FTC Exam

Full FTC funeral rule takes affect

April 30, 1984

Price Lists

CPL- Casket Price List OBCPL- Outer Burial Container Price List

legal requirements disclosure

Charges are only for those items that you selected or that are required. If we are required by law or by a cemetery or crematory to use items, we will explain reasons in writing below

6 Required disclosures on GPL

Choice of goods and services, embalming, alternative containers for direct cremation, basic services fee, casket price list, outer burial container price list.

Documents Required by FTC

GPL, CPL, OBCPL, Statement of goods and services

Can anyone at the funeral home present the GPL?

If a funeral director is not available, employees should be trained to hand the GPL to consumers.

Embalming disclosure

If you selected a funeral home that may require embalming, such as a funeral with viewing, you may have to pay for embalming. You do not have to pay embalming you did not approve if you selected arrangements such as a direct cremation or immediate burial. If we charged for embalming, we will explain why below.

Misrepresentation-Embalming

Represent or state that embalming is required by state or local law Fail to disclose that is embalming is not required by law except in certain cases

The funeral home may not

Represent that state or local law require casket for a direct cremation Represent that a casket is required for direct cremation.

Misrepresentation-Cash Advances

Represent that the price charged for cash advance items is the same as the cost to the funeral provider when not the case. Fail to disclose to persons arranging funeral that the price being charged for a cash advance item is not the same to the funeral provider

Unlawful tying arrangements/ Third Party Merchandise

Service should not be refused to a family because they are buying third party merchandise, F.H can only refuse 3rd party merch if its a safety risk, usually try to offer discount packages to support purchase of merch from funeral home.

Misrepresentation- Legal & Cemetery Requirements

The funeral provider can not represent that federal, state, or local laws or particular cemeteries or crematories require purchase of any funeral goods or services.

Misrepresentation-Preservative & Protective Value Claims

The funeral provider must avoid creating the impression that embalming will indefinitely preserve the body and should not make claims regarding the ability of caskets and vaults.

If an individual wants to modify a preneed contract, does the GPL need to be given?

YES- at the BEGINNING of the discussion.

Is the GPL given for retention

Yes and you can NOT charge a fee for giving this price list to customers or place any conditions on giving the list to customers

May packages include products or services not listed on the GPL?

Yes, an example would be a personalization candle, it's not on the price list

ITEMIZED written list (statement) of the goods and services that the consumer selected during the arrangement conference.

You can not "lump together" the goods and services selected (per Funeral Rule)

casket price disclosures

a complete price list will be provided at the funeral home

FTC helps monitor what?

acts of monopoly, restraint of trade and unfair and deceptive trade practices

Who must comply?

all funeral providers that offer to sell both goods and services to the public

Person

any individual, partnership, corporation, association, government or governmental subdivision or agency, or other entity.

Cash advance items

any item of service or merchandise described to a purchaser as a cash advance accommodation cash disbursement or similar term any obtain item from a third party and paid for by the funeral provider on purchasers behalf pallbearers public transportation clergy honoraria flowers musicians or singers

Funeral provider -

any person, partnership or corporation that sells or offers to sell funeral goods and funeral services to the public.

Who gets the GPL?

anyone who ask in person about funeral goods, services or prices. must give it for retention, must give to everyone

Packages can be offered as long as they

are in addition to the itemized goods and services

you have to provide a completed and signed copy of the statement of goods and service to consumers when?

at the end of the conference regardless of signatures or not

Non-declinable service fee

basic services is the only fee which the consumer cannot decline (unless state or local law requires otherwise). Funeral provider should recover expenses for services, facilities or unallocated overhead in this charge.

CPL doesn't have to list any and all

caskets you order- only those you routinely sale.

casket handling fees

charge, fee or surcharge applied to consumer who purchases their casket elsewhere from a source other than the price list/funeral home

Examples of unlawful tying arrangements/ third party merch.

charging for unloading of casket from outside source- you don't charge Batesville, Matthews, etc so you can't charge casket store. Another example is that you can't require the family to be there for delivery unless you require all families to be there for delivery of casket.

CPL / OBCPL

either be included in the GPL or they can stand alone, Must be given to consumer when discussions begin about caskets or OBC, Must be given to the consumer PRIOR to showing this merchandise.

6 Misrepresentations

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

embalming disclosure

except in certain cases, embalming is not required by law.

Tying arrangements

exist when a seller requires the purchaser of unwanted items/service in order to obtain the desired item/service

16 required itemized prices

forwarding remains, receiving remains, direct cremation, immediate burial, basic service, transfer of remains, embalming, other prep of body, use of facilities for viewing, use of facilities for cemetery, use of facilities for memorial, use of facilities for graveside, hearse, limo, individual casket price, individual outer burial container price

Telephone price disclosure

funeral provider must give consumers who call accurate information from the price lists and answer questions about offerings and prices with readily available information.

Funeral goods

goods which are sold or offered for sale directly to the public for use in connection with funeral services.

permission to embalm does not

have to be written but is it recommended

GPL - Telephone discolosures

if asked by phone you have to answer, you are not required to email, if call is taken late at night or early morning you can tell caller to call during business hours. no required identity of caller, no require to come to funeral home, not refuse to answer questions.

alternative containers disclosures

if you want to arrange a direct cremation you can use an alternative container

Do any states prohibit or restrict the use of packages?

New York Texas Wisconsin

Statement of Funeral Goods and Services Selected

itemized written statement provided for retention to each person who arranges a funeral or other disposition. It must include the goods and services selected and prices paid for each, itemization of cash advance items and the total cost.

Three Disclosures must be on your statement

legal requirements, embalming, cash advance items

Purpose of the FTC

maintain a free and fair competition and prevent anti-competitive practices in tthe market place

Itemization

method of price quotation by which each unit of service and/or merchandise is priced separately.

Funeral Rule prohibits

misrepresentation legal, crematory or cemetery requirements, embalming or a fee without permission, requiring purchase of a casket for direct cremation, consumers to buy certain goods, engaging in other deceptive unfair practices

Info Required on GPL

name/address, phone number, GPL title, Printed/typed, Effective date, Disclosures, Retail prices of goods and services

A funeral home offers a certain package with a certain casket. If the family wants the package, but wishes to purchase a different casket, must the funeral home permit the substitution?

no

Does a funeral package have to include a casket and/or a vault?

no

Does the General Price List need to be given on a removal?

no

If a consumer does not want one or more of the items in the package, must the funeral home provide a credit for the unwanted items?

no

If a funeral home offers packages, must they be listed on the GPL?

no

Free items

none of the 16 specified items required to be separately itemized on the GPL can be listed as free or no charge. Items not required by the rule can be listed as free.

Triggering Events

occurrence of situation that requires certain action (i.e.) the triggering event for giving out the GPL is face-to-face meeting.

if you offer cremation you must

offer alternative containers

Reason for embalming must be explained

on the Statement of Goods and Services (per Funeral Rule)- reason must be sufficient

Forwarding of remains

one of the 16 items specified required on the GPL. This involves services of the funeral provider in the locale where death occurs and preparation for transfer to another funeral provider as selected by the family (consumer). requires package pricing of this service with a description of the components included.

Receiving remains

one of the 16 specified items required on the GPL (if the funeral provider offers the service). This involves services of the funeral provider after initial services have been provided by another firm at the locale of death. Funeral Rule requires package pricing of this service with a description of the components included.

Transfer of remains

one of the 16 specified items required on the GPL; defined as the moving of the dead human body from the place of death to the funeral home or other designated place.

Alternative price list

price list which may be prepared for use in certain limited situations such as children/infants for government agencies to provide for indigent persons for agreements with religious groups burial or memorial societies for members of their group

casket price list

printed or typewritten list of casket and alternative containers normally offer for sale by funeral provider which does not require special ordering. must contain enough description and price info to enable consumer identify merchandise

Outer burial container price list (OBC PL)

printed or typewritten list of outer burial containers normally offered for sale by the funeral provider which does not require special ordering. OBC PL must include retail price and enough descriptive information to enable consumers to identify the merchandise.

funeral home can not charge for embalming id the family selects a funeral where embalming is not required examples

private viewing, direct cremation, immediate burial

Unlawful tying arrangements/ Third Party Merchandise FTC Rule Prohibts what?

providers from charging a fee as a condition of accepting merchandise.

if the consumer wants merch from your funeral home and wants to use another funeral home service you can what?

refuse to sell merch

casket

rigid container which designed for encasement of human remains

Cash advances must be listed

separately

Funeral ceremony

service commemorating the deceased with the body present

Exigent circumstances

situation requiring immediate action or urgency; FTC recognizes that funeral provider might embalm without permission.

A funeral home may only charge for embalming in one of these 3 circumstances:

state or local law requires it, funeral home obtained permission from family, and F.H. was unable to contact family after due diligence, no reason to believe that would not want it , obtains subsequent approval

Mandatory disclosures

statements required by the Rule which cannot be modified or edited and must appear in a clear and conspicuous manner.

Committal service

that portion of the funeral which is conducted at the place of 28 disposition of dead human bodies

Due Diligence

the attention reasonably expected from, and ordinarily exercised by, a person who seeks to satisfy a legal requirement or to discharge an obligation

Statement of Funeral Goods and Services must be retained by

the funeral home for one year after the statement is given to the consumer.

According to the Funeral Rule, GPL's, CPL's, and OBCPL's must be retained by

the funeral home for one year from when they were last used.

Who appoints the comissoners

the president

Basic goods and services disclosure

this fee for our basic services and overhead will be added to the toal cost of the funeral arrangements you select

Viewing

time set aside for friends and relatives to pay respects for deceased prior to the funeral service.

Both the CPL and the OBCPL do not have

to be offered for retention. This is why some funeral homes keep them separated from the GPL

alternative container

unfinished wood box with no ornaments or other non metal receptacle or enclosure, without ornamentation or fixed interior lining, which is designed for the encasement of human remains and which is made of fiberboard, pressed wood

Package pricing

use of a single dollar amount to identify the charge for a group or bundle of goods and/or services.

when should GPL be offered?

when you discuss type of funeral or disposition, specific goods and services, price of your goods and service.

May a funeral home include 'complimentary items' or 'free gifts' in the packages?

yes

May a funeral home offer a package at a discount?

yes

May a funeral home restrict discounted packages only to consumers who purchase caskets from the funeral home?

yes

Must a funeral home provide the GPL when presenting package price information?

yes

Federal trade commission

- agency of federal government created in 1914 to promote free and fair competition by prevention of trade restraints, price fixing, false advertising and other unfair methods of competition.

Services of Funeral Director and Staff

- basic services, not to be included in prices of other categories, that are furnished by a funeral provider in arranging any funeral, such as conducting the arrangements conference, planning the funeral, obtaining necessary permits, and placing obituary notices

Memorial service

- ceremony commemorating the deceased without the body present.

Third party merchandise

- funeral goods consumer purchase from a source other than the price list/funeral provider

What amount can fines reach per violation?

16000

FTC consists of how many commisioners

5

how many years do the commissioners serve?

7

Misrepresentation-Outer Burial Container (OBC)

F.H may not Represent that state or local law or regulations of a cemetery require purchase of an OBC when that is not the case . Fail to disclose to persons arranging funeral that state law does not require OBC

Commission Administers

FTC Regulation Rule, Clayton anti-trust act, fair packaging and labeling act, truth in lending, fair credit reporting, robinson-patman act, magnuson warranty act, cooling off regulation for door to door sales

The funeral rule requirements of "Permission to Embalm"

Federal Law does NOT require embalming. When requesting permission to embalm, FD must state to family that it is not required by law.

Misrepresentation-Casket for Cremation

Funeral homes are required by law to make alternative containers available for direct cremation.

Amended when?

January 11, 1994

Does asking permission to embalm indicate that the GPL must be handed to the family

NO, asking permission to embalm does NOT trigger the Funeral Rule requirements of giving the GPL

If funeral home charges for the cash advances- thisdisclosure has to be on the Statement word-for-word

We charge you for our services in obtaining: