US authorities settle with Pitney Bowes Presort Services over underpaid postage allegations

The US Department of Justice announced yesterday (13 October) that Pitney Bowes Presort Services has agreed to pay the United States $9.4m to resolve allegations that it underpaid postage for mail processed at its Reading, Pennsylvania, facility by claiming discounts to which it was not entitled. Pitney Bowes Presort Services, which is based in Omaha, Nebraska, helps prepare mailings for large mailers by, among other things, gathering, sorting and presenting the mail to the US Postal Service (USPS).

According to a statement issued by the US Department of Justice: “The settlement announced today resolves allegations that Pitney Bowes claimed discounted postage rates for mail that failed to comply with the Move Update standard, which requires that mail be updated with change-of-address information provided by the Postal Service.

“Pitney Bowes was obligated to ensure that mail it submitted on behalf of its customers at discounted postage rates complied with Move Update, by either updating addresses on the mail directly or having its customers perform the updates.  The Postal Service offered lower postage rates to Pitney Bowes for complying with Move Update and other requirements.”

Inspector in Charge David W. Bosch of the U.S. Postal Inspection Service’s (USPIS) Philadelphia Division commented: “When mailers don’t adhere to Move Update standards it negatively affects the entire mailing community.”

“The U.S. Postal Inspection Service will continue to investigate mailers who fail to comply with postal regulations.”

The US Department of Justice added that the claims settled in this case are “allegations only, and there has been no determination of liability”.