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GameFly Wins Discrimination Ruling Against U.S. Postal Service

by Matt Bertz on Apr 22, 2011 at 12:36 PM

The Postal Regulatory Commission sided with the mail-based video game rental service regarding the raw deal it was getting from the USPS in comparison to Netflix and Blockbuster.

The original complaint filed by GameFly claimed that it was unfairly being charged non-machinable surcharges, while Netflix and Blockbuster were not. Manual sorting is integral to the preservation of the DVDs, as they are more susceptible to damage if sorted via the automated processing machines. The Commission dismissed the USPS argument claiming that the decision to manually sort Blockbuster and Netflix's envelopes was made by local processing units to avoid costly machine jamming.

According to Post & Parcel,The USPS has 60 days to set new postal rates for round-trip disc-based mail. The postal service can still appeal the ruling.

[Source: Gamasutra]