FTC Funeral Rule

What statement must the funeral provider put in the GPL in regards to embalming?

"Except in certain special cases, embalming is not required by law. Embalming may be necessary, however, if you select certain funeral arrangements, such as a funeral with viewing. If you do not want embalming, you usually haev the right to choose an arrangement that does not require you to pay for it, such as direct cremation or immediate burial."

To prevent unfair or deceptive acts or practices in regards to embalming fees, what statement should the statement of goods and services include?

"If you selected a funeral that may require embalming, such as a funeral with viewing, you may have to pay for embalming. You do not have to pay for 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."

To prevent deceptive acts or practices, what statement should be included in the GPL in regards to caskets for cremation?

"If you want to arrange a direct cremation, you can use an alternative container. Alternative containers encase the body and can be made of materials like fiberboard or composition materials (with or without an outside covering). The containers we provide are (specify container)."

In order to prevent deceptive acts or practices in regards to outer burial containers, the GPL should include what statement?

"In most areas of the country, state or local law does not require that you buy a container to surround the casket in the grave. However, many cemeteries require that you have such a container so that the grave will not sink in. Either a grave liner or a burial vault will satisfy these requirements."

In order to prevent deceptive acts and practices in regard to cash advance items, the GPL should include what statement?

"We charge you for our services in obtaining: (specifiy cash advance items)," if the funeral provider makes a charge upon, or receives and retains a rebate, commission or trade or volume discount upon a cash advance item

If the Funeral Rule is violated, penalties may be up to $________________ per violation

$10,000

What two methods are acceptable for stating the non-declinable services fee in the GPL?

1. "This fee for our basic services will be added to the total cost of the funeral arrangements you selected. (This fee is already included in our charges for direct cremations, immediate burials, and forwarding or receiving remains)." 2. "Please note that a fee of (specify dollar amount) for the use of our basic services is included in the price of our caskets. This same fee shall be added to the total cost of your funeral arrangements if you provide the casket. Our services include (specify)."

What specials groups would it be acceptable to have a separate General Price List for?

1. Children and Infants 2. Government Agencies (such as working with local agencies to care for indigent cases) 3. Religious groups and memorial societies

In order to prevent deceptive acts or practices in regards to embalming, funeral providers cannot represent that a deceased person is required to be embalmed for:

1. Direct cremation 2. Immediate burial 3. A closed casket funeral without viewing or visitation when refrigeration is available and when state or loval law does not require embalming

What four items are you required to list regarding minimal services, according to the Funeral Rule?

1. Forwarding of remains 2. Receiving remains 3. Direct cremation 4. Immediate burial

What retail prices (expressed either as a flat fee or as the price per hour, mile, or other unit of computation) is to be included in the general price list?

1. Forwarding of remains to another funeral home, together with a list of the services provided for any quoted price 2. Receiving remains from another funeral home, together with a list of the services provided for any quoted price 3. The price range for the direct cremations offered by the funeral provider, together with: (a.) separate price for the direct cremation where the purchaser provides the container (b.) separate prices for each direct cremation offered including an alternative container (c.) a description of the services and container (where applicable) included in each price 4. The price range for the immediate burials offered by the funeral provider, together with (a.) a separate price for an immediate burial where the purchaser provides the casket (b.) a separate price for each immediate burial offered including a casket or alternative container (c.) a description of the services and container (where applicable) included in that price 5. Transfer of the remains to the funeral home 6. Embalming 7. Other preparation of the body 8. Use of facilities and staff for viewing 9. Use of facilities and staff for funeral ceremony 10. use of facilities and staff for memorial service 11. Use of equipment and staff for graveside service 12. Hearse 13. Limosine

Outer Burial Container List 453.2(b)(3)

1. Give a printed or typewritten list to persons who inquire in person about outer burial container offerings or prices. The funeral provider must offer the list upon beginning discussion of, but in any event before showing the containers. The list must contain at least the retail prices of all outer burial containers offered which do not require special ordering, enough information to identify each container, and the effective date for the prices listed. 2. PLace on the list, however produced, the name of the funeral provider's place of business and a caption describing the list as an "outer burial container price list"

Casket Price List 453.2(b)(2)

1. Give a printed or typewritten price list to people who inquire in person about the offerings or prices of caskets or alternative containers. The funeral provider must offer the list upon beginning discussion of, but in any event before showing caskets. THe list must contain at least the retail prices of all caskets offered which do not require special ordering, enough information to identify each, and the effective date for the price list. 2. Place on the list, however produced, the name of the funeral provider's place of business and a caption describing the list as a "casket price list"

In regards to preservative and protective values, it is deceptive to:

1. Represent that funeral goods or funeral services will delay the natural decomposition of human remains for a long-term or indefinite time 2. Represent that funeral goods have protective features or will protect the body from gravesite substances, when such is not the case

Regarding outer burial containers, it is deceptive to:

1. Represent that state or local laws or regulations, or particular cemeteries, require outer burial containers when such is not the case 2. Fail to disclose to persons arranging funerals that state law does not require the purchase of an outer burial container

In regards to cash advance items, it is deceptive to:

1. Represent that the price charged for a cash advance item is the same as the cost to the funeral provider when such is not the case 2. Fail to disclose to persons arranging funerals that the price being charged for a cash advance item is not the same as the cost to the funeral provider for the item when such is the case

Regarding cremation and caskets, it is deceptive to:

1. Represent that the state or local law requires a casket for direct cremations 2. Represent that a casket is required for direct cremations

Funeral Goods

All products sold directly to the public in connection with funeral services

In order to prevent unfair or deceptive acts or practices in regards to using caskets for cremation, what must a funeral provider make availabe for purchasers to choose?

An alternative container

Person

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

Crematory

Any person, partnership or corporation that performs cremation and sells funeral goods

When did the Funeral Rule go into effect?

April 30, 1984

How long should a funeral provider keep a copy of their most recent general price list?

At least one year after the date of their last distribution to customers

How long should a funeral provider keep a copy of the statement of goods and services used for a funeral?

At least one year from the date of the arrangement conference

Which of the following is NOT required to be listed under Minimal Services on your firm's General Price List? a. Receiving Remains b. Direct Cremation c. Indigent Burial d. Immediate Burial

C. Indigent Burial

How should the casket and outer burial container lists be presented in the GPL?

Either as a range with the statement "a complete price list will be provided at the funeral home" OR as the prices of individual caskets/outer burial containers, disclosed in the manner specified in paragraphs (b)(2)(i) and (b)(3)(i)

T/F: Anyone asking for a copy of a casket price list should be given one for their retention.

False

T/F: Funeral directors are required to send a General Price List to individuals making inquiries over the phone

False

T/F: The Funeral Rule only applies to at-need services

False

T/F: A business that offers goods through one company and services through another would not be covered by the Funeral Rule. Ex: Company A and B are both owned by Big Business. Company A offers funeral goods. Company B offers both kinds of funeral services.

False. As both companies fall under the same business, the entire entity falls under the Funeral Rule.

T/F: Packaged items may be offered in place of itemized prices.

False. Packaged prices may be offered IN ADDITION TO itemized prices.

T/F: The six disclosures made in the GPL can be paraphrased from the Funeral Rule. The wording does not need to be exact.

False. The wording of the disclosures must be the same as that of the FTC Funeral Rule. You may not do anything to change or modify the FTC language.

T/F: Someone who sells ONLY caskets would be covered by the Funeral Rule.

False. This provider only offers goods, so they are not covered by the Funeral Rule.

T/F: You can require a caller to identify themself before giving out pricing information

False. You cannot require callers to give their names, addresses, or phone numbers before you give them the requested information. You can ask that they identify themself, but you must answer their questions even if they refuse to do so.

T/F: When the deceased is removed for transportation to the funeral home, an in-person request at that time for authorization to embalm would trigger the requirement to offer the general price list.

False: When the deceased is removed for transportation to the funeral home, an in-person request at that time for authorization to embalm would NOT trigger the requirement to offer the general price list. This is not required as long as the provider in seeking prior embalming approval discloses that it is not required by law except in special cases, if any. Any other discussion during that time about prices or the selection of funeral goods or services triggers the requireent to provide a GPL.

General Price List 453.2(b)(4)

Give a printed or typewritten price list for retention to persons who inquire in person about the funeral goods, funeral services, or prices of funeral goods or services offered by the funeral provider.

How would a pre-need contract made before 1984 fall under the Funeral Rule?

If the pre-need contract is modified

Unfair or deceptive acts or practices - Section 453.2(a)

In selling or offering to sell funeral goods or funeral services to the public, it is an unfair or deceptive act or practice for a funeral provider to fail to furnish accurate price information disclosing the cost to the purchaser for each of the specific funeral goods and funeral services used in connection with the disposition of deceased human bodies, including at least the price of embalming, transportation of remains, use of facilities, caskets, outer burial containers, immediate burials, or direct cremations, to persons inquiring about the purchase of funerals.

What is a statement of goods and services?

It gives an itemized written statement for retention to each person who arranges a funeral or other disposition of human remains, at the conclusion of the discussion of arrangements

What other formats may the casket price list or outer burial container price lists be in?

Other than written lists, they may appear as notebooks, brochures, or charts if they contain the same information as would the printed or typewritten list.

What pre-need contracts may not be covered by the Funeral Rule?

Pre-need contracts created before 1984

Section 453.2 of FTC Funeral Rule

Price Disclosures

Preventative requirements

Put forward to prevent these unfair or deceptive acts or practices, as well as the unfair or deceptive acts or practices in Section 453.4(b)(1)

What is the only fee for services, facilities, or unallocated overhead that is non-declinable?

The basic services of funeral director and staff

Services of funeral director and staff

The basic services, not to be included in prices of other categories in Section 453.2(b)(4), 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.

What is the key stone of the Funeral Rule?

The general price list

T/F: Funeral Directors are required to provide a separate printed or typewritten Outer Burial Container Price List if they do not list the retail prices of each such container on their General Price List.

True

T/F: In selling or offering to sell funeral goods or funeral services to the public, it is a deceptive act or practice for funeral providers to represent that federal, state, or local laws, or particular cemeteries or crematories, require the purchase of any funeral goods or funeral services when such is not the case

True

T/F: Price lists for Children and Infant Funerals can be listed separately from the funeral home's regular General Price List

True

T/F: The Funeral Rule applies to both pre-need and at-need contracts

True

T/F: The general price list enables consumers to comparison shop and to purchase, on an itemized basis, only the goods and services they want.

True

T/F: You must give the General Price List to anyone who asks, in person, about funeral goods, funeral services, or the prices of such goods and services. This may include competitors, journalists, and representatives of businesses, religious societies, government agencies, or consumer groups.

True

Memorial service

a ceremony commemorating the deceased without the body present

Immediate Burial

a disposition of human remains by burial without formal viewing, visitation or ceremony with the body present, except for a graveside service.

Direct Cremation

a dispostion of human remains by cremation, without formal viewing, visitation, or ceremony with the body present

Casket

a rigid container which is designated for the encasement of human remains and which is usually constructed of wood, metal, fiberglass, plastic, or like material, and ornamented and lined with fabric

Funeral ceremony

a service commemorating the deceased with the body present

The Federal Trade Commission requires which of the following items listed on the General Price List? a. Limousine b. Lead car c. Flower car d. Courier vehicle

a. Limousine

Alternative Container

an unfinished wood box or other non-metal receptacle or enclosure, without ornamentation or a fixed interior lining, which is designed for the encasement of human remains and which is made of fiberboard, pressed-wood, composition materials (with or without an outside covering) or like materials.

Outer burial container

any container which is designated for placement in the grave around the casket including, but not limited to, containers commonly known as burial vaults, grave boxes, and grave liners

Cash advance item

any item of service or merchandise described to a purchaser as a "cash advance", "accommodation", "cash disbursement", or similar term. It is also any item obtained from a third party and paid for by the funeral provider on the purchaser's behalf. These items may include, but are not limited to: cemetery or crematory services, pallbearers, public transportation, clergy honoraria, flowers, musicians or singers, nurses, obituary notices, gratuities, and death certificates.

Funeral provider

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

Funeral services

any services which may be used to: (1) care for and prepare deceased human bodies for burial, cremation or other final disposition; and (2) arrange, supervise or conduct the funeral ceremony or the final disposition of deceased human bodies.

When did the Funeral Rule originally go into effect? a. 1981 b. 1984 c. 1991 d. 1994

b. 1984

Which of the following circumstances allows for a funeral provider to require embalming? a. direct cremation b. immediate burial c. open casket funeral service d. closed casket funeral service

c. open casket funeral service

The General Price List must be offered when you begin to discuss any of the following EXCEPT: a. type of funerl or disposition that you can arrange b. specific goods or services that you offer c. prices of your goods or services d. requesting permission to embalm during a removal

d. requesting permission to embalm during a removal

Funeral goods

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

Commission

refers to the Federal Trade Commission

Funeral Services

services used to care for and prepare bodies for burial, cremation, or other final disposition; services used to arrange, supervise, or conduct the funeral ceremony or final disposition of human remains

Telephone Price Disclosures 453.2(b)(1)

tell persons who ask by telephone about the funeral provider's offerings or prices any accurate information from the price lists described in paragraphs (b)(2) through (4) of this section and any other readily available information that reasonably answers this question.

Who is a funeral provider, according to the Funeral Rule?

A funeral provider sells or offers to sell funeral goods AND both types of funeral services

Cremation

A heating process which incinerates human remains

It is unfair or deceptive for a funeral provider to embalm a body for a fee, except in what 3 circumstances?

1. State or local law or regulation requires embalming in the particular circumstances regardless of any funeral choice which the family might make 2. Prior approval for embalming has been obtained from a family member or authorizing agent 3. The funeral provider is unable to contact a family member or other authorized person after exercising due diligence, has no reason to believe the family does not want embalming performed, and obtains subsequent approval for embalming already performed. In seeking this approval, the funeral provider must disclose that a fee will be charged if the family selects a funeral which requires embalming, and that no fee will be charged if the family selects a service which does not require embalming.

Preventative requirements includes:

1. Telephone Price Disclosure 2. Casket Price List 3. Outer Burial Price List 4. General Price List 5. Statement of Goods and Services Selected 6. Other Pricing Methods

What six disclosures must be made on the General Price List?

1. The consumer's right to select only the goods and services desired 2. Embalming 3. Alternative containers for direct cremation 4. The basic services fee 5. The casket price list 6. The outer burial container price list

What three things must the statement of goods and services include?

1. The funeral goods and funeral services selected by that person and the prices ot be paid for each of them 2. Specifically itemized cash advance items. (These prices must be given to the extent then known or reasonably ascertainable, a good faith estimate shall be given and a written statement of the actual charges shall be provided before the final bill is paid) 3. The total cost of the goods and services selected

What information is required to be included in the general price list?

1. The name, address, and telephone number of the funeral provider's place of business 2. A caption describing the list as a "general price list" 3. The effective date for the price list

Regarding embalming, it is deceptive to:

1. represent that state or local law requires that a deceased person be embalmed when such is not the case 2. Fail to disclose that embalming is not required by law in except in certain special cases, if any

What discussions would prompt the funeral provider to give a person a copy of the general price list?

1. the prices of funeral goods or funeral services 2. the overall type of funeral service or disposition 3. specific funeral goods or funeral services offered by the funeral provider

When was the Funeral Rule revised?

1994