Post, Penalties and Protection Procedures

The High Court has upheld a £9.62m financial penalty levied against Royal Mail for its failure to follow mail protection procedures.

The penalty was proposed after Postcomm, the industry regulator, reviewed Royal Mail’s mail integrity procedures and found some important features were not being applied across the business during 2004/05. One key area where Royal Mail was found to be at fault was in the recruitment and training processes for temporary staff; an area which we understand Royal Mail have subsequently made significant improvements to.

Royal Mail accepted the failures highlighted by Postcomm, but appealed against the size of the financial penalty imposed. The High Court, however, upheld the size of the fine, ruling that it accurately reflect the loss suffered by customers from Royal Mail’s failure to protect mail in its care.

Postwatch views the penalty as being a strong reminder to Royal Mail that the integrity of the mail is a very important issue to customers, and that every effort should be made to ensure the safe and correct delivery of all customers’ mail.