Letter To John Leibowitz, Chairman, Federal Trade Commission

Letter

Letter To John Leibowitz, Chairman, Federal Trade Commission

Today, Congressman Paul Hodes called for a crackdown on online retailers that are jacking up the shipping costs for products sent to troops overseas. Packages sent to military personnel who are stationed outside of the US only require domestic shipping, as the Department of Defense takes control of all packages domestically. However, some online retailers are charging up to five times more to ship packages to military personnel than their stated rate for domestic shipping.

"Companies shouldn't be allowed to pad their bottom line at the expense of friends and family who are sending holiday gifts to our troops," said Congressman Hodes. "Military families sacrifice so much; especially at this time of year. It's unconscionable that some online retailers are profiteering on the backs of military families; and they must be stopped.

The Department of Defense has a long standing program with the United States Postal Service that allows for packages to be shipped overseas with domestic shipping rates. In a letter to the Chairman of the FTC, Congressman Hodes calls for an investigation into these unwarranted charges.

The full text of the letter is below:

Dear Chairman John Leibowitz,

I am writing to urge an investigation into troubling reports claiming that online retailers are charging higher rates to ship packages to Army Post Office (APO) military addresses. According to these reports, holiday shoppers who purchase gifts online to ship to APOs are facing unnecessary higher shipping charges that are unfair and unjustifiable. The Federal Trade Commission (FTC) should investigate why these higher shipping rates are charged and take steps to ease this burden on military families, especially during the holiday season in our current economic climate.

The reports are particularly troubling because online retailers often send items to be shipped to overseas APO military addresses to New York. The Department of Defense then pays for the cost to send the packages to the service members abroad. Sending a package through New York to an APO military address costs the company the same amount as shipping a package to New York, yet the consumer is charged a higher rate. According to Stars and Stripes, on a $120 dollar purchase at Walmart, the customer is charged $2.10 to ship the purchase to a domestic address. On the same item, Walmart charges $10.35 to send the package to an APO military address, almost five times as much as a domestic address. Unnecessarily raising costs at the expense of military families is simply wrong, and it must stop.

Many families in New Hampshire and across the country are sending last-minute presents to their mothers, fathers, brothers, and sisters who are courageously serving our country overseas. The holiday season is difficult enough for the many families who will not be together. Retailers should not be adding to the burden by charging higher shipping rates for APO military addresses, particularly when so many families are struggling in the current economy. I strongly urge the FTC to ease this burden on military families, and I look forward to your reply.

Sincerely,

Paul W. Hodes

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