USPS v. Postal Regulatory Commission

The USPS sought review of three orders of the Commission implementing the court's mandate in GameFly, Inc. v. Postal Regulatory Commission (GameFly I). In GameFly I, the Commission found that USPS violated the proscription of undue or unreasonable discrimination in 39 U.S.C. 403(c) when it refused to provide to GameFly the same special manual processing service for first class round-trip letter DVD mailers that USPS provided to Netflix. The court upheld the Commission's finding of discrimination but rejected the remedy it adopted - reducing the DVD flat service rate - because it left in place unjustified residual discrimination in that GameFly was still forced to pay a higher rate than Netflix paid to obtain comparable DVD protection. The court remanded for the district court to justify the residual discrimination or eliminate it entirely. On remand, the Commission adopted a remedy which equalizes the cost of first class letter and flat DVD rates, enabling GameFly to use either service at the same cost. The court concluded that the Commission's decision was consistent with the court's decision in GameFly I and with the Postal Accountability and Enhancement Act, Pub. L. No. 109-435, 120 Stat. 3198. Accordingly, the court denied USPS's petition for review. View "USPS v. Postal Regulatory Commission" on Justia Law