Paul Miller of the American Catalog Mailers Association recently described a number of “perfect storm” scenarios that could disrupt business for catalog marketers. In the latest ACMA Journal, Miller expressed concerns about USPS rate hikes, privacy regulations, and state use-tax legislation. Miller serves as Vice President and Deputy Director of the not-for-profit association of catalog marketers and vendors.

Read the full ACMA Journal article here.

The “Postal Storm”
Miller expects the USPS to file a rate case in July asking for an increase in postage rates. “Officials claim it will be a reasonable-sounding 5%, effective January 2011,” he said. “However, 5% is only an average. Some are calling for catalog rates to increase by as much as 10%. Standard Mail Flats would get the worst of it, but even if we're able to keep it to 5%, right now that's a lot.” The ACMA is working to minimize any increase in postal rates for catalogers, but Miller is concerned that large increases may be unavoidable.

“Please know that ACMA is not recommending you start scaling back 2011 circulation plans right now,” Miller said. “You do not want to hurt sales and cash flow by decreasing circulation plans, only to create a self-fulfilling outcome.”

The “Privacy Storm”
Miller is concerned by proposed privacy legislation currently in Congress. He says the law "would force internet publishers, advertising networks, and direct marketers of all types to disclose when they collect data on customers or prospects, requiring users to “opt in” before their personal data (even merely their name or address) are used for advertising or commerce purposes. In its current state, the draft bill could cripple all marketing channels, including catalogs, email, and web marketing.”

The “Use-Tax Storm”
Colorado recently passed a law that requires customers in the state to acquire a statement that recaps their annual purchases from online vendors. “In-state and out-of-state marketers must send to the Colorado tax collectors the information they need to hunt down your customers for back sales taxes, perhaps compounded by a penalty fee,” Miller says. “This imposes a huge new administrative burden and will greatly aggravate your Colorado customers in the process, putting you and your brand squarely in the middle.”

The ACMA is supporting a lawsuit, led by the DMA, to challenge the law. The organization is encouraging all marketers to support the legal challenge by donating to a legal fund. A particular concern is that other states, including California and Tennessee are monitoring the Colorado law and might develop similar requirements.

The ACMA’s Agenda
“The combination of these is very disturbing,” Miller said. “The outcome could be devastating. This is exactly why catalog interests need a strong, well-funded association.” He encourages all catalog marketers and suppliers to join the ACMA and participate in the efforts to protect the industry from legal and financial threats. Find out more about the ACMA at www.catalogmailers.org.