[Federal Register: August 16, 2000 (Volume 65, Number 159)]
[Rules and Regulations]
[Page 49917-49919]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16au00-11]

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POSTAL SERVICE

39 CFR Part 111

Delivery of Mail to a Commercial Mail Receiving Agency

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This final rule adopts a proposal to amend section D042.2.6e
of the Domestic Mail Manual (DMM) to provide an additional secondary
address designation that may be used in the delivery address for mail
to holders of private mailboxes at commercial mail receiving agencies.

EFFECTIVE DATE: August 16, 2000. All parties must comply with the
amendment to D042.2.6e by August 1, 2001.

FOR FURTHER INFORMATION CONTACT: Larry Maxwell, 202-268-5015.

SUPPLEMENTARY INFORMATION: On March 13, 2000, the Postal Service
published in the Federal Register a proposed rule to amend section
D042.2.6e of the Domestic Mail Manual (65 FR 13258-13260). The original
rule was published as part of a comprehensive clarification and
revision of rules concerning delivery of mail to commercial mail
receiving agencies (CMRAs) published on March 25, 1999 (64 FR 14385-
14391). DMM section D042.2.6e established specific provisions for
addressing mail to a holder of a private mailbox at a CMRA. As
originally promulgated, the standard provided that the address must
include a specific secondary address designation: ``PMB'' (for
``private mailbox'') followed by a number assigned to the boxholder by
the CMRA. Under the proposed change, CMRA private mailbox holders would
have the option to use either ``PMB'' or ``#'' as the secondary address
designation.
    The secondary address designation, as discussed in the proposed
rule and earlier notices regarding the CMRA standards, was intended to
serve consumer protection interests. Previously, postal regulations had
not prescribed the manner in which mail to CMRA private mailbox holders
must be addressed, and many private mailbox holders have used a
designation (e.g., ``Suite'' or ``Apartment'') along with the street
address of the CMRA. This practice implied to senders of mail that the
boxholder maintained a physical presence at that location. These
addressing practices create the opportunity for fulfillment of criminal
fraud schemes. However, and as described in some comments, even where
this was not the case, the practice may be deceptive to consumers or
others. For example, consumers who desire to provide charitable
donations to local organizations or to make purchases from local
businesses might mistakenly believe they are doing so when they respond
to an out-of-state organization or firm with an address at a local
CMRA. For similar reasons, the local business or charity might also
suffer a competitive disadvantage from this practice.
    Accordingly, the original rule was intended to serve consumer
protection interests by providing the public with a means to be aware
whether an address represented a physical location. However, the Postal
Service later became aware the standard might have an unintended
consequence. In meetings with industry representatives, it was pointed
out that the ``PMB'' designation might adversely affect small
businesses. The March 13, 2000, proposal, which permitted the use of
either ``PMB'' or ``#'' as the secondary address designation, was
intended as a means to balance the consumer and small business
interests.
    The Postal Service received 20,456 comments on the rulemaking.
These were roughly comprised of three groups. The largest group (20,153
comments) supports the rulemaking. These comments, which were generally
submitted by CMRA owners or private mailbox holders, were identical in
content and format, and favored adopting the use of ``PMB'' or the
optional ``#'' as the secondary designation. It also appears likely
from the submissions that many of the commenters view this as a
compromise, and that they would be at least as satisfied with the
elimination of any required secondary address designation. However, if
a secondary address designation was required, these commenters
considered ``#'' to be preferable to ``PMB.''
    The smallest group (12 comments) expressly opposes the requirement
for a secondary address designation. Representatives of small business
groups and some CMRA private mailbox holders submitted these comments.
They questioned whether there are appreciable fraud statistics to
support the need for CMRA regulations. Some of these comments also
appear to oppose any postal standards concerning the delivery of mail
to CMRAs. To the extent these comments concern standards other than
those proposed in DMM D042.2.6e, they are beyond the scope of this
rulemaking.
    The remaining 291 comments oppose the proposed rule that allows the
use of ``PMB'' or the optional ``#'' as the secondary designation.
These comments were generally submitted by groups representing consumer
protection constituencies, such as state attorney generals, an
association of state charity officials, and an association of financial
crimes investigators, as well as address list maintenance vendors, an
association of presort mailers, major mailers, individual consumers,
and private mailbox holders. These commenters urge the requirement for
use of the ``PMB'' secondary address designation be retained without an
option to use ``#'' as an alternative. They observe the ``#''
designation may be confusing to senders of mail, who believe it
represents a physical location. The comments also question whether the
use of ``PMB'' will adversely affect small businesses, and, in any
event, assert private mailbox holders should not be permitted to use
addresses that falsely imply a physical presence at the location.
Significantly, some commenters appear to believe that, as proposed,
D042.2.6e would have a negative impact on consumer protection
interests.
    Based on its review of the current record, the Postal Service has
determined to adopt the proposed revision to DMM D042.2.6e that allows
the use of ``PMB'' or the optional ``#'', in certain conditions, as the
secondary address designation for a CMRA customer.
    At the outset, it should be noted that the Postal Service rejects
any assertion that it lacks authority to promulgate rules to protect
consumer protection interests. The Postal Reorganization Act
establishes Postal Service responsibilities to protect citizens from
fraudulent and deceptive practices

[[Page 49918]]

through use of the mails. The Postal Service efforts in this area are
widespread and ongoing; these efforts are not targeted at CMRAs. They
include initiatives directed at frauds conducted through post office
boxes; street addresses (rural and city delivery); and anywhere else,
including fraudulent solicitations appearing first on the Internet that
direct payment and shipment through the mails. Moreover, an important
part of any anti-fraud strategy incorporates preventive means and
consumer education so those consumers can protect themselves before
becoming a victim. The modifications to the CMRA addressing standards
reduce the possibilities consumers may be misled or confused by certain
mailing address terminology. It is also noted that virtually all
commenters and organizations that have participated in this process
have voiced their support for protection of consumer interests and the
Postal Service's role in this area.
    The Postal Service disagrees with comments that DMM section
D042.2.6e, especially as amended, will be harmful to small business
interests. Discussions with CMRA industry representatives, who
certainly have an interest in protecting their clientele, prior to the
publication of the proposed rule and comments received from these
interests and many CMRA owners and private mailbox holders support the
conclusion that the proposal provides a viable compromise for small
businesses.
    Some commenters contend the ``#'' will cause D042.2.6e to be
meaningless and ineffective, if not counterproductive. They observe
that businesses should not be permitted to imply to potential customers
that they are physically located at an address when that is not true,
even if that deception is merely used by reputable businesses to obtain
a competitive edge rather than for criminal purposes. These consumer
advocates assert the use of ``#'' currently implies a ``suite'' or
``apartment'' and that addressees will continue in the future to assume
that it implies a physical location at that address.
    The Postal Service understands these concerns. Indeed, absent
measures to ensure consumers will have the means to understand what
``#'' may mean and tools to determine whether a specific address is
located at a CMRA, the concerns could warrant withdrawal of the
rulemaking. However, the Postal Service and the CMRA industry will
jointly implement the following initiatives with the hope of minimizing
these possibilities:
    1. Educate the public on the meanings of both the ``PMB'' and ``#''
designations. The Postal Service also stands ready to work with both
the CMRA industry and consumer groups to design these materials and the
means to distribute them to maximize public awareness.
    2. The Postal Service will establish methods (toll-free number and/
or Postal Service Web site) that can be accessed to determine whether a
street address is the location of a CMRA. This will enable persons who
receive mail with a ``#'' designation to determine whether the sender
is a CMRA boxholder.
    3. The Postal Service will continue efforts to work directly with
the CMRA industry to address areas of continued concern. The industry
is working with the Postal Service to ensure implementation of the
postal standards concerning delivery of mail to CMRAs. Additionally,
some industry members voluntarily participate in a Postal Inspection
Service training program to recognize and report improper activity at
CMRA locations.
    4. The Postal Inspection Service has improved its data collection
regarding the number of cases involving the use of off-premises
delivery services, including post office boxes, for fraudulent
purposes.
    In view of these steps, the Postal Service adopts the proposal to
allow the use of the ``#'' sign as an additional secondary addressing
option for CMRA boxholders.
    Several other aspects of the rulemaking also bear explanation. The
standard adopted on March 25, 1999, required the use of a four-line
address format. Under the final rule, this remains the preferred
format. However, it was proposed that customers have the option to use
a three-line format, with one exception, where the ``#'' secondary
address designation is used and the physical address of the CMRA
contains a secondary address designation, or the delivery address is a
rural route box style address. In these limited instances, use of the
``#'' designation is not allowed, which is necessary to ensure the
Postal Service's automated equipment can accurately process the mail.
The new standards accommodate these desires to use a three-line format,
as long as that mail can be effectively processed by Postal Service
equipment.
    The effective date of section D042.2.6e is August 1, 2001. Whenever
possible, the Postal Service encourages mailers to use the new
standards earlier. Nevertheless, the extended deadline for compliance
with the standard is consistent with the Postal Service's goal of
minimizing the implementation costs to CMRAs and their customers. It
allows CMRA customers to deplete existing stationery and to advise
correspondents of the new designation in the ordinary course of
business.
    For the reasons discussed above, the Postal Service hereby adopts
the following amendments to the Domestic Mail Manual, which is
incorporated by reference in the Code of Federal Regulations (see 39
CFR part 111.1).

List of Subjects in 39 CFR Part 111

    Postal Service.

PART 111--[AMENDED]

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

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 3001-
3011, 3201-3219, 3403-3406, 3621, 5001.

    2. The Domestic Mail Manual (DMM) is amended by revising modules A,
D, and F to read as follows:
A  ADDRESSING

A000  Basic Addressing

A010  General Addressing Standards

1.0  ADDRESS CONTENT AND PLACEMENT
* * * * *

1.2  Address Elements

    [Revise item b as follows:]
* * * * *
     b. Private mailbox designator (PMB or optional #) and number.
* * * * *
3.0  COMPLETE ADDRESS
* * * * *

3.2  Elements

    [Revise item b as follows:]
* * * * *
    b. Private mailbox designator and number (PMB 300 or #300).
* * * * *
5.0 RESTRICTIONS
* * * * *
    [Revise 5.3 as follows:]

5.3  Mail Addressed to CMRAs

    Mail sent to an addressee at a commercial mail receiving agency
(CMRA) must be addressed to their private mailbox (PMB or #) number at
the CMRA mailing address.
* * * * *
D  DEPOSIT, COLLECTION, AND DELIVERY

D000 Basic Information

* * * * *

[[Page 49919]]

D040 Delivery of Mail

* * * * *

D042 Conditions of Delivery

* * * * *
2.0   DELIVERY TO ADDRESSEE'S AGENT
* * * * *

2.6  Delivery to CMRA

* * * * *
    e. A CMRA must represent its delivery address designation for the
intended addressees by the use of ``PMB'' (private mailbox) or the
alternative ``#'' sign. Mailpieces must bear a delivery address that
contains the following elements, in this order:
Preferred Format
    (1) Line 1: Intended addressee's name or other identification.
Examples: JOE DOE or ABC CO.
    (2) Line 2: PMB and number or the alternative # sign and number.
Examples: PMB 234 or #234.
    (3) Line 3: Street number and name or post office box number or
rural route designation and number. Examples: 10 MAIN ST or PO BOX 34
or RR 1 BOX 12.
    (4) Line 4: City, state, and ZIP Code (5-digit or ZIP+4).
    Example: HERNDON VA 22071-2716. Examples of acceptable four-line
format addresses are:

JOE DOE
PMB 234
RR 1 BOX 12
HERNDON VA 22071-2716
    or
JOE DOE
#234
10 MAIN ST STE 11
HERNDON, VA 22071-2716
Alternate Format
    (1) Line 1: Intended addressee's name or other identification.
Examples: JOE DOE or ABC CO.
    (2) Line 2: Street number and name or post office box number and
PMB and number or the alternative # sign and number. Examples: 10 MAIN
ST PMB 234 or #234 or PO BOX 34 PMB 234 or #234.
    (3) Line 3: City, state, and ZIP Code (5-digit or ZIP+4). Example:
HERNDON VA 22071-2716.
    Exception: When the CMRA physical address contains a secondary
address element (e.g., rural route box number, ``suite'', ``#,'' or
other term), the CMRA customer must use ``PMB'' in the three-line
format.
    In this case, the following must be used:

JOE DOE
10 MAIN ST STE 11 PMB 234
HERNDON VA 22071-2716
      and
JOE DOE
RR 12 BOX 512 PMB 234
HERNDON VA 22071-2716

    It is also not permissible to combine the secondary address element
of the physical location of the CMRA address and the CMRA customer
private mailbox number, e.g., 10 MAIN ST STE 11-234. The CMRA must
write the complete CMRA delivery address used to deliver mail to each
individual addressee or firm on Form 1583 (block 3). The Postal Service
may return mail without a proper address to the sender endorsed
``Undeliverable as Addressed, Missing PMB or # Sign.''
* * * * *
F  FORWARDING AND RELATED SERVICES

F000  Basic Services

F010  Basic Information

* * * * *
4.0  BASIC TREATMENT
    Exhibit 4.1 USPS Endorsements for Mail Undeliverable as Addressed
[Revise Exhibit 4.1 to add new endorsement.]
* * * * *
    Undeliverable as Addressed, Missing PMB or # Sign
    Failure to Comply with D042.2.6e.
* * * * *
    Notice of issuance of the transmittal letter will be published in
the Federal Register as provided by 39 CFR 111.3.

Stanley F. Mires,
Chief, Counsel Legislative.
[FR Doc. 00-20812 Filed 8-15-00; 8:45 am]
BILLING CODE 7710-12-U