DMA (UK) slams Postcomm’s PIP ‘contradiction’

The DMA (UK) has attacked Postcomm’s handling of the pricing in proportion (PIP) issue, branding the decision that it is minded to accept the scheme a “contradiction in terms” which “smacks of legal nicety rather than correct consultation”.

In its response to Postcomm’s consultation, released this week, the trade body expressed concern that the proposals will lead to direct mail budgets being slashed and moved to other channels.

A DMA membership survey has exposed the fact that 78 per cent of members believe the industry should insist on 12 months to implement the scheme, while only 55 per cent have seen Royal Mail’s revised PIP proposals. Some 55 per say their businesses will be affected by the scheme.

The trade body also questions whether Postcomm’s argument about how PIP reflects the price is still valid, because it is based on Royal Mail data from 2003.

A final decision on PIP is expected next month.