Legal Niches

GameFly Goes Postal over Poor Postal Service

By gamepolitics

When it comes to shipping rental DVDs, does the U.S. Postal Service give preferential treatment to big fish like Netflix and Blockbuster?

Video game renter Gamefly thinks so and has filed a complaint with the USPS, according to WebProNews:

Gamefly mails 590,000 video games monthly, and between one and two percent of those games is broken in transit or stolen along the way... at $50 per game that could be upwards of $600,000 lost in a month...

 

According to the complaint, the investigation also found that competitors Blockbuster and Netflix DVDs were manually removed from bulk mail and not processed through machines. This led to the company's allegations of discriminatory treatment.

In addition to mangling Gamefly's DVDs in its mail sorting machines, the postal service found that its employees were stealing the company's games as they went through the system. In fact, 19 USPS workers have been arrested by Postal Inspectors for ripping off Gamefly.

DOCUMENT DUMP: Grab Gamefly's complaint here.

Full post as published by GamePolitics.com on May 05, 2009 (boomark / email).