Federal Trade Commission (FTC)

pre-need contracts before 1984

*no disclosures required *modifications trigger disclosures

basic services of funeral director and staff

*only fee that may be designated as non-declinable service fee *requires specific disclosure language if non-declinable *may include unallocated overhead *may be included in the retail price of caskets

casket prices

*price range for caskets offers for sale with statement "a complete list will be provided at the funeral home" *prices of individual caskets

outer burial container prices

*price range of obc offered for sale with statement "a complete list will be provided at the funeral home" *prices of individual obc

direct cremation prices

*purchaser provides container *funeral home provides alternative container *must include description of services and containers provided

immediate burial

*purchaser provides the casket *funeral home provides casket or alternative container *alternative container not mandated for immediate burial *must include description of services

required acts or practices (preventative requirements)

*telephone price disclosure *cpl *obcpl *gpl *statement of funeral goods and services selected (contract)

1970s

sunset legislation eliminates various regulatory boards

1997

test shopping (sweeps) begin

prices disclosures

unfair or deceptive acts or practices-failure to furnish accurate price information

1974

manguson-moss warranty/ftc improvement act gives ftc the power to create trade regulation rules. ftc calls for complaints regarding funeral service and receives 144

statement of funeral goods and service selected (contract) - document format

no specific format required, but categories should generally correspond to items on the gpl

november 1979

russo amendment passed in house of representatives- would exempt funeral service from ftc regulation

april 1999

formal review of rule initiated (scheduled completion 2002)

1975

initial proposed trade regulation rule published in federal register

commission administers

a. funeral service trade regulation rule b. clayton anti trust act c. fair packaging and labeling act d. truth in lending e. fair credit reporting f. robinson patman act g. manguson-moss warratny act h. cooling off regulation for door to door sales

pre need price lists

*may vary from gpl used for at need situations *must include all required disclosures

funeral providers cannot

*misrepresent legal, cemetery, crematory requirements *embalm for a fee without permission *require the purchase of a casket for direct cremation *require the purchase of certain goods or services as a condition to furnish other goods or services *engage in unfair or deceptive practices as described in the rule

required purchase of funeral goods and funeral services

*basic services of funeral director and staff may be non-declinable *tying arrangements prohibited *no casket handling fees *acceptance of third party merchandise and/or providers *combination of goods and services that are impossible, impractical, or excessively burdensome not required *mandatory disclosures

required disclosures of gpl (six)

*consumers right to select only the goods and services desired *embalming *alternative container for direct cremation *basic service fee *cpl *obcpl

misrepresentations

*embalming *casket for cremation *outer burial container *legal and cemetery requirements *preservative and protective claims *cash advances

placement of disclosures

*exactly as rule describes *clear and conspicuous manner

outer burial container price list document format

*funeral provider firm name *caption outer burial container price list *effective date *printed or typewritten *list, notebook, brochure, chart *retail prices of obc for sale in any order -description to identify each -special order items not required to be listed

CPL documet format

*funeral provider firm name *caption- casket price list *effective date *printed or typewritten *list, notebook, brochure, chart *retail prices of caskets and alternative containers usually offered for sale in any order -description to identify each -special order items not required to be listed

general price list document format

*funeral provider firm name, address, telephone number *caption- general price list *effective date *printed or typewritten *retail prices of funeral goods and/or funeral services offered for sale in any order

requirements of the rul

*funeral providers must give consumers accurate, itemized price information *all funeral providers must comply *violations may result in penalties of up to $11,000 per violation

pricing methods

*itemization required *package pricing optional

other pricing methods

1. alternative price lists 2. pre need price list 3. in addition to and not in place of the required itemized prices 4. free items

state exemptions

1. application available to state agencies 2. available if state provides overall level of protection that is as great as or greater that protection afforded by the rule

itemization of goods and services required, if offered for sale (at least 16 items)

1. basic services of funeral director and staff 2. embalming 3. other preparation of body 4. use of facilities and staff for viewing 5. use of facilities and staff for memorial service 6. use of facilities and staff for funeral service 7. use of equipment and staff for graveside service 8. transfer of remains to funeral home 9. hearse 10. limo 11. casket prices 12. outer burial container prices 13. forwarding remains to another funeral home 14. receiving remains from another funeral home 15. direct cremation prices 16. immediate burial

embalming requirements/provisions

1. cannot charge for embalming without prior permission 2. express permission required 3. exigent circumstances

enforecement

1. consumer education 2. consumer compliance and activities 3. self-enforcement 4. test shopping (sweeps) 5. funeral rule offenders program (frop) 6. compliance and enforcement may differ from state to state but must meet the minimum requirements of the rule

contract

1. identical wording as given in the rule must be used 2. required disclosures must be placed as the rule prescribes in a clear and conspicuous manner 4. must be given for retention at the conclusion of discussion of arrangements

distribution of the gpl (triggering event)

1. in person inquiry about funeral goods, services or prices at the funeral home or elsewhere 2. upon beginning discussion of any of the the following -prices of funeral goods or services -overall type of funeral service or disposition -specific funeral goods or services offered by the provider 3. must be for retention 4. requesting permission to embalm not a triggering event 5. no requirement to mail gpl to a person or persons who call on the phone to inquire about prices

contract must include

1. itemized written statement identifying the funeral goods and services selected and the prices of each 2. specifically itemized cash advance items

contract disclosures

1. legal, cemetery, crematory requirements 2. embalming 3. cash advance items

ftc purpose

1. maintain free and fair competition in US business 2. take action against monopoly, restraint of trade and unfair or deceptive trade practices 3. prevent anti competitive practices in the marketplace as an aid to consumers

obc required disclosures

1. must appear in clear and conspicuous manner 2. optional phrase "in most areas of the country"

funeral rule enforcement program (frop)

1. non litigation alternative for correcting core violations of the rule 2. joint project of ftc and nfda 3. voluntary payment to US treasury 4. nfda led training and competency training 5. five year commitment 6. price lists are reviewed

retention of documents

1. price lists retained by funeral provider for at least one year after date of last distribution 2. contract retained for at least one year from date of arrangements conference 3. documents made available for inspection by commission officials if necessary

mandatory disclosures

1. required disclosures on the gpl 2. placement of disclosures 3. identical wording as given in the rule 4. can include additional information in disclosures, but cannot change or add anything that will modify ftc language

cpl- must offer to those who inquire in person

1. upon beginning discussion of caskets (triggering event) 2. not required for retention

obc must offer to those who inquire in person

1. upon beginning discussion of obc 2. not required for retention

ftc

consists of 5 commissioners appointed by the president of the US for a 7 year term

November, 1972

ftc begins review of current funeral service practices

1976

ftc conducts hearings on the proposed rule in new york, chicago, seattly, los angeles, atlanta, washington, dc

1914

ftc created act of congress

july 19, 1994

ftc funeral industry practices revised rule takes effect

July 1973

ftc initiates "non-public" investigation of funeral service

1964

ftc looks at funeral service and concludes that regulation is best at the state level

1982

ftc promulgates trade regulation rule for funeral service

1977-1979

ftc receives temporary funding to operate as negative legislative sentiment toward ftc emerges.

2008

ftc review of funeral rule closed with no changes

january 1, 1984

ftc rule (portion prohibiting misrepresentation) takes effect

april 30, 1984

full ftc trade regulation rule for funeral industry practices takes effect

separate obcpl is not necessary if

required information is part of gpl

separate casket price list not necessary if

required information is part of the gpl

1938

weller-lea amanedment adds to scope of ftc responsibilities the investigation of unfair or deceptive acts or practices in commerce