New legislation allows electronic delivery of investor documents, potentially reducing USPS mail volumes and raising concerns for traditional mail sectors.
The US House has passed legislation that allows electronic delivery of investor documents as the default option. This move could further reduce mail volumes for the struggling Postal Service, as reported by New York's FreightWaves.
Section 205 of the INVEST Act directs the Securities and Exchange Commission to issue rules within a year that permit investment companies to switch to electronic-only delivery of financial information. Customers will still have the option to request paper copies.
Proponents argue that digital disclosure improves efficiency, reduces waste, and enhances security compared to physical mail. The Investment Company Institute contends that electronic delivery allows for real-time information rather than static data.
However, opponents, including mass marketers and print suppliers, warn that the measure threatens jobs and revenue in the direct mail sector and for the Postal Service. They express concerns that older Americans and rural households may struggle with digital platforms or lack reliable internet access.
Kathleen Siviter of the Alliance of Nonprofit Mailers stated that the bill would further weaken the Postal Service, which reported a US$2.8 billion operating loss in the year ending September 30, as first-class mail volumes fell by five percent. She emphasized that paper remains more secure against cyberattacks and outages.
Additionally, the Social Security Administration recently ceased sending paper checks to retirees under a presidential order aimed at modernizing payments. Less than one percent of beneficiaries still receive paper checks, which the Treasury noted cost about 50 cents each compared to 15 cents for electronic transfers. According to SSA data, paper checks are 16 times more likely to be lost or stolen.
