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A federal court dealt with a major blow to the US Postal Service on Friday, ruling that the mailing agency's five-hundred-plus price tag increases.
The U.S. Court of Appeals for the D.C. Circuit sided with Doug Carlson, a private citizen, who filed a petition against the Postal Regulatory Commission, an oversight body that approves all proposed USPS rate hikes. The court said that it is a violation of the administrative procedures.
The immediate fallout of the decision was made by the court, and it was considered that it was "considering our legal options." "USPS was forced to quickly fall as 2016, when PRC and an appeals recessed.
The five-cent increase-a 10% jump-was the largest-ever since 1995. The court, in an opinion written by Circuit Judge Neomi Rao, who is Trump appointee who formally worked in the White House of the Office of Information and Regulatory Affairs, called the hike "remarkable" and lacking in justification.
"The commission failed to provide an adequate explanation for the price tag, and, relatedly, failed to respond to public comments. [2006 Postal Accountability and Enhancement Act]'S statutory factors and objectives, "Rao wrote.
Instead, Rao said PRC on behalf of the three-judge panel, PRC is simply crunching the numbers and the Postal Service's proposal is compliant with its statutory caps for price increases. While USPS can not increase its rates of inflation, the rate of increase is higher.
The court said the commission failed to address public concerns regarding the postal service's argument. in mail usage. PRC argued for speedy decision by the commission.
"Courts commissioned the commission to serve as a rubber stamp of the Postal Service's proposed rate increases," the court said.
Gail Adams, PRC spokeswoman, said the commission "is reviewing the court's order and coordinating with the Department of Justice."
Carlson, who brought the challenge to the D.C. Circuit, said he was pleased with the decision and he would prevail. He is a private citizen with a law degree who does not practice law professionally. He is a hobby supporter of the Postal Service on behalf of the public and a hobby since the mid-1990s. After reading postal management's justification for its recent price increase, he knew he would challenge it.
"I said, 'That's complete nonsense, that's a big increase and it's unfair to the general public,'" Carlson said.
What happens now remains ambiguous, he said, noting PRC could only provide additional analysis to support price increases rather than ordering a rate reduction.
"It's a lot of confusion," he said.
A USPS spokesman said the current cost is still 55 cents.
Stephen Kearney, executive director of the Alliance of Nonprofit Mailers, applauded the ruling. Virtually all organizations representing large-scale mailers spoke out against the increase.
"Single-piece first-class postage is vitally important to much nonprofit fundraising and membership," Kearney said. "We welcome the court's ruling and look forward to hearing how it will be implemented."
In her ruling, Rao invoked the earliest days of U.S. history.
"Although the American Revolution was fomented in part by ordinary people who objected to taxation through stamps," she wrote. While Carlson raised his concerns "in less fraught times," she added.
This story was updated with additional information from the Postal Service.
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