Postwatch defiant as Royal Mail threatens legal action

by Daniel Farey-Jones,, Brand Republic 07-Dec-04, 07:00

LONDON - Postwatch has refused to retract its advice to the public to send Christmas cards by second-class post, after receiving threats of legal action from a 'furious' Royal Mail.

Postwatch, the watchdog for postal services, issued advice on November 29 that second-class stamps were better value at Christmas than first-class stamps because cards using them were more likely to arrive within three days than first class-stamped card were to arrive the next day.

Postwatch told consumers: "At Christmas time, a first-class stamp does not mean a first-class service."

It based its advice on its own review of Royal Mail's performance over the last two Christmasses, which revealed that first-class performance declined dramatically, "to the point that more than three in every 10 letters posted first class failed to be delivered the following working day".

The advice received wide coverage in the media and prompted Royal Mail to write to Postwatch. It is believed by the Sunday Times to have appointed law firm Shillings to examine possible legal action.

A Royal Mail spokesperson would not comment on the contents of the letters but said: "We are furious at the misleading impression Postwatch has given that first-class mail does not arrive faster than second class. That is absolute rubbish."

In a tit-for-tat move Postwatch has appointed its lawyers of its own, Wragge and Co, in response to the letters from Royal Mail.

A Postwatch spokeswoman said: "They are threatening legal action against us. We are being bullied, we are only a tiny consumer council."

If consumers follow the advice, it could knock Royal Mail's profits at a time when it is targeting a yearly profit of £400m, which would trigger bonus payments to all staff. It made a £217m profit in the first half of the year.

The Sunday Times reported that industry sources believe if the public adopts the advice, it could wipe off as much as £60m of Royal Mail's revenue.

Postwatch has already proved to be a thorn in Royal Mail's side, launching a campaign earlier this year to encourage the public to complain about misdirected mail.

Royal Mail was attacked by the Evening Standard yesterday, which said that its service was "close to collapse", with thousands of items late, misdelivered or stolen in London. It had planted an undercover reporter as a postman in North London for three-and-a-half weeks.

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