SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction

II. Background and Contents of Filing

III. Commission Action

IV. Ordering Paragraphs

I. Introduction

On July 14, 2026, pursuant to 39 CFR part 3040, the Postal Service filed a request to make changes to the product description for the Market Dominant Address Management Services (AMS) product in the Mail Classification Schedule (MCS) section 1515 by adding a new National Change of Address (NCOA) service called NCOA+ to the services offered under AMS.^[1]

II. Background and Contents of Filing

The Postal Service initially proposed to add NCOA+ to the AMS product in Docket No. R2026-1.^[2] After receiving comments in that proceeding alleging that the introduction of NCOA+ could violate 39 U.S.C. 404a,^[3] the Commission determined that the proposed addition of NCOA+ could not “be appropriately vetted during an expedited rate adjustment proceeding” “given the issues raised and the record before the Commission.” ^[4] Thus, the Commission did not approve the proposed changes related to the introduction of NCOA+ and stated that “[s]hould the Postal Service desire to re-propose the introduction of NCOA+, it should do so in a proceeding under 39 [CFR] part 3040.” Order No. 9584 at 130-31.

In the Request, the Postal Service re-proposes the addition of NCOA+ to AMS with a proposed implementation date of October 4, 2026. Request at 1-2. The Postal Service explains that the NCOA database holds all change-of-address (COA) records and that NCOA services allow entities access to the database in order to ensure correct addresses on mailings. Id. at 2. Currently, the Postal Service offers six NCOA services, which license the database (updated weekly or monthly depending on the license) to these entities and allow for the development and sale of software utilizing the database, the updating of themailing lists on behalf of mailers by licensees, the self-updating of mailing lists by individual licenseemailers, and use on mail processing equipment to remove undeliverable-as-addressed (UAA) mail and supply correct addressing information. Id. at 2-5. The Postal Service states that each of the six services have different requirements, limitations, and features associated with them and are offered at differing price points. Id. at 3-5, 21.

The Postal Service states that NCOA+ is proposed to be offered as an additional NCOA price category and would provide the exact same data as the other NCOA price categories. Id. at 5-6. The Postal Service represents that the primary difference between NCOA+ and the other NCOA services would be the way in which the underlying NCOA database is accessed. Id. at 6. The Postal Service states that the six current NCOA services require use of both Coded Accuracy Support System (CASS) compliant software and NCOA software (that licensees develop themselves or license from a provider). Id. The Postal Service explains that NCOA+ would provide “cloud-based access to the NCOA software and database through an encrypted, modern application programming interface (`API')[,]” with the API functioning “as a direct conduit to lookup a single address and receive new address information when a match is found.” Id. The Postal Service explains that NCOA+ users therefore would not have to develop or purchase “specifically compliant software[,]” and “NCOA+ will provide a more secure and easier way for licensees to instantly access and retrieve the most up-to-date data without having to wait for the next file distribution.” Id. The Postal Service states that NCOA+ would have several “enhancements” over current NCOA offerings, including the ability for a single address lookup, more frequent updates, the simplification of Privacy Act compliance requirements, and reduced administrative burdens on licensees. Id. at 6-7. The Postal Service also notes that NCOA+ would provide the Postal Service with several benefits, including reductions in costly UAA mail and improved ability to track and monitor database usage. Id. at 7-8. The Postal Service explains that NCOA+ would be priced based on the licensee's number of API calls per month. Id. at 10.

The Postal Service represents that NCOA+ would be available to all mailers on the same terms and conditions and could be utilized by current NCOA licensees to access NCOA+'s distinct features. Id. at 8. The Postal Service expects that NCOA+ would be used by some current NCOA licensees and also that NCOA+ will attract new users to use NCOA data because of the lower technical barriers to entry. Id. The Postal Service also expects that many current licensees would continue using the other NCOA services for various reasons, including how their systems are optimized and potential switching costs. Id.

The Postal Service acknowledges that in reducing barriers to access, ( printed page 45291) somemailers who currently pay licensed intermediaries to check addresses may opt to use NCOA+ instead and that the number of available software providers may increase. Id. at 8-9. The Postal Service states that in this way, NCOA+ would likely increase competitive pressure on some current NCOA licensees but that “[a]ny competitive pressure will arise from the fact that other companies would be empowered by easier access to Postal Service data products.” Id. at 9. The Postal Service notes, however, that although access to the database may be easier with NCOA+, software will still be necessary and “NCOA+ is not a direct replacement for all the services current licensees either do for themselves or purchase from a third-party.” Id. The Postal Service asserts that “competition law and policy, including [39 U.S.C. 404a], is designed to increase competition, improve what is offered in the market, and protect consumers” and not “entrench current market participants or insulate them from market shifts related to technological advancement, changes to customer preferences, or new entry.” Id. The Postal Service also asserts that 39 U.S.C. 404a is inapplicable to this proceeding as it does not establish any “rule or regulation” within the meaning of the statute. Id. at 9-10.

Pursuant to 39 CFR 3040.180(b)(2), the Postal Service provides supporting justification for the proposed changes to the MCS, including a description of and rationale for the proposed changes; an explanation of why the proposed changes are not inconsistent with the policies and applicable criteria of chapter 36 of Title 39 of the United States Code, applicable regulatory requirements, and applicable Commission directives and orders; and a description of the likely impact that the proposed changes will have on users of the product and on competitors. See id. at 10-15. The Postal Service also provides a copy of the applicable sections of the MCS and the proposed changes in legislative format in Attachment A. See id. at 17-24.

III. Commission Action

The Commission establishes Docket No. MC2026-300 for consideration of matters raised by the Request. The Commission notes that the Postal Service requests a Commission decision in this proceeding within 60 days. Id. at 1-2. The Commission will strive to work expeditiously on this matter; however, the issues raised and what comes to light as the record is developed will likely determine the timing of the decision in this proceeding.

The Commission invites comments on the Postal Service's Request. Comments are due July 31, 2026. The filings can be accessed via the Commission's website (https://www.prc.gov). The Commission appoints Stephanie A. Quick to represent the interests of the general public (Public Representative) in this docket, pursuant to 39 U.S.C. 505. The Public Representative does not represent any individual person, entity, or particular point of view, and, when Commission attorneys are appointed, no attorney-client relationship is established.

IV. Ordering Paragraphs

It is ordered:

1. The Commission establishes Docket No. MC2026-300 for consideration of matters raised by the Postal Service's Request.

2. Pursuant to 39 U.S.C. 505, Stephanie A. Quick is appointed to serve as an officer of the Commission (Public Representative) to represent the interests of the public in this proceeding.

3. Comments are due July 31, 2026.

4. The Order, or abstract thereof, shall be published in the Federal Register .

91 FR 45290