Royal Mail gives undertakings on tariffs and discounts

29 January 2004

Following undertakings from Royal Mail, Postcomm has decided not to confirm a provisional enforcement order on the company. The order was served in November 2003 after Postcomm received information which suggested that Royal Mail was offering substantial discounts to attract catalogue and advertising mail. The order will be allowed to lapse towards the end of February 2004, when the undertakings will be in place.

After investigations by Postcomm, Royal Mail has undertaken to provide advance notice to Postcomm and the consumer body Postwatch of any future discounts and new tariffs, and publish the information on its website.

Postcomm will continue its investigation into the compatibility of these discounts with Royal Mail’s licence.

Notes for editors

Section 23 of the Postal Services Act 2000 allows Postcomm to issue a Provisional Order with immediate effect if it appears to the Commission that a licence holder such as Royal Mail is contravening any condition of its licence or is likely to contravene any such condition and that such an order is needed. The order requires the company concerned to provide information about the alleged licence breach.