In addition to collecting back taxes, the IRS also applies interest and penalties against those who do not follow the rules. The United States Postal Service® (USPS®) needs to take a page from the IRS book and apply more strict consequences for those who choose to cheat the Move Update rules.

Claiming postal discounts for using an NCOALINK® service, but never applying the changes to your list is illegal.

It is not that the USPS® lacks authority to consistently apply strong consequences, but historically it has not taken full advantage of this authority. In fact, the Move Update form states  “I understand that anyone who furnishes false or misleading information on this form or who omits information requested on this form may be subject to criminal and/or civil penalties, including fines and imprisonment.”

Yes, there have been periodic reports of Move Update audits finding companies not in compliance, but the scarcity of these reports and the relatively light consequences does little to deter would-be cheaters. However, let the word spread that some executives are going to jail and the USPS® now hands out penalties and interest charges amounting to five times the illegally claimed postal discounts and the mailing industry will take notice.

Specifically, NCOALINK® crooks are costing all of us higher postal rates. They place multiple financial burdens on the USPS® by claiming discounts not earned and then depositing a higher percentage of Undeliverable As Addressed (UAA) mail into the system. This costs the USPS® (and ultimately us) twice.

With the coming Intelligent Mail Barcode, the USPS® will be in a very good position to more easily see which mailers have the highest UAA mail. With this information, increasing the number of audit teams and publicizing ‘busts’ will quickly pay for any increase in required manpower.

Let’s stop subsidizing the cheaters!