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Postal Explorer > Publication 417 - Nonprofit Standard Mail Eligibility > 6 Content-Based Restrictions
6 Content-Based Restrictions
6-1 Overview
6-1.1 Effective Date
In the 1990s, legislation was enacted that imposed content-based eligibility
restrictions affecting the mailing of certain products and advertisements for
products and services at the Nonprofit Standard Mail (nonprofit) rates.
6-1.2 Summary of Restrictions
The content-based restrictions concern these two questions:
• Whether a product is eligible for mailing at the nonprofit rates.
• Whether an advertisement for a product or service is eligible for mailing
at the nonprofit rates.
6-1.3 Legislative History
On November 5, 1990, the President signed into law Public Law 101-509, the
Treasury, Postal Service and General Government Appropriations Act for
1991, adding new subsection (j) to 39 U.S.C. 3626. This provision prohibits
the mailing of material at the nonprofit rates if it contains advertising for
credit, debit, or charge cards or similar financial instruments or accounts. This
provision also restricts the mailing of material at the nonprofit rates if it
contains advertising for insurance policies and travel arrangements.
On October 28, 1993, the President signed into law Public Law 103-123, the
Treasury, Postal Service and General Government Appropriations Act for
1994. Title VII of the Act, the Revenue Forgone Reform Act, amended
39 U.S.C. 3626 by adding provisions to subsection (j) and new subsection
(m). The new provisions in subsection (j) add additional advertising
restrictions; new subsection (m) restricts the mailing of products at the
nonprofit rates.
On September 30, 1994, the President signed into law Public Law 103-329,
the Treasury, Postal Service and General Government Appropriations Act for
1995, amending Public Law 103-123, which is a revision to 39 U.S.C. 3626(j).
This amendment creates an exemption to the statutory provisions for certain
advertisements printed in material that meets the content requirements for a
periodical publication as prescribed by the USPS.
6-1.4 Different Rules for Products and Advertisements
When considering eligibility for mailing at the nonprofit rates, the law
distinguishes between products and advertisements for products and
services. The tests for determining whether a product may be mailed at
nonprofit rates are different than those used to determine whether an
advertisement for a product or service may be mailed at those rates. When
considering whether an advertisement for a product or service may be mailed
at the nonprofit rates, it is important to determine the product or service
advertised. The law imposes different eligibility tests for advertisements
depending on the type of product or service advertised. (For an overview of
these rules and our suggested procedure for analyzing eligibility of
mailpieces for nonprofit rates, see the six-step process in 6-3.)
Since different eligibility standards apply to products and advertisements, it is
possible that a product itself can be eligible for mailing at the nonprofit rates,
but an advertisement for that same product may not be. The reverse is also
true. That is, a product might not be eligible for mailing at the nonprofit rates,
while an advertisement for that same product or service might be eligible for
mailing at these rates.
Example: Product Versus Advertising Standards
A church buys Bibles at $20 each. The Bible is ineligible for the
nonprofit rates because it does not meet any statutory provision for
mailing a product. However, advertisements for the Bible are likely to be
considered eligible for the nonprofit rates.
The sections below will discuss the factors used to determine eligibility of
such products and advertisements to be mailed at nonprofit rates.
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