USPS Sued Over Direct Mail Deal with Valassis

The Newspaper Association of America is challenging the U.S. Postal Service's deal with big commercial mailing company Valassis Communications in court. The agreement gives Valassis a steep postage discount in return for increased mail volume.

In August, the Postal Regulatory Commission approved the deal proposed by the Postal Service that would give Valassis discounts up to 34 percent provided it sends 1 million additional pieces of commercial mail over the next 12 months. The commission estimated that the increased volume would net the Postal Service up to $15.3 million over three years.