ARMAD: Postal Service Price Increase Affects Direct Marketing

F.A.
Ziarul BURSA #English Section / 18 iulie 2007

The Romanian Direct Marketing Association (ARMAD) has expressed concern with the Romanian Post Company"s decision to increase postal service fees by 60% as of August 1st. ARMAD believes this abrupt price increase will affect the Romanian direct marketing industry at a point in time when the industry is growing fast and consolidating its status in the communication industry.

ARMAD believes the Romanian Post Company is abusing their dominant position on the market, disregarding the interests of third parties. "The lack of transparency in making decisions and the exclusion of consultations with the main customers and beneficiaries of postal services, the deliberate disregard for the commercial interests of the customers and, ultimately, of the consumers, make the Romanian Post Company a fortress of the past and personal interests," reads an ARMAD press release.

In turn, the Romanian Post Company pointed out that the price increase was compliant with Law 133/2007 and reflected the market. According to them, the previous price increase was dated August 2004 and reflected the costs of 2003. As an example, RPC said the delivery of an ordinary letter was charged 0.5 RON, whereas the real cost of delivery was over 0.98 RON, according to an estimate dated December 2005.

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