, Complainants allege that the Postal Service's
treatment of blind mail violates the UPC in numerous ways (for
instance, by restricting its definition of who can receive free blind
mail to exclude partially-sighted individuals, by restricting the
weight for free blind mail, and by restricting free blind mail only to
reading material). See Complaint at 22-31. In response, the Postal
Service asserts that the Commission does not have jurisdiction to hear
allegations that the Postal Service has violated international treaty
law and, moreover, that the UPC does not create a private right of
action for alleged treaty violations. Motion to Dismiss at 6.
Specifically, the Postal Service argues that violations of the UPC do
not fall within the Commission's jurisdiction under section 401(2)
(specifying that the Postal Service may adopt rules ``not inconsistent
with [title 39]'') because the UPC is not affirmatively codified in
title 39; rather, the statutes related to blind mail in title 39 are
consistent with the rules laid out in the IMM. Id. at 5-14.
The Postal Service is correct that Complainants have not alleged
any violations of section 401(2) (or otherwise) sufficient to raise
Commission jurisdiction over its UPC Claims. As the Commission has
previously stated, a claim falls within section 401(2) ``only if the
Postal Service adopted, amended, or repealed rules or regulations
inconsistent with title 39.'' Order No. 2377 at 6. ``Section 401(2) is
not a `catch all' provision over which the Commission enjoys unlimited
jurisdiction pursuant to 39 U.S.C. [] 3662(a).'' \13\ Here,
Complainants alleged that the Postal Service violated the UPC--a
separate and distinct set of rules not captured by section 401(2). As
such, the Commission does not have jurisdiction to hear the UPC
claims.\14\
---------------------------------------------------------------------------
\13\ Docket No. C2023-11, Order Granting Motion to Dismiss in
Part and Denying Motion for Preliminary Injunction, December 19,
2023, at 10 (Order No. 6880).
\14\ This interpretation accords with prior Commission precedent
that the Department of State, rather than the Commission, ``is
responsible for interpreting international law generally and the UPU
Constitution and Acts specifically.'' Docket No. R2018-1, Order on
Price Adjustments for First-Class Mail, USPS Marketing Mail,
Periodicals, Package Services, and Special Services Products and
Related Mail Classification Changes, November 9, 2017, at 18 (Order
No. 4215).
---------------------------------------------------------------------------
Even assuming for the sake of argument that the Commission could
appropriately hear the UPC claims, they would necessarily fail because
the UPC provides no private right of action for its violation. Unless
the text of an international treaty explicitly states otherwise, the
presumption is that ``international agreements, even those directly
benefiting private persons, generally do not create private rights or
provide for a private cause of action in domestic courts.'' \15\ Here,
nothing in the text of the UPC provides for a cause of action in favor
of private citizens. On the contrary, as the Postal Service notes, the
Universal Postal Union (UPU) instead contemplates resolution disputes
between countries (the parties to the UPU itself).\16\ As such,
Complainants do not have the ability to bring a cause of action to the
Commission for an alleged Postal Service violation of the UPC.
---------------------------------------------------------------------------
\15\ McKesson Corp. v. Islamic Republic of Iran, 539 F.3d 485,
489 (D.C. Cir. 2008) (internal quotation marks omitted) (quoting
Medellin v. Texas, 552 U.S. 491, 506 n.3 (2008)).
\16\ See Motion to Dismiss at 15, n.52 (citing UPU Constitution
art. 3[2]; UPU General Regulations art. 154); see also Hye Ja Choi
v. United States Postal Serv., No. CV 18-00051 SOM/RLP, 2019 WL
1063363, at *4 (D. Haw. Mar. 6, 2019) (holding that, under the
Universal Postal Union's Acts of Congress, there is no private right
of action for a violation).
---------------------------------------------------------------------------
C. The Discrimination and Constitutional Claims Fail for Lack of
Jurisdiction
1. Constitutional Claims
Complainants assert that the Postal Service is infringing on their
First and Fourth Amendment rights by prohibiting free blind mail from
containing advertisements or being used for ``a profit-making
transaction'' and by opening blind mail to determine its eligibility.
Complaint at 19-21. In response, the Postal Service asserts that
nonconformance with the U.S. Constitution is not a basis for Commission
jurisdiction under section 3662 and, as such, the Commission lacks
jurisdiction to hear the Complainants' Constitutional claims. As
previously discussed, the Postal Service is correct in noting that
Commission jurisdiction is constrained to the five specific sections
(or subsections) of title 39 enumerated in section 3662 and that
Constitutional violations are not included therein.\17\ As such,
Complainants' First and Fourth Amendment claims must be dismissed.
---------------------------------------------------------------------------
\17\ See 39 U.S.C. 3662(a); see also City & Cnty. of San
Francisco v. U.S. Postal Serv., No. C 09-01964 JSW, 2009 WL 3756005,
at *3 (N.D. Cal. Nov. 5, 2009) (noting that constitutional claims do
not fall under the Commission's section 3662 jurisdiction); Docket
No. C2011-2, Order Addressing Complaint and Authorizing Settlement
Negotiations, August 16, 2011, at 3 (Order No. 808) (noting that
federal court retained constitutional claims while dismissing
regulatory issues as within the Commission's jurisdiction).
---------------------------------------------------------------------------
2. Discrimination Claims
Complainants also assert that all of their allegations constitute
``human rights and disability discrimination'' in violation of section
403(c) and the Rehabilitation Act.\18\ However, according to the Postal
Service, the Complainants' allegations of disability discrimination
also fail for lack of Commission jurisdiction. Motion to Dismiss at 17.
Specifically, the Postal Service notes that the Complainants bring
their discrimination claims under the Rehabilitation Act, but states
that the Commission has already held that such claims are not proper
under section 3662(a). Id. at 17-18. Further, the Postal Service
asserts that Complainants have not properly alleged a claim of
discrimination sufficient to invoke jurisdiction under 39 U.S.C.
403(c). Id. at 18.
---------------------------------------------------------------------------
\18\ Complaint at 17. Complainants do not specify what they mean
by ``human rights'' or how they differ from the discrimination
claims under section 403(c). Therefore, the Commission will treat
both the human rights and discrimination claims as allegations of
violations of section 403(c).
---------------------------------------------------------------------------
In terms of the Rehabilitation Act claim, the Postal Service is
correct that the Commission does not have jurisdiction to hear such
claims. In Docket No. C2023-11, the Commission previously analyzed
allegations that the Postal Service had violated the Rehabilitation Act
by discriminating against a postal user based on her disability. See
Order No. 6880 at 10. The Commission noted that ``the Commission's
complaint jurisdiction is limited to hearing allegations that the
Postal Service is not operating in conformance with the requirements of
39 U.S.C. chapter 36'' and that ``claims related to . . .
discrimination prohibited by 29 U.S.C. [] 701 et seq. [the
Rehabilitation Act] . . . are alleged violations of statutes not
specifically enumerated in 39 U.S.C. [] 3662(a).'' Id. Therefore, the
Commission dismissed such claims. Id. Likewise, the Commission does not
have jurisdiction to hear Complainants' allegations that
[[Page 76877]]
the Postal Service violated the Rehabilitation Act and thus such a
claim must be dismissed.
However, Complainants' discrimination claim under 39 U.S.C. 403(c)
must be analyzed differently. Citing to the Commission's decision in
Docket No. C2020-2, the Postal Service correctly notes that in order to
state a claim for violation of 39 U.S.C. 403(c), a complainant must
allege that ``(1) the complainant is receiving less favorable services
than those provided to one or more other postal customers, (2) the
complainant is similarly situated to those postal customers receiving
more favorable service, and (3) there is no rational or legitimate
basis for denying the complainant the more favorable service currently
being provided to those similarly situated postal customers.'' Motion
to Dismiss at 18 (citing Order No. 6880 at 13-14). In turn, the Postal
Service asserts that:
the FMFTB regulations confer benefits in favor of `blind and other
handicapped persons' relative to the rest of the mailer population.
The allegation that Complainants cannot send or receive
advertisements free of charge just like all other mail users
effectively defeats a section 403(c) claim since Complainants admit
that they are not receiving less favorable services.
Id. n.66.
The Postal Service is correct that, had Complainants alleged that
blind mailers are being discriminated against in relation to the larger
mailing population as a whole, such a claim would necessarily fail.
However, taken in the light most favorable to them, Complainants'
allegations are instead that blind mail users outside of the United
States are subject to less favorable (i.e., more expensive) services
than those located inside the United States (and that such treatment is
illegitimate). See Complaint at 11, 13. For instance, the Complainants
allege that, based on the IMM, they were prevented from using free
blind mail to send and receive repaired canes from their U.S.-based
manufacturer--a service they would have been able to take advantage of
had they been located in the United States. Id. at 11. Similarly, they
explain that if they ``want something new, unusual, or bespoke, which
[they] could get shipped to [them] for free in the US (and which the
UPC requires be shipped to [them] for free in the UK too), [they] can't
get it at all (or not without layers of intermediation, months of
delay, and substantially increased costs).'' Id. at 13. Therefore,
Complainants have raised plausible allegations that the Postal Service
has implemented rates that unfairly discriminate against foreign blind
mailers.\19\
---------------------------------------------------------------------------
\19\ The Postal Service does not appear to argue that section
403(c) is inapplicable to issues of international law. Indeed, the
Postal Service has previously stated that ``39 U.S.C[.] 403(c),
which provides that rates may not be unduly or unreasonably
discriminatory or preferential,'' is one of the criteria ``that
govern the Postal Service's international rate setting authority.''
Implementation of International Customized Mail Service, 57 FR
30651-52, July 10, 1992. Similarly, the Commission, in advising the
Department of State related to changes made to the Acts of the UPU,
previously explained that section 403(c) would apply to rates that
did not ``fairly apportion costs'' and thus ``grant preferences to .
. . foreign mailers'' over domestic ones. Letter from Chairman Dan
G. Blair to Deputy Assistant Secretary Gerald C. Anderson, June 30,
2008, at 2 (attached as exhibit to Opposition).
---------------------------------------------------------------------------
This conclusion conforms with previous Commission precedent. In
Docket No. R2018-1--a general Market Dominant rate case--the Chamber of
Commerce argued that by setting mailing rates lower for foreign mailers
than for American mailers, the Postal Service was violating section
403(c) by unreasonably discriminating against American mailers.\20\ The
Commission determined that such concerns should instead be brought
``under section 3662(a) of title 39 of the United States Code, which
provides that any interested person who believes that the Postal
Service is not operating in conformance with section 403(c) may lodge a
complaint with the Commission in such form or manner that the
Commission prescribes.'' Order No. 4215 at 18. Here, Complainants have
in fact brought their claims that the Postal Service is unfairly
discriminating against them based on country of residence properly in a
section 3662(a) proceeding.
---------------------------------------------------------------------------
\20\ Docket No. R2018-1, U.S. Chamber of Commerce Comments on
the United States Postal Service Notice of Market-Dominant Price
Adjustment, October 26, 2017, at 2-11.
---------------------------------------------------------------------------
The Postal Service may very well have a rational reason for
treating international mailers differently than domestic mailers in
terms of blind mail, but that is a material issue of fact not before
the Commission on a motion to dismiss. At this juncture, the Complaint
has raised a genuine issue of material fact and law--namely, whether
the Postal Service's treatment of blind mail unreasonably discriminates
against foreign mailers in violation of section 403(c).\21\ As such,
the Commission shall begin proceedings on the Complaint. See 39 U.S.C.
3662(b)(1)(A)(i). Pursuant to 39 CFR 3022.12(b) and 3022.14, the Postal
Service is directed to file an answer to Complainants' Complaint,
``Errata & Addenda,'' and Second Addendum (consolidated as one
superseding, amended complaint) within 10 days of this Order.
---------------------------------------------------------------------------
\21\ The Postal Service points out that significant procedural
issues are created when a complainant submits multiple errata and
addenda to their original complaint, rather than file an amended
complaint. See United States Postal Service Response to
Complainants' (1) Notice and Motion Requesting Leave to File
``Errata and Addenda'' to the Complaint and (2) Notice and Motion
Requesting Leave to File ``Second Addendum, July 8, 2024, at 2-3
(Response to Motions for Leave). The Commission appreciates the
Postal Service's position regarding this issue. Within the Response
to Motions for Leave, the Postal Service also states that, should
the Motion to Dismiss be denied, ``the Postal Service requests that
the Commission require that Complainants first seek the Commission's
leave and, if granted, that all of the allegations and claims from
the original complaint, the Errata and Addenda, the Second Addendum,
and any new matter be consolidated into a single, consolidated,
superseding, amended complaint.'' Response to Motions for Leave at
4. Accordingly, going forward the Commission and all parties to this
matter shall treat the allegations made in the original complaint
and the subsequent errata and first and second addenda as a
consolidated, superseding, amended complaint.
---------------------------------------------------------------------------
Pursuant to 39 CFR 3010.106, the Commission appoints Joseph K.
Press to serve as presiding officer to ascertain the outstanding issues
of material fact and law in this matter. Parties may request that the
presiding officer obtain specific discovery but may not independently
propound discovery. The presiding officer shall examine the disputed
issues identified above and provide a public, written intermediate
decision including findings of fact and conclusions of law on the
issues raised in this proceeding. 39 CFR 3010.335. Pursuant to 39 CFR
3022.30(c), John Avila is designated as an officer of the Commission
(Public Representative) to represent the interests of the general
public in this proceeding.
IV. Ordering Paragraphs
It is ordered:
1. The Commission finds that the Complaint regarding blind mail,
filed June 17, 2024, raises material issues of fact.
2. The United States Postal Service's Motion to Dismiss, filed July
8, 2024, is granted on all grounds except for the claim related to the
alleged violation of 39 U.S.C. 403(c) as enumerated above.
3. Pursuant to 39 CFR 3022.12(b) and 3022.14, the Postal Service is
directed to file an answer to Complainants' Complaint, ``Errata &
Addenda,'' and Second Addendum (consolidated as one superseding,
amended complaint) within 10 days of this Order.
4. Pursuant to 39 CFR 3010.106, the Commission appoints Joseph K.
Press as a presiding officer in this proceeding.
5. Parties may request that the presiding officer obtain specific
discovery but may not independently propound discovery.
[[Page 76878]]
6. Pursuant to 39 CFR 3022.30(c), John Avila is designated as an
officer of the Commission (Public Representative) to represent the
interests of the general public in this proceeding.
7. The presiding officer shall, pursuant to 39 CFR 3010.335,
provide a public written intermediate decision including findings of
fact and conclusions of law on the issues raised in this proceeding.
8. The Secretary shall arrange for publication of this order in the
Federal Register.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2024-21271 Filed 9-18-24; 8:45 am]
BILLING CODE 7710-FW-P