Crematory & Cemetery Ops Week 5

Memorial Service

a ceremony commemorating the deceased without the body present

True

When an individual makes pre-need arrangements and gives express approval for embalming at that time, you do not need to get any additional approval to embalm at the time of death

4/30/84

When did the FTC Funeral Rule go into effect?

Outer Burial Container

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

tying arrangements

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

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.

General Price List (GPL)

printed or typewritten list of goods and services offered for sale by a funeral provider with retail prices. GPL is considered the keystone of the Funeral Rule.

Crematory

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

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.

Federal Trade Commission (FTC)

Consists of 5 commissioners appointed by the President of the United States for a seven year term.

Do not have to do anything else

If a consumer does not want to accept or look at the GPL.

False

Permission to embalm may be implied

Commission

Refers to the Federal Trade Commission

Mandatory Disclosures

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

True

The FUNERAL RULE requires you to give consumers accurate, itemized price info. as well as various other disclosures about funeral goods and services

False

The Funeral Rule prevents the offerings of discounts

False

The Funeral Rule requires you to mail callers a GPL

True

The General Price List enables consumers to comparison shop and to purchase, on an itemized basis, only the goods and services they want.

False

The General Price List may be made available to the public at a nominal fee

Transfer of remains

( also referred to as removal) 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.

Viewing

(calling hours, visitation, visiting hours, wake) time set aside for friends and relatives to pay respect for the deceased prior to the funeral service.

Purpose of the FTC

- Is to maintain free and fair competition in U.S. businesses. - They take action against monopoly, restraint of trade, and unfair or deceptive trade practices - They also prevent anti-competitive practices in the marketplace as an aid to consumers.

You must put the required disclosures on your Statement of Funeral Goods and Services selected for:

- Legal, cemetery and crematory requirements - embalming - Cash advance items Use the identical wording as set forth in the Rule Required disclosures must be placed as the Rule dictates in a clear and conspicuous manner. You must give this to the family to keep at the conclusion of arrangements.

General Price List (GPL)

- Must be given to anyone who asks (in person) about funeral goods, funeral services, or the price of either. - It must be offered when you discuss funeral or disposition arrangements, when you discuss the goods or services you offer or the prices of your good and service.

The Rule

- Requires funeral providers must give consumers accurate, itemized price info. - The funeral provider cannot misrepresent legal, cemetery and crematory requirements. - They cannot embalm for a fee without permission, require the purchase of a casket for direct cremation, and require the purchase of certain goods or services as a condition to furnish other goods or services - funeral provider cannot engage in unfair or deceptive practices as described in the Rule. Any violation may result in penalties of up to $40,654 per violation - requires funeral service providers use price disclosures and specific pricing methods, and not adding a handling fee for using an outside casket. The FTC also goes over items that families are required to pay such as basic services of funeral director and staff (non-declinable).

GPL contains Goods and Services offered for sale (16 or more)

- The 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 or may be included in the retail price of caskets - Embalming - Other preparation of the body - Use of facilities and staff for viewing - Use of facilities and staff for funeral service - Use of facilities and staff for memorial service - Use of equipment and staff for graveside service - Transfer of remains to funeral home - Hearse - Limosine - Casket Prices: Price range for caskets offered for sale with statement " A complete list will be provided at the funeral home". Prices of individual caskets - Outer Burial Container Prices Forwarding of remains to another funeral home. Price range for outer burial containers offered for sale with statement " A complete price list will be provided at the funeral home" or prices of individual outer burial containers. - Receiving remains from another funeral home - Direct cremation prices: Purchaser provides container or funeral home provides alternative container. Must include description of services and containers provided - Immediate Burial: Purchaser provides the casket or funeral home provides alternative container

Events that trigger you giving the GPL, face to face meetings

- This could be at the home during the removal at a person's home, hospital, or nursing home if prices are brought up. - You are NOT required to send (mail) callers a GPL - You CANNOT tell consumers that the GPL is available you must actually hand it to them - You MUST give a GPL in ALL preneed situations, even in the situation where a preneed is in place but a change is made (such as adding an item on to the contract. The exception is when you request authorization to embalm (BUT YOU MUST EXPLAIN EMBALMING IS NOT REQUIRED BY LAW, UNLESS IT IS A SPECIAL CASE)

What is FROP?

- This is a multi year compliance training and monitoring program as an alternative to an enforcement lawsuit - NFDA collects a fee from FROP participants for administering the program, maintains records on enrolled funeral homes and makes those available for FTC staff - There are voluntary payments to the U.S. treasury of 0.8% of the funeral home average annual income for the prior three years - The NFDA leads the training and competency training. This is a five year commitment. Your price lists will be reviewed.

Retention of documents

- You are required to keep price lists for one year from the last date you gave them out. - You are required to keep a copy of each completed "Statement of Funeral Goods and Services Selected" for at least one year from the date of the arrangement conference - You must make these documents available to FTC representative's upon request. Also, you must make these documents available to state authorities.

Embalming Requirements/Provisions

- You cannot tell consumers that State of local laws require embalming if that is not true. - If State law requires embalming you need to tell the family that is so but you must also inform the family in writing. This must also go on the GPL. - You cannot charge for embalming without prior permission. Express permission is required. - You must explain on the Statement of funeral goods and services selected the reason that a fee was charged for embalming

Six disclosures must be listed on the GPL

1. The consumer's right to select only the goods and services desired 2. Embalming is not required, except in certain special cases, it is not required by law 3. It must disclose alternative containers description and direct cremation 4. That the basic service fee can include a charge for the services you perform in conducting the arrangement conference, planning the funeral, securing the necessary permits, preparing the notices, and coordinating the cemetery or cremation arrangements 5. Casket Price List - CPL - a complete price list will be provided at the funeral home 6. The Outer Burial Container Price List - OBC - a complete price list will be provided at the funeral home.

False

A face to face meeting, as a triggering event for giving a General Price List, can only occur at the funeral home

Casket handling fees

Charge, fee or surcharge applied to consumers who purchase their casket elsewhere from a source other than the price list/funeral provider.

What's covered on the statement of funeral goods and services

Cost info., disclosures, embalming, caskets, outer burial container, legal and cemetery requirements, preservative and protective value claims, cash advance items

Who receives the statement of funeral goods and services

Every person who sits down to make arrangements with your firm must receive a statement of Funeral Goods and services. You must give consumers who telephone your place of business and ask about your prices or offerings ACCURATE information from your General Price List, Casket Price List, and Outer Burial Container Price List

"The Rule"

FTC Trade Regulation Rule for Funeral Industry Practices becomes known as:

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.

Exigent Circumstances

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

Funeral Rule Enforcement

So how does the FTC enforce the Funeral Rule? 1. Consumer education 2. Consumer complaints 3. Self-enforcement 4. Test shopping sweeps undercover work by FTC staff 5. Funeral Rule Offenders Program (FROP)

State Exemption from the Funeral Rule

State agencies may apply to the FTC for a statewide exemption from the Funeral Rule and it may be granted if: 1. The state requirement applies to the same transactions that the Funeral Rule covers; and, 2. The state requirement provides an overall protection that is as great as; or greater than, the protection provided by the Funeral Rule

False

There are 8 disclosures made on the General Price List

Alternative price lists

Price lists 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.

Package Pricing

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

Form of the document

While there is no specific format required - the categories you use on the form should, generally speaking, correspond to items on the General Price List (GPL) What must be included? 1. Itemized written statement identifying the funeral goods and services selected and the prices of each. 2. Specifically, itemized cash advance items.

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.

Graveside service

ceremony commemorating the deceased at place of final disposition

Effective date

date that the specific price list was put into use

Third party merchandise

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

Funeral goods

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

Cremation

heating process which incinerates human remains. [16 CFR 453.1(e)]

Statement of Funeral Goods and Services Selected

itemized list of goods and services that the consumer has selected during the arrangements conference. The statement allows consumers to evaluate their selections and to make any desired changes.

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

Casket

rigid container which is designed 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

service commemorating the deceased with the body present.

Itemization

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

False

Mr. Smith, your competitor, had the nerve to stop by your funeral home and request a GPL. You do not have to comply with his request

Funeral provider

any person, partnership or corporation that sells or offers to sell funeral goods and funeral 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. A cash advance item is also any item obtained from a third party and paid for by the funeral provider on the purchaser's behalf. Cash advance items may include, but are not limited to: cemetery or crematory services; pallbearers; public transportation; clergy honoria; flowers; musicians or singers; nurses; obituary notices; gratuities; and death certificates.

Telephone price disclosure

Funeral provider must give consumers who call your funeral home and ask about your prices and offerings accurate info. from your GPL, CPL, and OBCPL. You must answer any other questions about your offerings and prices with reading available info. that reasonably answers the questions. Remember! You cannot require callers to give their names, addresses or phone numbers before you give them the requested information. You cannot require consumers to come to the funeral home in person to obtain price info. You do not have to give price or other info. "after business hours" if it is not your normal business practice to do so.

True

General Price Lists are given, for retention, to anyone who inquires about funeral arrangements

FTC and the Cemetery and Crematory

Generally speaking, the FTC Rule does not apply to cemeteries. The Rule would apply if a cemetery offers both funeral services and funeral goods. FTC staff is not of the opinion that "most cemeteries care for and prepare deceased human bodies for burial" Accordingly, the FTC Rule does not apply to cemeteries. A crematory on the other hand, must comply with all requirements of the Funeral Rule if it offers or sells cremation services and any funeral goods such as caskets, alternative containers, or urns.

Important!

If you don't know how much a particular cash advance item will be - make a good faith estimate. But you should be giving a written statement of the actual charges before the final bill is paid

GPL Labeling

Info. that is required to be on the GPL is the Name, address and telephone numbers of the funeral provider (if more than one location the address and telephone number of each branch). It must have the caption "General price list" along with the effective date of the price list.

What is a cash advance item

Items of service or merchandise that are: described to a consumer as a "cash advance," "accommodation" "cash disbursement" or by any similar term or you obtain from the third party and pay for on the consumer's behalf . Each cash advance must be listed separately on the statement along with the price for each item.

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.

Disclosures

The following MUST be placed on the statement and set forth word for word exactly as the rule mandates. 1. Legal requirements: You will only charge the family for the items selected and you will explain any legal, cemetery or crematory requirements in writing. Leave enough space on the form to explain requirement of the families to purchase certain goods or services. Put this information in the statement before it is given to the family. 2. Embalming: You must have express prior approval before embalming. Inferences are not acceptable. You need to leave enough space on the statement to explain the reasons for embalming. Enter this info. before giving it to the family 3. Cash advance Items: If you charge for buying a cash advance item or if you receive and retain a rebate, commission, trade or volume discount for a cash advance item you must make a specific disclosure. You must place this disclosure directly next to the list of itemized cash advances items on your statement and specify those cash advance items to which the disclosure applies.

True

The one non-declinable fee allowed by the Rule is the fee for the basic services of the funeral director and staff

False

You have the option to tell consumers who call the funeral home for price info. to come to the funeral home to obtain such info.

True

You must give out a GPL in all pre-need situations

False

You must give price and other info. to a caller who phones after business hours, even if it is not your normal practice to do so

Really important!!

You must give the family the total cost of the arrangements selected meaning - individual goods and services plus cash advance items

True

You must keep price lists for at least 1 year from the date you last distributed them to customers

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

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.

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.

Triggering event

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

Forwarding of remains

one of the 16 items specified required on the GPL (if the funeral provider offers the service). 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). Funeral Rule 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

Outer Burial Container Price List (OBC PL)

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

Casket Price List (CPL)

printed or typewritten list of the casket and alternative containers normally offered for sale by the funeral provider which do not require special ordering. CPL must include retail price and enough descriptive information to enable consumers to identify the merchandise