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A proposed mail preference scheme, which would have allowed households to opt out of receiving both addressed and unaddressed junk mail, has been quietly rejected by ministers after objections from Royal Mail (LON:RMG) and other delivery companies.
The current mail preference scheme only restricts addressed junk mail and if households want to stop unaddressed junk mail, they must join two separate schemes by post — one run by Royal Mail, the other by the Direct Marketing Association. Registration on both schemes expires after two years and households have to reapply. Figures suggest that fewer than one in 50 households have signed up to these schemes.
The proposed changes, dubbed the door drop preference service, were initially due to come into effect in 2012. However, the proposal was ditched earlier this year following a prolonged row between the Department of the Environment (Defra) and the Direct Marketing Association over which companies were joining, The Times today reported. Freedom of information requests have shown that the Direct Marketing Association accused Defra of not doing enough to sign up other senders of junk mail. The trade body argued that if its members joined, advertisers would simply switch their junk mail to free newspapers. Defra rejected this analysis.
An estimated 12 billion items of junk mail are dropped on doormats each year, using the paper equivalent of about five million trees. Last year, junk mail revenues at Royal Mail increased to more than £500 million, with the company delivering about three billion items of unaddressed post. Earlier this month, the FTSE 100-listed postal group revealed that it was is piloting a scheme with a “well-known UK retailer”, under which the postal group will send direct mail to consumers based on their web browsing history. The move, which sparked fears that households will be ‘deluged’ with unwanted post, came as Royal Mail attempts to increase revenue in the wake of falling letter sales and competition for parcel delivery services.
Royal Mail’ share price has been subdued so far this morning. As of 08:16 BST, the stock was trading 0.38 percent lower at 520.50p.
As of 09:00 BST, Tuesday, 30 June, Royal Mail share price is 519.25p.
