GameFly wins USPS dispute--gets same treatment as Netflix, BB
Two years ago, Gamefly began a series of disputes* with the US Postal Service, citing preferential treatment received by competing companies such as Netflix and Blockbuster as the main point of contention.
While the USPS helped curb theft**, they refused to hand-sort Gamefly mailers at no additional charge; this ultimately resulted in an estimated 11,000 broken discs per month due to the less-than-gentle machine sorting equipment. Netflix and Blockbuster, on the other hand, were accommodated for after similar complaints were made and are not charged any additional fees.
After a two-year struggle most folks likely forgot about, Gamefly has prevailed! The Postal Regulatory Commission handed down a ruling stating that Netflix and Blockbuster had been receiving unfair preferential treatment.
Quote by Brendan Sinclair:
The new ruling will give Gamefly and other rental-by-mail outfits the same consideration Netflix and Blockbuster have been receiving for years.
*Original disputes via GamePolitics.com: http://www.gamepolitics.com/2009/10/13/gamefly-amp-usps-continue-fight
**Discussions of theft via EvilAvatar.com: http://www.evilavatar.com/forums/showthread.php?t=97714&highlight=gamefly
This isn't just a victory for GameFly who often has questionable mailing times anyway--this is a victory for other current and future companies who wish to ship game & movie DVDs via a similar method and don't want to have tens of thousands of broken discs to cover.