Court endorses Canada Post’s interpretation of exclusive privilege

The Ontario Court of Justice, in a
decision rendered last week, endorsed Canada Post’s interpretation of section
14 of the Canada Post Corporation Act, which provides that Canada Post has the
exclusive privilege of collecting, transmitting and delivering letters in
Canada.
According to the court decision, Canada Post’s exclusive privilege
extends to all Canadian originating letters weighing up to 500 grams whether
destined for delivery within Canada or to places outside Canada.
This important court decision comes during the course of a lawsuit
brought against Key Mail, one of several remailers who have been collecting
large quantities of mail in Canada to induct it into the postal system of a
foreign postal administration. The court held that Key Mail’s activities in
connection with Canadian outbound international letters are a violation of
Canada Post’s exclusive privilege.
Parliament has provided Canada Post with the exclusive privilege in order
to fund universal postal service to all Canadians regardless of where they
live in Canada. The practice by remailers is depriving Canada Post between
$48 million and $80 million annually in revenue. Canada Post must continue to
provide, however, (under both the Canada Post Corporation Act and the
Universal Postal Union constitution) universal delivery service for inbound
international mail.
The decision will figure prominently in Canada Post’s prosecution against
other remailers and postal administrations believed to be in violation of the
same provision of the Canada Post Corporation Act.

For further information: François Legault, Manager, Media Relations,
Canada Post, (613) 734-8888