---
kind: "section"
citation: "39 U.S.C. § 3642"
title: "39"
title_heading: "Postal Service"
number: "3642"
heading: "New products and transfers of products between the market-dominant and competitive categories of mail"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/39/3642"
units:
  - "Part IV — Mail Matter"
  - "Chapter 36 — Postal Rates, Classes, and Services"
  - "Subchapter III — Provisions Relating to Experimental and New Products"
---

# §3642. New products and transfers of products between the market-dominant and competitive categories of mail

- (a) **In General.—** Upon request of the [Postal Service](/usc/39/102.md?p=1) or users of the mails, or upon its own initiative, the Postal Regulatory Commission may change the list of market-dominant [products](/usc/39/102.md?p=6) under [section 3621](/usc/39/3621.md) and the list of competitive [products](/usc/39/102.md?p=6) under [section 3631](/usc/39/3631.md) by adding new [products](/usc/39/102.md?p=6) to the lists, removing [products](/usc/39/102.md?p=6) from the lists, or transferring [products](/usc/39/102.md?p=6) between the lists.
- (b) **Criteria.—** All determinations by the Postal Regulatory Commission under [subsection (a)](#a) shall be made in accordance with the following criteria:
  - (1) The market-dominant category of [products](/usc/39/102.md?p=6) shall consist of each [product](/usc/39/102.md?p=6) in the sale of which the [Postal Service](/usc/39/102.md?p=1) exercises sufficient market power that it can effectively set the price of such [product](/usc/39/102.md?p=6) substantially above costs, raise prices significantly, decrease quality, or decrease output, without risk of losing a significant level of business to other firms offering similar [products](/usc/39/102.md?p=6). The competitive category of [products](/usc/39/102.md?p=6) shall consist of all other [products](/usc/39/102.md?p=6).
  - (2) **Exclusion of products covered by postal monopoly.—** A [product](/usc/39/102.md?p=6) covered by the postal monopoly shall not be subject to transfer under this section from the market-dominant category of mail. For purposes of the preceding sentence, the term “[product](/usc/39/102.md?p=6) covered by the postal monopoly” means any [product](/usc/39/102.md?p=6) the conveyance or transmission of which is reserved to the [United States](/usc/39/3702.md?p=7) under [section 1696 of title 18](/usc/18/1696.md), subject to the same exception as set forth in the last sentence of [section 409(e)(1)](/usc/39/409.md?p=e-1).
  - (3) **Additional considerations.—** In making any decision under this section, due regard shall be given to—
    - (A) the availability and nature of enterprises in the private sector engaged in the delivery of the [product](/usc/39/102.md?p=6) involved;
    - (B) the views of those who use the [product](/usc/39/102.md?p=6) involved on the appropriateness of the proposed action; and
    - (C) the likely impact of the proposed action on small business concerns (within the meaning of [section 3641(h)](/usc/39/3641.md?p=h)).
- (c) **Transfers of Subclasses and Other Subordinate Units Allowable.—** Nothing in this title shall be considered to prevent transfers under this section from being made by reason of the fact that they would involve only some (but not all) of the subclasses or other subordinate units of the class of mail or type of [postal service](/usc/39/102.md?p=1) involved (without regard to satisfaction of minimum quantity requirements standing alone).
- (d) **Notification and Publication Requirements.—**
  - (1) **Notification requirement.—** The [Postal Service](/usc/39/102.md?p=1) shall, whenever it requests to add a [product](/usc/39/102.md?p=6) or transfer a [product](/usc/39/102.md?p=6) to a different category, file with the Postal Regulatory Commission and publish in the Federal Register a notice setting out the basis for its determination that the [product](/usc/39/102.md?p=6) satisfies the criteria under [subsection (b)](#b) and, in the case of a request to add a [product](/usc/39/102.md?p=6) or transfer a [product](/usc/39/102.md?p=6) to the competitive category of mail, that the [product](/usc/39/102.md?p=6) meets the regulations promulgated by the Postal Regulatory Commission under section 3633. The provisions of [section 504(g)](/usc/39/504.md?p=g) shall be available with respect to any information required to be filed.
  - (2) **Publication requirement.—** The Postal Regulatory Commission shall, whenever it changes the list of [products](/usc/39/102.md?p=6) in the market-dominant or competitive category of mail, prescribe new lists of [products](/usc/39/102.md?p=6). The revised lists shall indicate how and when any previous lists (including the lists under sections [3621](/usc/39/3621.md) and [3631](/usc/39/3631.md)) are superseded, and shall be published in the Federal Register.
- (e) **Prohibition.—** Except as provided in [section 3641](/usc/39/3641.md), no [product](/usc/39/102.md?p=6) that involves the physical delivery of letters, printed matter, or packages may be offered by the [Postal Service](/usc/39/102.md?p=1) unless it has been assigned to the market-dominant or competitive category of mail (as appropriate) either—
  - (1) under this subchapter; or
  - (2) by or under any other provision of law.

## Source credit

(Added Pub. L. 103–123, title VII, § 704(a)(2), Oct. 28, 1993, 107 Stat. 1268; amended Pub. L. 109–435, title II, § 203, Dec. 20, 2006, 120 Stat. 3209.)

## Notes

### Editorial Notes

### Amendments

2006—Pub. L. 109–435 amended section generally. Prior to amendment, section consisted of subsecs. (a) to (d), related to special authority relating to reduced-rate categories of mail.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section applicable with respect to rates for mail sent after Sept. 30, 1993, see section 704(c)(1) of Pub. L. 103–123, set out as an Effective Date of 1993 Amendment note under section 3626 of this title.