Postage Increase Ruled Illegal

October 2019

The largest ever increase by the USPS in first class postage rates took effect in January 2019 when the price of a Forever stamp went from $.50 to $.55. Shortly thereafter, Doug Carlson went to court to challenge the legality of the increase in Carlson v. The Postal Regulatory Commission (PRC). In September 2019 the U.S. Court of Appeals for the D.C. Circuit agreed with him.

To initiate a request for rate a changes the USPS submits Notice to the Postal Regulatory Commission (PRC) and to the public. This Notice includes discussion of how the rate change helps achieve the objectives defined by statute. The Notice is submitted at least 45 days in advance of the proposed date of the change to allow time for review and for public comments.

Responsibility for reviewing and analyzing the Notice to determine compliance with applicable statutes and regulations is the jurisdiction of the PRC. In its decision on Carlson v. PRC, the Court ruled that the PRC violated the Administrative Procedures Act (APA) by not providing a satisfactory explanation for the rate increase, and by failing to respond to public comments.

The immediate result of the ruling is unclear and the USPS has said that for the time being the rate for Forever stamps will remain at fifty-five cents. The Court’s ruling in the case vacated the portion of the PRC’s Order 4875, the official approval for the rate hike, and further stated, “This decision will have no immediate impact. The Department of Justice has 45 days to request reconsideration and we fully expect them to do so.”

Mr. Carlson, who challenged the increase, is a private individual who has been interested in the Postal Service since childhood. He has a law degree from Boalt Hall School of Law at the University of California at Berkeley but is not a practicing attorney. He works as an assistant dean for academic planning at UC Santa Cruz.