United Kingdom Post Scheme and Overseas Letter Post Scheme – Confirmation of delivery and amendments to prohibitions 24 June 2016 A consultation document Published: Responses required by: 24 June 2016 24 July 2016 - by 5pm © Royal Mail 2016 Royal Mail is a trading name of Royal Mail Group Ltd. Registered number 4138203. Purpose 1. Postal Schemes set out the terms and conditions for postal services for consumers and business customers who use Royal Mail’s services but who do not hold an individual contract with Royal Mail. Customers who use stamps, on-line postage, franking meters or some credit accounts to pay for Royal Mail services do so under a Postal Scheme rather than an individual contractual arrangement. The Postal Schemes are available on our website. 2. Making any amendments to these Postal Schemes has the effect of making new Postal Schemes. Royal Mail makes Postal Schemes under Section 89 of the Postal Services Act 2000 (as amended) – ‘the Act’. Before making changes to the Schemes we formally consult customers and stakeholders.1 3. This document is our consultation regarding the changes we would like to make to the UK Post Scheme and the Overseas Letter Post Scheme regarding: The inclusion within the UK Post Scheme of delivery event confirmation for small and medium parcels sent by First and Second Class; Amending the items prohibited from our network within both Schemes to include “hoverboards”; and Correcting minor drafting errors in the UK Post Scheme. 4. These new Schemes would be called the Royal Mail United Kingdom Post Scheme 3 October2 2016 and the Overseas Letter Post Scheme 3 October 2016. 5. Royal Mail is seeking feedback on the changes to the Schemes. We will evaluate feedback before we finalise the wording and publish (in the London, Edinburgh & Belfast Gazettes) the new postal Schemes, in order for those Schemes to take effect. 1 Royal Mail is undertaking this consultation exercise in relation to proposed schemes in accordance with the requirements set by our regulator, Ofcom. Royal Mail is also required to notify Ofcom of the changes to the Schemes we are planning to make under Section 89A (1) of the Act. Ofcom do not approve the Schemes but they do have the power under Section 89A of the Act to direct us to modify our Schemes. 2 The use of the word "October" is illustrative and the actual month would be the month the new Scheme came into force. © Royal Mail 2015 – Page 2 of 10 A. Delivery event confirmation 6. Customer needs are changing when it comes to parcel delivery. Having visibility of their item is increasingly important to our customers. Royal Mail is not allowed under the current regulations to provide tracking on USO First and Second Class parcels, but we can provide a confirmation of delivery to senders of mail. Independent research commissioned by Royal Mail found that c.90% of business users, including small to medium enterprises (SME’s), rated confirmation of delivery as important.3 7. Royal Mail wants to respond to these changing customer needs. We are therefore planning on providing a delivery event for most small and medium parcels sent First Class or Second Class within the UK. What we are proposing 8. From October 2016, customers sending Royal Mail First and Second Class small or medium USO parcels under the UK Scheme will be able to see a delivery event confirmation if they have bought postage online or at a Post Office. 9. Customers will be able to enter the unique code they receive at the point of purchase into RoyalMail.com and view when their parcel has been delivered. Customers will not be able to track the parcel as it moves through Royal Mail’s network - they will only be able to see when the item has been delivered.4 10. Customers wishing to apply stamps to their parcels, may continue to do so, but will not benefit from being able to see delivery event confirmation. 11. There will be no change to Royal Mail Signed For and Special Delivery Guaranteed. Customer impact 12. We believe these changes will move our First and Second Class service for small and medium parcels closer to what our consumers now expect. 13. Further we believe these changes will help support ecommerce. They will provide SMEs using USO parcel services with the ability to confirm delivery in the event of a customer query at no extra cost. 3 (Business users including SME’s sending 20+ parcels a week) Parcels perceptions. Trinity McQueen. March 2016 4 This does not constitute a tracking facility as defined under DUSP 1.1.3. A “tracking facility” is defined as a facility enabling a sender to monitor the progress of a postal packet through the postal network. © Royal Mail 2016 Royal Mail is a trading name of Royal Mail Group Ltd. Registered number 4138203. B. Amending our prohibitions list 14. A self-balancing scooter or "hoverboard" as it is commonly referred to, is a type of, rechargeable battery-powered scooter. They typically consist of either one wheel or two wheels arranged side-by-side, with two small platforms upon which the rider stands. The device is controlled by the rider's feet, standing on the builtin gyroscopic pads. 15. There are a number of issues with carrying these items in our network. In most cases they use a battery greater than 100wh. This size battery poses serious safety concerns, in particular there have been reports of them combusting. These incidents have been widely reported in the media.5 16. Items containing batteries over 100wh are already prohibited from Royal Mail’s network. While some hoverboards use smaller batteries, this is not easily identifiable without proper inspection. This causes particular problems in our air network, where the safety of items being transported is paramount. 17. In response to concerns over the size of the battery, many of the air carriers that Royal Mail uses to fly parcels (both within the UK and overseas) have issued explicit notice that they will no longer carry these specific items. 18. Therefore, in light of the safety concerns and in order to comply with airlines terms and conditions we believe it is necessary for Royal Mail to prohibit hoverboards completely from our network. 19. We plan to create a separate category for these in the Prohibitions list, rather than amending the current prohibitions in relation to batteries. We consider this the best way to ensure that customers are clear that these items are prohibited from the postal network. 20. This will help clarify to Post Office staff what can and cannot be accepted and help them provide better advice to customers. It will also make screening for prohibited items at airports easier as they will no longer have to ascertain the battery size. 21. Including these items on our prohibitions and restrictions list will bring us into line with other postal operators and airlines that have also included them in their prohibitions list due to safety concerns. Customer impact 22. We anticipate there may be a small amount of disappointed retailers that will no longer be able to send these items via Royal Mail. However we believe that in this 5 http://www.bbc.co.uk/news/business-34993205 © Royal Mail 2015 – Page 4 of 10 instance, safety must take precedent given the risk of large sized batteries combusting and the danger this presents in our network and air transportation. 23. We are working to advise our customers on what they can and cannot send. We are doing this through our sales teams and updated information on RoyalMail.com. We will also be providing clear guidance to Post Office staff to ensure they are correctly advising customers. C. Correcting drafting errors in the scheme 24. We intend to correct an error in the parcel sizes dimensions: Currently the maximum dimensions of a small parcel in the UK Post Scheme are given (in section 9.1.3) as 450 mm by 350mm by 80mm. This is a drafting error. The correct dimensions are 450 mm by 350mm by 160mm. 25. There has been no consumer detriment due to this error. Parcel sizes offered by Royal Mail in Post Office and online remained the correct 450 mm by 350mm by 160mm. 26. We also wish to remove the references to "Standard Parcels" from the UK Post Scheme and replace with First Class and Second Class. This is not a removal of a service. It is updating the names of the products to reflect how we currently market them as to consumers. 27. We intend to correct minor drafting errors in the UK Post Scheme. The majority of these relate to typographical errors and amendment to section numbering and cross references as a result of the changes described within this consultation document. What are the changes? 28. We intend to make an addition to the United Kingdom Post Scheme and Overseas Letter Post Scheme to include the following changes: 27.1 In respect of the addition of the changes described in Section A (Delivery event confirmation) of this consultation document, we intent to make the following changes: (i) In the footnote (numbered "3") at the end of section 8.2.1 we intend to add a sentence to make it clear that "delivery event confirmation is not available where First Class or Second Class services are purchased by use of a franking machine." (ii) At the end of the section 12.2 we would like to add the following explanation re the availability of delivery event confirmation to make it clear that this service element is only available when postage is purchased via the Post Office or via online channels: © Royal Mail 2015 – Page 5 of 10 "Please note that delivery event confirmation for small parcels and medium parcels sent by First Class or Second Class, requires the application of an appropriate label which is available at a Post Office or online. Please see section 19 for further details. (iii) A certificate of posting will be provided when customers purchase first class and second class with delivery event confirmation. We therefore intend to update the following sections which provide a list of products for which a certificate of posting will be provided to add in a reference to "parcels sent by First Class and Second Class with delivery event confirmation" : a. 17.7.4.6; and b. 17.7.5.1.1 (iv) 27.2 We intend to add a new Section 19 to the UK Post Scheme to add a description of the delivery event confirmation service element as follows: "19. First Class, Second Class and delivery event confirmation 19.1. Delivery event confirmation is available for small parcels and medium parcels sent by First Class or Second Class services to addressee's in the UK. It is not available for letters or large letters. 19.2. Where delivery event confirmation applies, a scan is taken by Royal Mail upon delivery or attempted delivery to the addressee or to another address such as a neighbour. Data from the scans is available online as described within this section 19. Please note that delivery event confirmation is not a tracked service: it simply provide a way of gaining confirmation of delivery or attempted delivery. 19.3. You must apply (or must ensure someone else applies) a Royal Mail barcoded postage label securely to the cover of the item for which First Class or Second Class has been purchased in a manner and position specified by us. 19.4. You may obtain a copy of the data captured upon delivery or attempted delivery of the item free of charge from our website (www.royalmail.com) up to 12 months after the item was posted." In respect of the changes described in section B (Amending our prohibitions list) of this consultation document and for both Schemes we intend to add the following as a new category within "prohibited items" (this will appear at section 5.3.19 in the UK Post Scheme and section 5.3 (23) of the Overseas Letter Post Scheme: "Hover boards or any type of rechargeable battery-powered: self-balancing scooter, mono-wheel, stand-up unicycle or electric skateboard," © Royal Mail 2015 – Page 6 of 10 27.2 In respect to the changes described in section C (Correcting drafting errors in the scheme) of this consultation document, at section 9.1.3 of the UK Post Scheme we wish to replace the references to "80mm" with "160mm" to reflect the changes described at paragraph 25 of this consultation document. As a consequence of this amendment paragraph 9.1.5 of the UK Post Scheme is no longer relevant and we intend to delete it. 27.3 The changes described in paragraph 25 of this consultation document (removal of the references to "Standard Parcels") affect sections 12.2 and 17.7.4.6 of the UK Post Scheme. New postal Schemes proposal 29. At Annex A of this consultation document we set out the proposed wording for the new postal Schemes that would reflect these changes. These would be called the Royal Mail United Kingdom Post Scheme 3 October6 2016 and Overseas Letter Post Scheme 3 October 2016. 30. The substantive changes described in this consultation document affect the following sections of the UK Post Scheme: 5.3.19 9.1.3 12.2 17.7.4.6 17.7.5.1.1 19 31. The substantive changes described in this consultation affect section 5.3 (23) of the Overseas Letter Post Scheme. 32. Following the outcome of this consultation, we will notify Ofcom of the new Royal Mail United Kingdom Post Scheme 3 October7 2016 and the new Royal Mail Overseas Letter Post Scheme 3 October 2016, as required by Section 89 of The Postal Services Act 2000 (as amended). 6 The use of the word "October" is illustrative and the actual month would be the month the new Scheme came into force. 7 The use of the word "October" is illustrative and the actual month would be the month the new Scheme came into force. © Royal Mail 2015 – Page 7 of 10 Consultation questions 33. The publication of this document initiates our consultation on our proposed new postal Schemes and we are interested in the views of stakeholders. 34. Please comment on whether you think Royal Mail’s proposals regarding the inclusion of delivery event confirmation, prohibitions, and other minor amendments in the UK Post Scheme and Overseas Letter Scheme as outlined in this document are fair and reasonable. If the proposals are not considered to be fair and reasonable please explain why. Timescales and next steps 35. Stakeholders are asked to submit answers to the questions set out above as soon as possible and in any event before the deadline of 5pm on 24 July 2016. 36. Responses should be made by post or by email to: Oliver Butler Royal Mail 100 Victoria Embankment London EC4Y 0HQ [email protected] 37. Please provide a completed cover sheet with the response that you wish us to consider. This cover sheet can be found in Annex B. We may publish responses, in full, on our website. If you would like your response or parts of your response to remain confidential please indicate this on the cover sheet. 38. Subject to concerns arising out of responses to this consultation, we propose to give at least one month’s notice such that the new postal Schemes would take effect on XX October 2016. This would take the form of a formal notification8 to Ofcom and Consumer Focus and publication of that notification on our website. 39. We will also publish details of the new postal Schemes in the London, Edinburgh & Belfast Gazettes before they take effect. 40. We will make changes to other literature and websites that we deem it appropriate in order to give as much publicity to these changes as we consider necessary. 8 Made under Designated Universal Service Provider (DUSP) Regulatory Condition 1.10 © Royal Mail 2015 – Page 8 of 10 Annex A Proposed new wording9 of: - The Royal Mail United Kingdom Post Scheme October 2016. - The Royal Mail Overseas Letter Post Scheme October 2016 See separate document: The Royal Mail Unite Kingdom Post Scheme consultation 9 Royal Mail reserves the right to make small drafting changes if required from to text that is set out in this Annex. © Royal Mail 2015 – Page 9 of 10 Annex B Cover sheet for response to a Royal Mail consultation BASIC DETAILS Consultation title: Royal Mail United Kingdom Post Scheme and Royal Mail Overseas Letters Post Scheme To (Royal Mail contact): Oliver Butler Name of respondent: Representing (self or organisation/s): Address (if not received by email): CONFIDENTIALITY Please tick below what part of your response you consider is confidential, giving your reasons why Name/contact details/job title ………………………………………………………… Organisation ………………………………………………………… Whole response ………………………………………………………… Part of the response ………………………………………………………… If there is no separate confidential annex, which parts? ……………………………………………………………………………………………………………………………………………. If you want part of your response, your name or your organisation not to be published, can Royal Mail still publish a reference to the contents of your response (including, for any confidential parts, a general summary that does not disclose the specific information or enable you to be identified)? YES/NO (please delete as appropriate) DECLARATION I confirm that the correspondence supplied with this cover sheet is a formal consultation response that Royal Mail can publish, subject to any declaration in the confidentiality section. If I have sent my response by email, Royal Mail can disregard any standard e-mail text about not disclosing email contents and attachments. Royal Mail may like to publish responses for the purposes of transparency. If your response is non-confidential (in whole or in part) and you are happy for us to publish your response once the consultation has ended, please tick here. Name Signed (if hard copy) Date:
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