Complying With the Funeral
Rule
Contents
Introduction
Who
Must Comply With the Funeral Rule?
Definition of “funeral
provider”
Definition of “funeral goods”and
“funeral services”
Does the Rule Apply to Pre-Need Arrangements?
The General Price List (GPL)
Who Gets a GPL?
When Should the GPL Be Offered?
What about Phone or Mail Inquiries?
Does the Rule Require the GPL to Be Given
to Keep?
What About the GPL and Pre-need Arrangements?
Information
Required on the GPL
Identifying Information
Required Disclosures on the GPL
Right of Selection
Embalming
Alternative Containers
Professional Services Fee
Casket Price List
Outer Burial Container Price List
Required Itemized Prices on the GPL
Forwarding/Receiving Remains,
Direct Cremation, and Immediate Burial
Basic Services of Funeral Director and
Staff
Transfer of Remains to Funeral Home
Embalming
Other Preparation of the Body
Use of Facilities and Staff for Viewing
Use of Facilities and Staff for Funeral
Ceremony
Use of Facilities and Staff for Memorial
Service
Use of Equipment and Staff for Graveside
Service
Hearse
Limousine
Casket
Outer Burial Container
Alternative
Price Lists
Children and Infants
Government Agencies
Religious Groups and Memorial Societies
The Casket Price List
(CPL): Information and Use
The Outer Burial Container
(OBC) Price List: Information and Use
Statement
of Funeral Goods and Services Selected:
Cost Information and Disclosures
Legal Requirements
Embalming
Cash Advance Items
Telephone Price Disclosures
Misrepresentations
Prohibited by the Rule
Embalming
Casket for Direct Cremation
Outer Burial Container
Legal and Cemetery Requirements
Preservative and Protective Value Claims
Cash Advance Items
Other Misrepresentations
What Consumers Cannot
Be Required to Purchase
Prior Approval for
Embalming
Recordkeeping
Comprehension of Disclosures
State Exemption Provisions
Sample Price Lists
Endnotes
Part 453 — Funeral
Industry Practices Revised Rule
Introduction
These guidelines are intended
to help you, the funeral provider, comply
with the Federal Trade Commission (FTC or
Commis-sion) Funeral Rule. The Funeral Rule
went into effect on April 30, 1984. The
Commission revised the Rule early in 1994;
revisions became effective later that year.
The Funeral Rule requires
you to give consumers accurate, itemized
price information and various other disclosures
about funeral goods and services. In addition,
the Rule prohibits you from:
- misrepresenting legal, crematory, and
cemetery requirements;
- embalming for a fee without permission;
- requiring the purchase of a casket
for direct cremation;
- requiring consumers to buy certain
funeral goods or services as a condition
for furnishing other funeral goods or
services; and
- engaging in other deceptive or unfair
practices.
If you violate
the Funeral Rule, you may be subject
to penalties of up to $10,000 per violation.
These guidelines do not
amend or modify the Rule. They explain the
requirements of the revised Funeral Rule
and discuss how to prepare documents required
by the Rule — the General Price List, the
Casket Price List, the Outer Burial Container
Price List, and the Statement of Funeral
Goods and Services Selected. The guidelines
also include sample price lists and a sample
itemized statement form. These guidelines
represent the FTC staff's view of what the
law requires. They are not binding on the
Commission.
Who Must Comply
With the Funeral Rule?
All "funeral providers"
must comply with the Rule. You are a funeral
provider if you sell or offer to sell both
funeral goods and funeral services to the
public.
Funeral goods
are all products sold directly to the public
in connection with funeral services.
Funeral services
are:
- services used to care for and prepare
bodies for burial, cremation, or other
final disposition; and
- services used to arrange, supervise,
or conduct the funeral ceremony or final
disposition of human remains.
You are a funeral provider
if you sell or offer to sell funeral goods
and both types of funeral services.
You do not have to be a licensed funeral
director and your business does not have
to be a licensed funeral home to be covered
by the Funeral Rule. Cemeteries, crematories,
and other businesses can also be "funeral
providers" if they market both funeral
goods and services.
You must comply with the
Rule even if a particular consumer buys
only goods or only funeral services, but
not both. If you offer to sell both goods
and services, you must comply with the Rule
for every customer. However, you are not
covered by the Rule if you sell only funeral
goods, such as caskets, but not
services relating to the disposition
of remains.
You are covered by the
Rule even if you organize your business
to sell goods through one company and services
through another. If you are a funeral provider,
you cannot avoid being covered by the Rule
by restructuring your business.
Does
the Rule Apply to Pre-Need Arrangements?
The Rule's requirements,
as described on the following pages, apply
to both pre-need and at-need funeral arrangements.
In pre-need situations,
you must comply with all Rule requirements
at the time funeral arrangements are pre-planned.
You also need to comply with the Rule after
the death of the individual who made pre-need
arrangements. If the survivors inquire about
goods or services, alter the pre-planned
arrangements, or are required to pay additional
sums of money, you must give them all relevant
disclosures and price lists. For example,
survivors may be asked to pay additional
amounts if the pre-paid plan does not guarantee
prices at the time of death. In other cases,
survivors may change arrangements specified
in the pre-need plan, adding or subtracting
certain goods or services. In both situations,
the requirements of the Rule apply. You
must give the survivors relevant price lists,
as well as an itemized Statement of Funeral
Goods and Services Selected (see pages 4-5
and 19).
You also must comply with
the Rule if you sell pre-need contracts
on behalf of one or more funeral homes,
but do not yourself provide funeral goods
and services. In such a case, even though
you don't provide the funeral items, you
are an agent of a funeral provider and therefore
are covered by the Rule.
The Rule does not apply
to pre-need contracts entered into before
the Rule went into effect in 1984. However,
if a pre-need contract signed before 1984
is modified after 1984, the modification
triggers all of the Rule's requirements.
Example:
Mr. Green made pre-need arrangements in
1980; he dies in 1994. At the time of his
death, his wife wants to change the casket
specified in the pre-need contract and to
add visitation hours. Because Mrs. Green
is changing the contract after 1984, the
funeral provider must comply with all of
the Rule's requirements, including giving
Mrs. Green a General Price List, showing
her a Casket Price List, and providing her
with an itemized Statement of Goods and
Services Selected.
Note:
In a situation like the above example, you
should check your state law to determine
whether it allows you to alter the terms
of such a contract.
The General Price List
The General PriceList
(GPL) is the key stone of the Funeral Rule.
It must contain identifying information
(see page 6), itemized prices for the various
goods and services that you sell (see pages
9-13), and other important disclosures (see
pages 6-9). The GPL enables consumers to
comparison shop and to purchase, on an itemized
basis, only the goods and services they
want.
Who Gets a GPL?
You must give the General
Price List to anyone who asks,
in person, about funeral goods, funeral
services, or the prices of such
goods or services. You must give the GPL
to such individuals to keep. The request
for information does not have to come from
a consumer or someone who wants to make
funeral arrangements now or in the future.
You must give a GPL to all persons who inquire
about funeral arrangements. This may include
competitors, journalists, and representatives
of businesses, religious societies, government
agencies, or consumer groups.
Note: If
someone asks you about the goods and services
that you sell, you must give that person
a General Price List. If you are uncertain
whether the Rule applies in a particular
situation, it would be sensible to provide
the list.
When Should the GPL
Be Offered?
You do not have to hand
out the General Price List as soon as someone
walks into
your business. But, you must offer the price
list when you begin
to discuss any of the following:
- the type of funeral or disposition
that you can arrange;
- the specific goods and services that
you offer; or
- the prices of your goods and services.
Before giving a GPL to
a bereaved individual, you may offer your
condolences and discuss preliminary matters
like veteran's benefits or death certificates.
The triggering event for
giving out the GPL is a face-to-face
meeting. The face-to-face meeting can occur
anywhere, not just at the funeral home.
For example, you must give out a General
Price List even if the discussion of prices
or arrangements takes place in the family's
home or while removing the deceased from
a hospital or a nursing home. You should
tell your employees to carry extra price
lists with them.
Exception:
You are not required to offer a General
Price List if you remove the deceased
for transportation to the funeral home
and, at that time, only request the authorization
to embalm. When you request authorization
to embalm, however, you also must:
Disclose that embalming
is not required by law (except in special
cases, if relevant); and
Refrain from further
discussion about prices or the selection
of funeral goods or services while you
remove the deceased. Any further discussion
of prices or the selection of goods or
services at this time would trigger the
requirement to provide a GPL.
What
About Phone or Mail Inquiries?
You must give certain
information to people who telephone (see
page 22), but the Rule does not require
you to send callers a General Price List.
Similarly, you do not have to send a GPL
in response to mail inquiries about funeral
goods and services. Of course, you certainly
are free to send a GPL to someone who calls
or writes for information if you wish to
do so. However, if a telephone or mail inquiry
is followed up by a meeting at the funeral
home or elsewhere, you must provide a GPL
at that time.
Note:
Some states require funeral providers
to mail a price list upon request. You
should check to see what the requirements
are in your state.
Does the Rule Require
the GPL Be Given to Keep?
A verbal offer of a GPL
is not enough to comply with the Rule. You
cannot merely tell consumers that a GPL
is available for inspection. You also cannot
show them a GPL in a booklet or binder where
it appears that there is only one copy available
or that the booklet is solely for the funeral
director's use. You must physically offer
consumers a General Price List that they
can keep and take home with them. If the
consumer does not want to accept or look
at the General Price List, you do not have
to do anything else. However, you should
do nothing to discourage customers from
looking at the GPL, such as telling them
that it is unnecessary or difficult to understand.
Note:
You cannot charge a fee for the price
list or place any conditions upon giving
consumers information that the Rule requires
you to give to them. You must give all
required information to anyone who asks,
free of charge.
What About the GPL
and Pre-need Arrangements?
You must give out a General
Price List in all pre-need situations. Because
you may sell different goods and services
on a pre-need basis, your pre-need GPL may
vary from the GPL you use in at-need situations.
However, any General Price List that you
use for pre-need arrangements must include
all required disclosures (see pages 6-9)
and offer goods and services on an itemized
basis (see pages 9-13). You cannot offer
only package funerals to pre-need customers.
In addition, as stated
above (see pages 2-3), you must give a GPL
to anyone who wishes to modify the funeral
goods or services already purchased under
a pre-need contract or to a survivor who
must pay an additional sum because prices
have increased since the time the arrangements
were pre-planned.
Example:
Mr. Stone made pre-need arrangements before
his death. His wife wants to change the
casket and the services that he bought
under the pre-need contract. You must
give Mrs. Stone a General Price List at
the beginning of the discussions and show
her a Casket Price List before she looks
at any caskets.
Information Required
on the GPL
Identifying Information
The General Price List
should be printed or typewritten, and must
contain the following identifying information:
- the name, address, and telephone number
of the funeral provider's place of business,
including (where relevant) the address
and telephone number for each branch;
- the caption: "General Price List;"
and
- the effective date of the price list.
Required Disclosures
on the GPL
The Rule also requires
you to make six disclosures on your General
Price List.(1) These disclosures discuss:
- The consumer's right to select only
the goods and services desired;
- Embalming;
- Alternative containers for direct cremation;
- The basic services fee;
- The Casket Price List; and
- The Outer Burial Container Price List.
Each of these disclosures
is discussed in the following sections.
You must place these required disclosures
on the General Price List exactly as the
Rule provides. (See also Sample 1 GPL at
the end of this publication.)
In addition, you must
use the identical wording given
in the Rule. You cannot edit or paraphrase.
Note:
You can include additional information,
such as a reference to your own state
laws. But, you cannot change the FTC language
or add anything that will modify the FTC
language.
1. Right of Selection
The first disclosure informs
consumers that they have a right to select
only the items they want to buy, besides
a non-declinable basic services fee (see
pages 11-12 for a detailed description of
this fee).(2) You should place this statement
immediately above the prices of the goods
and services that you offer. The statement
should read as follows:
The goods and services
shown below are those we can provide to
our customers. You may choose only the
items you desire. However,
any funeral arrangements you select will
include a charge for our basic services
and overhead. If legal or other
requirements mean you must buy any items
you did not specifically ask for, we will
explain the reason in writing on the statement
we provide describing the funeral goods
and services you selected.
You must include the third
sentence of the disclosure, indicated in
bold-face above, if customers cannot decline
the basic services fee. You may add the
phrase "and overhead" after the
word "services," as shown above,
if the fee includes the recovery of overhead
costs.
2. Embalming
The second disclosure
tells consumers that the law does not require
embalming.(3) The statement should read
as follows:
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
have the right to choose an arrangement
that does not require you to pay for it,
such as direct cremation or immediate
burial.
You do not need to include
the phrase, "except in certain special
cases," indicated in bold-face above,
if state or local law in the area where
you do business does not require embalming
under any circumstances.
If you want to add information about state
law requirements, you can do so after the
FTC disclosure. You should place this disclosure
in immediate conjunction with the price
for embalming.
Note:
"In immediate conjunction" means
that the embalming disclosure must appear
directly next to the price for embalming.
You should not put the disclosure on a
separate page or anywhere else on the
GPL apart from the embalming price. (See
also Sample 1 GPL at the end of this publication.)
3. Alternative Containers
The third disclosure informs
consumers that they may use alternative
containers (see the revised Rule for a full
definition of this term) for direct cremations.(4)
This disclosure must read as follows:
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
containers).
You should place this
disclosure in immediate conjunction with
(directly next to) the price range for direct
cremation. At the end of the last sentence,
you should describe the specific kind of
container(s) that you offer. If you don't
arrange direct cremations, you don't need
to include this disclosure on the GPL.
4. Basic Services Fee
The fourth disclosure
tells consumers about any "basic services
fee" (the fee for the professional
services of the funeral director and staff)
that you will add to the total cost of the
funeral arrangements.(5) This basic services
fee could include a charge for the services
you perform in conducting the arrangements
conference, planning the funeral, securing
the necessary permits, preparing the notices,
and coordinating the cemetery or crematory
arrangements. This fee also may include
overhead that you have not allocated elsewhere.
You can include this fee on your General
Price List in one of two ways:
Option 1: If you list
a separate basic services fee and the charge
is non-declinable (the consumer does not
have the option of declining the charge),
you must provide the following disclosure:
This fee for our basic
services and overhead
will be added to the total cost of the
funeral arrangements you select. (This
fee is already included in our charges
for direct cremations, immediate burials,
and forwarding or receiving remains.)
If you decide on Option
1, this disclosure must appear together
with the price for the basic services and
with a description of the services you include
for that price. (You cannot place this disclosure
on a separate page or anywhere else on the
GPL apart from the basic services price.)
If this basic services fee is non-declinable,
the price also must include all charges
for the recovery of overhead that you have
not allocated elsewhere. In this situation,
the first sentence of your disclosure can
include the phrase "and overhead"
after the word "services,"
as shown above.
Option 2: Instead of charging
a separate basic services fee, you can include
the services fee in your casket prices.
With this alternative, you must include
the following disclosure:
Please note that a
fee of (specify dollar amount)
for the use of our basic services and
overhead 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).
If you decide on Option
2, the fee should include all charges for
the recovery of overhead costs not allocated
elsewhere, and you may add the phrase "and
overhead" after the word
"services" in the first
sentence, indicated in bold-face above.
The disclosure must appear on the GPL together
with the prices for the individual caskets
or together with the casket price range
if you have a separate Casket Price List.
5. Casket Price List
The fifth disclosure tells
consumers that a Casket Price List is available.(6)
You may list casket prices either on the
General Price List or on a separate "Casket
Price List." If you use a separate
Casket Price List, your GPL should state
the range of prices for the caskets you
sell, together with the following disclosure:
A complete price list will be provided
at the funeral home.
6. Outer Burial Container
Price List
The sixth disclosure informs
consumers that an Outer Burial Container
Price List is available.(7) Again, you can
either put the prices for the outer burial
containers on your General Price List, or
you can provide a separate "Outer Burial
Container Price List." If you use a
separate price list, your GPL should state
the range of prices for the outer burial
containers you sell, together with the following
disclosure: A complete price list
will be provided at the funeral home.
If you put the prices
for the outer burial containers on your
General Price List, you also must include
the following disclosure in immediate conjunction
with (directly next to) the outer burial
container prices.
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.
If instead you provide a separate price
list for outer burial containers, then you
must include the above disclosure on your
Outer Burial Container Price List (see page
17). You don't have to include the phrase,
"in most areas of the country,"
indicated in bold-face above, in the disclosure
if your state or local law does not require
a container to surround the casket in the
grave.
Required Itemized Prices
on the GPL
The Rule requires you
to itemize the prices for certain goods
and services so consumers may choose only
those elements of a funeral that they want.
You must list the following 16 specified
items of goods and services on the GPL,
together with the price for each item:(8)
- Forwarding of remains
to another funeral home;
- Receiving remains
from another funeral home;
- Direct cremation;
- Immediate burial;
- Basic services of
funeral director and staff, and overhead;
- Transfer of remains
to funeral home;
- Embalming;
- Other preparation
of the body;
- Use of facilities
and staff for viewing;
- Use of facilities
and staff for funeral ceremony;
- Use of facilities
and staff for memorial service;
- Use of equipment
and staff for graveside service;
- Hearse;
- Limousine;
- Either individual
casket prices or the range of casket prices
that appear on the Casket Price List; and
- Either individual
outer burial container prices or the range
of outer burial container prices that appear
on the Outer Burial Container Price List.
You can list these items
in any order you want. You only have to
list the items that you actually offer.
If you do not offer one or more of the 16
items, you need not list those items on
the General Price List. In addition to these
16 items, you also may list other items
that you offer, such as acknowledgement
cards and cremation urns. You also may provide
prices for package funerals on your GPL.
However, you must offer any package funerals
in addition to and not in place
of the required itemized prices.(9)
The itemized prices
on your General Price List, as well as your
Casket Price List and Outer Burial Container
Price List, should be accurate and up-to-date.
These prices should reflect the prices that
you actually charge your customers.
Of course, you can offer
a discount when there are special circumstances,
such as arrangements for a friend or relative
or a family that otherwise could not afford
your services. The Rule does not prevent
you from doing this. However, you should
not inflate the prices on any of your price
lists in order to offer all or most of your
customers a discount. In that case, the
"discounted" prices would be the
accurate prices and should be reflected
on the price lists.
Items 1-4: Minimal
Services
Four items that the Rule
requires you to list are: (1) forwarding
of remains; (2) receiving remains; (3) direct
cremation; and (4) immediate burial. Unlike
the rest of the goods and services that
you must list on the GPL, the prices for
these four items must include any fee that
you will charge consumers for the basic
professional services of the funeral director
and staff.
Example: Ms. James wants
to arrange an immediate burial for her father.
In addition, she chooses acknowledgement
cards, use of a limousine, and a graveside
service. You should charge her the fee for
an immediate burial plus the fees for the
other items that she wants. But, you should
not charge her an additional non-declinable
basic services fee. A charge for
your basic services is already included
in the price for the immediate burial.
The required disclosure about the basic
services fee (see pages 11-12) informs the
consumer of this fact.
For forwarding
of remains and receiving
remains, the GPL should list
one price for each of these items and describe
all services you will provide for the quoted
price. The prices for these items should
include all charges relating to each service,
including any basic services fee and any
facilities or equipment fees.
For direct
cremations, your GPL must
state a price range, along with the required
disclosure about the availability of an
alternative container (see page 7), then
list each of the following options within
the range:
- one price where the
consumer provides the casket or container;
and
- a separate price for
each direct cremation offered where you
provide an alternative container. The Rule
requires you to offer an alternative container
for use in direct cremations if you provide
direct cremations. (See pages 23-24.)
You also must describe
in the GPL the services and container provided
for each price. If you wish, you also may
list other options, such as direct cremation
with a memorial service or direct cremation
with scattering of ashes.
The price of the actual
cremation of the deceased may or may not
be included in your price for direct cremation.
If you own a crematory, it would be appropriate
to include the cremation charge in this
fee. However, if you use a crematory that
someone else owns, you may treat this charge
as a cash advance item. In that case, you
should make clear to the customer that there
will be an added charge by the crematory.
For immediate
burials, you must give a price
range, together with each of the following
separate options within the range:
- one price where the
purchaser provides the casket; and
- a separate price for
each form of immediate burial offered where
you provide a casket or alternative container.
(You are not required to make an alternative
container available for this purpose. However,
you may choose to offer this option.)
You also must describe in the GPL the services
and container provided for each price. If
the immediate burial option is available
with any casket on your Casket Price List,
the General Price List can simply state
the price of the service and refer the customer
to the Casket Price List for casket prices.
Item 5: Basic
services of funeral director and staff (and
overhead)
The charge for services
of funeral director and staff is a fee for
the basic services that you furnish in arranging
any funeral.(10) This is the "basic
services fee" that is discussed in
the Required Disclosures section. If the
customer cannot decline this fee, the disclosure
that appears on pages 7-8 is required.
This basic services fee
should include services that are common
to virtually all forms of disposition or
arrangements that you offer, such as conducting
the arrangements conference, securing the
necessary permits, preparing the notices,
sheltering of remains, and coordinating
the arrangements with the cemetery, crematory,
or other third parties. The basic services
fee should not include charges related to
other items that must be separately listed
on the General Price List and that the customer
may decline to purchase.
Note:
You should include any charges for the ordinary
sheltering of remains by your funeral home
in this basic services fee. However, you
can list a separate charge for sheltering
of remains if: 1) a significant percentage
of your customers do not use the funeral
home to hold the remains at any point, or
2) you receive a request to hold the remains
for an unusually long period of time.
The basic services fee
also may include overhead from various aspects
of your business operation, such as the
parking lot, reception and arrangements
rooms, and other common areas. It also may
include insurance, staff salaries, taxes,
and fees that you must pay. Alternatively,
instead of including all overhead in your
basic services fee, you can spread the overhead
charges across the various individual goods
and services you offer. As a third alternative,
you can combine the first two approaches:
spread some portion of the overhead charges
across the individual items, while including
the remainder of such charges in your basic
services fee.
Note: These are the only
ways to recoup overhead costs. In addition,
if this basic services fee is non-declinable,
the fee must include any charges for overhead
that have not been allocated to the other
goods and services.
You have two options for
listing your basic services fee on the General
Price List.
Option 1: You may list
a separate price for the basic services
of the funeral director and staff, together
with a list of the principal services provided
for the price and the required disclosures
(see pages 7-8). If consumers cannot decline
this fee, you should include in this separate
price all charges for "unallocated
overhead" — that is all overhead not
distributed among the other items listed
on the GPL.
Option 2: Instead of charging
a separate basic services fee, you may include
the fee in your casket prices. With this
alternative, you must include the appropriate
disclosure (see page 8) on the General Price
List, together with the prices for the individual
caskets or with the casket price range (if
you have a separate Casket Price List).
This fee also must include all charges for
the recovery of unallocated overhead. As
the disclosure indicates, you must specify
the amount of the basic services fee that
is included in the price of the caskets.
If the customer provides a casket obtained
elsewhere, that same basic services fee
must be added to the total cost of the arrangements
selected.
The Rule expressly states
that the basic services fee is the only
non-declinable fee allowed for services,
facilities, or unallocated overhead, unless
state or local law requires otherwise. Other
than the basic services fee, you cannot
charge any separate fee for overhead. Charging
a second non-declinable fee, such as a "basic
facilities fee" or a "casket handling
fee," in addition to the basic services
fee would violate the Rule. Moreover, you
cannot list fees for "additional services"
of the funeral director and staff, if those
fees should be included in the basic services
fee or in one of the other items required
to be listed on the GPL.
Example: You have a non-declinable
fee for the basic services of funeral director
and staff. You also list the following fee
on your General Price List: Additional Services
of the Funeral Director and Staff. This
charge includes: a) coordinating and directing
funeral ceremony; b) paying competitive
salaries to employees; c) providing 24 hour
on-call service to each family; d) maintaining
funeral service licensing; and e) complying
with federal and state codes and regulations.
This fee for additional
services violates the Rule. All of the charges
listed should be included elsewhere on the
GPL. You should include charge (a) for coordinating
and directing the funeral ceremony in the
separate charge for a funeral ceremony.
(See the discussion of this charge on page
9.) The other items, (b) through (e), relate
to basic overhead. You either should include
such charges in the basic services fee or
allocate these costs among all the items
listed on the GPL.
Items 6 - 16
You must list the following
items separately with their respective prices.
The charge for each item should include
all service fees and any equipment or facility
charges for providing that particular good
or service. (You will not, however, include
any portion of the "basic services
fee," discussed above, in any of these
items.)
Transfer of remains
to funeral home. You can choose
any pricing method, such as a flat fee,
an hourly charge, or a mileage charge. For
example, you can charge a flat fee with
or without an additional mileage charge
for distances beyond a certain specified
radius.
Embalming.
Your price for embalming should include
use of the preparation room, as well as
the professional services, equipment, and
materials involved in performing embalming.
In addition, as discussed on page 7, you
must tell consumers that the law does not
require embalming.
Other preparation
of the body. This charge should
include such services as cosmetic work to
prepare the deceased for viewing. Under
this category, you can also show a price
for washing and disinfecting when that procedure
is used instead of embalming.
Use of facilities
and staff for viewing. You may
charge a flat fee or an hourly fee for the
use of your facilities for viewing. Your
price for a viewing should include charges
for both the services of staff and the facilities
used in connection with a viewing. You should
not list two separate charges relating to
a viewing, such as one for the facilities
and another for the staff services. However,
if you provide staff services for viewing
held at another facility, such as a church
or a home, you should list a separate fee
for such services. (In this situation, a
facilities charge would not be appropriate
because your own facilities are not being
used.)
Use of facilities
and staff for funeral ceremony.
The charge for a funeral ceremony, that
is, a commemorative service with the body
present, at the funeral home should include
both the use of facilities and the necessary
staff services. You should not list two
separate charges relating to a funeral ceremony,
such as one for the facilities and another
for the staff services. However, if you
provide staff services for a funeral ceremony
at another facility, such as a church, you
should list a separate fee for such services.
Use of facilities
and staff for memorial service.
This is a charge for a commemorative service
without the body present. The charge should
include both the use of facilities and the
staff services. You should not list two
separate charges relating to a memorial
service, one for the use of facilities and
another for the staff services. However,
if you provide staff services for a memorial
service at another facility, such as a church,
you should list a separate fee for such
services.
Use of equipment
and staff for graveside service.
Some families may choose to have a graveside
service instead of a funeral ceremony at
the funeral home. Your charge for this service
should include both staff services and any
equipment you may provide (such as a tent
and chairs). You should not list two separate
charges relating to a graveside service,
one for equipment and another for staff
services. If your charge for a funeral ceremony
normally includes a committal service at
the grave following the funeral, you can
continue this practice, or you may offer
a separate charge for a committal service
following a funeral ceremony. The separate
charge for a graveside service is intended
for those situations where there is no funeral
ceremony at the funeral home or elsewhere.
Hearse.
You can use any pricing method for the use
of a hearse, such as a flat fee, an hourly
charge, or a mileage charge. For example,
you can charge a flat fee with or without
an additional mileage charge for distances
beyond a certain specified radius.
Limousine.
You can use any pricing method for the use
of a limousine, such as a flat fee, an hourly
charge, or a mileage charge. For example,
you can charge a flat fee with or without
an additional mileage charge for distances
beyond a certain specified radius.
Casket prices.
You can list casket prices in either of
two ways: (1) you can list a casket price
range, with the disclosure about the availability
of the Casket Price List (see page 8); or
(2) you can list the prices of individual
caskets on your General Price List.
Outer burial container
prices. As with casket prices,
you can list outer burial container prices
in either of two ways: (1) you can list
an outer burial container price range, with
the relevant disclosure about the Outer
Burial Container Price List (see pages 8-9);
or (2) you can list the prices of individual
containers on your General Price List.
Alternative Price
Lists for Special Groups
In certain limited situations,
discussed immediately below, you may use
alternative price lists.
Remember: Even if you use
alternative price lists, you still must
comply with all Rule provisions, including
mandatory disclosures and itemized prices.
1. Children and
Infants
You can set different
prices for funeral arrangements for children
and infants. You can list the different
fees in two ways. You can place these items
on your General Price List, Casket Price
List and Outer Burial Price List, along
with your regular offerings; or you can
prepare separate price lists for these arrangements.
If you prepare separate price lists, you
need not give them out to anyone except
those persons inquiring about a funeral
for a
child or an infant.
2. Government
Agencies
Some funeral providers
enter into agreements with government agencies
to provide funeral arrangements for indigent
persons (or other persons entitled to a
government benefit). When entering into
such arrangements, you must follow all Rule
requirements, including giving price lists
to the government agent at the time you
make or discuss such arrangements. You can
add the prices for these special situations
to your regular price list or prepare a
separate price list for these arrangements.
If you prepare a separate price list, you
need not make it available to anyone except
the government agency or persons who qualify
for the special arrangements.
Some government agencies
choose to contract for funeral arrangements
on a package basis. You can offer funeral
arrangements to anyone — including a government
agency — on a package basis, as long as
the funeral packages are offered in addition
to, not in place of, itemized prices.
When qualifying persons
inquire about these package funeral arrangements,
you still should provide the GPL, with itemized
prices and disclosures, and comply with
all other Rule requirements at this time.
Note: You should check
your state laws to determine whether arrangements
handled as part of an agreement with a government
agency can be supplemented or modified by
qualifying persons.
3. Religious Groups
and Memorial Societies
Some funeral providers
enter into agreements with religious groups,
burial societies, or memorial societies
to arrange funerals for their members at
special prices. You are free to enter into
such arrangements, but you must still comply
with the Rule's requirements. You must provide
price lists to representatives of these
groups when they inquire about funeral arrangements
on behalf of their members. In addition,
if an individual group member inquires in-person
about funeral arrangements, you must provide
the individual with your price lists. Even
if a member chooses a package available
only to society members, the member must
have the opportunity to look at your price
lists. You can either have separate price
lists for qualifying members or include
such prices on your regular price lists.
The Casket Price List:
Information and Use
If you do not list the
retail price of each casket on your General
Price List, you must prepare a separate
printed or typewritten Casket Price List
(CPL).(11)
Information to be Included
The CPL must include the following basic
information:
- the name of your business;
- the caption: "Casket
Price List;"
- the effective date for
the Casket Price List; and
- the retail price of
each casket and alternative container that
does not require special ordering, with
enough information to identify it.
You must give enough descriptive
information about each casket on the CPL
to enable consumers to identify the specific
casket or container and understand what
they are buying. For example, the CPL could
describe the exterior appearance (including
the gauge of metal or type of wood), the
exterior trim, and the interior fabric.
You also may give any other information,
such as a photograph or manufacturer name
and model number. However, a photograph
or model number alone is not a sufficient
description under the Rule.
You need list only those
caskets that you usually offer
for sale that do not require special ordering,
as well as the alternative container(s)
you offer for direct cremation. "Special
ordering" means purchasing a casket
or container that is not in stock and not
part of your regular offerings to your customers.
Except for the requirement that you make
an alternative container available if you
offer direct cremation, the Rule does not
require you to offer any particular caskets
or alternative containers. However, both
caskets and alternative containers should
be listed on the CPL. You should not have
a separate list for alternative containers.
The Rule does not require
you to list the caskets or containers that
you offer in any particular format or order.
The Casket Price List can be in any form,
including in a notebook or on a chart, as
long as it contains the required information,
displayed in a clear and conspicuous manner.
Moreover, you do not have
to include customized caskets on your CPL,
or list caskets that you keep in your inventory
to fill pre-existing, pre-need contracts,
but which you no longer regularly offer
for sale. Nor is it necessary to prepare
a new price list if a casket or container
is temporarily out-of-stock. You can simply
tell the consumer which casket is not available
when you give the consumer the CPL. Also,
if a particular casket is available in a
variety of interior materials and designs
or exterior hardware and finishes, you can
simply note that fact on the Casket Price
List; you need not list each variation separately.
(See also Sample 2 CPL at the end of this
publication.)
Using the CPL
You must show the Casket
Price List to anyone who asks in person
about the caskets or alternative containers
that you offer or inquires about their prices.
You must offer the CPL when
you begin discussing caskets or alternative
containers — but before showing these items.
Consumers must be able to look at the price
list before discussing their options or
seeing the actual caskets.
Note:
Consumers should not first learn of casket
prices by entering the casket showroom and
reading price cards placed on individual
caskets or by having the funeral director
recite such information orally.
You can use individual
price cards, but only in addition to a Casket
Price List. Unlike the General Price List,
you do not have to give the consumer a Casket
Price List to keep. However, you may do
so if you wish.
The Rule does not require
that you display the caskets in any specific
manner. (Note, however, that many states
have regulations regarding the manner of
display.) In fact, the Rule does not require
that you display any caskets. Some funeral
providers present their selections through
a book containing photographs of the various
caskets offered for sale. In this case,
you must incorporate in the book all the
information required for the CPL (see page
15), including the heading "Casket
Price List."
If you use a manufacturer's
or supplier's casket showroom outside of
the funeral home, you must offer the CPL
when the discussion of caskets begins. If
you begin discussing caskets in your place
of business, you must offer the Casket Price
List at that time. However, if you do not
begin discussing caskets until you arrive
at the manufacturer's or supplier's showroom,
you do not have to show a CPL until you
arrive and the discussion begins.
In addition to using a
CPL as described above, you must show a
Casket Price List to anyone who wishes to
modify the particular casket already purchased
under a pre-need contract.
Example: Ms. Todd's father
entered into a pre-need contract in 1989.
If Ms. Todd chooses to upgrade the casket
provided under the pre-need contract or
inquires about other casket offerings, you
should show her a CPL.
The
Outer Burial Container Price List: Information
and Use
If you sell outer burial containers and
do not list the retail price of each such
container on your General Price List, you
must prepare a separate printed or typewritten
Outer Burial Container Price List (OBC Price
List).(12) The term "outer burial container"
refers to any container designed to be placed
around the casket in the grave. Such containers
may include burial vaults, grave boxes,
and grave liners.
Information to be Included
on the OBC Price List
The OBC Price List must
contain the following basic information:
- the name of your business;
- the caption: "Outer
Burial Container Price List;"
- the effective date of
the price list;
- the retail price of
each outer burial container you offer that
does not require special ordering, with
enough information to identify the container;
and
- the following disclosure
(discussed earlier on pages 8-9):
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.
You do not have to include the phrase "in
most areas of the country" in the disclosure
if your state or local law does not require
a container to surround the casket in the
grave.
You must give enough descriptive
information about each outer burial container
in your OBC Price List to enable consumers
to identify the specific container. You
need list only those containers that you
usually offer for sale and that do not require
special ordering. "Special ordering"
means purchasing an outer burial container
that is not in stock and not part of your
regular offerings to your customers. However,
the Rule does not require you to offer any
particular outer burial containers; in fact,
it does not require you to sell any outer
burial containers.
The Rule does not require
listing the containers that you offer in
any particular order. The OBC Price List
can be in any form, including in a notebook
or on a chart, as long as it contains the
required information, including the heading
"Outer Burial Container Price List,"
displayed in a clear and conspicuous manner.
You do not have to list
containers that you keep in your inventory
to fill pre-existing pre-need contracts,
but which you no longer regularly offer
for sale. Nor is it necessary to prepare
a new price list if a container is temporarily
out-of-stock. You can simply tell the consumer
which container is not available when you
give the consumer the OBC Price List. (See
also Sample 3 OBC Price List at the end
of this publication.)
Using the OBC Price
List
You must show this price
list to all persons asking about outer burial
containers or their prices. You must offer
this price list when you begin
to discuss outer burial containers, but
before showing the containers.
Consumers must be able to look at the price
list before discussing their options or
seeing the actual containers. (The Rule
does not require that you display outer
burial containers in any specific manner.
Note, however, that many states have regulations
regarding the manner of display.)
Again, it is not enough
for you to tell consumers about price information
or to place price cards on top of individual
containers or models of containers. You
can use individual price cards, but only
in addition to an OBC Price List. Unlike
the GPL, you do not have to give the OBC
Price List for retention. However, you may
do so if you wish.
Some funeral providers
present their outer burial container selections
through a book containing photographs of
the various containers offered for sale.
If you choose this approach, you must incorporate
all the information required for the OBC
Price List (see page 17) into the book.
In addition to using an
OBC Price List as described above, you must
show this price list to anyone who wishes
to modify the particular container already
purchased under a pre-need contract.
Statement of Funeral Goods
and Services Selected: Cost Information
and Disclosures
The Statement of Funeral
Goods and Services Selected (Statement)
is an itemized list of the goods and services
that the consumer has selected during the
arrangements conference.(13) The Statement
allows consumers to evaluate their selections
and to make any desired changes.
The Rule does not require
any specific form, heading or caption on
the Statement. The information required
on the Statement, described below, can be
included on a contract or any other document
that you give to customers at the conclusion
of the arrangements discussion. The categories
of goods and services listed on the Statement
(or other similar document) should generally
correspond to the items listed on the GPL,
so that customers can easily compare the
two documents.
You must give each consumer
a completed Statement at the end of the
arrangements discussion. If arrangements
are made in-person, you should give the
Statement at this time. Giving a consumer
a copy of the Statement at the funeral or
mailing it to the consumer at some later
date does not meet the requirements of the
Rule.
Note: The Rule does not
address the manner or timing of payment.
That is between you and the customer.
If arrangements are made
over the telephone, you should give the
consumer the Statement at the earliest possible
date.
Example:
On Wednesday evening, Mrs. Shelley calls
you to make funeral arrangements for her
father and tells you that she will come
to the funeral home on Thursday morning
to finalize such arrangements. When Mrs.
Shelley arrives the next morning, you should
give her the required GPL and confirm the
arrangements made. Then, once you finalize
the arrangements, you should give Mrs. Shelley
the Statement.
If a consumer makes all
funeral arrangements by telephone, you should
make a reasonable attempt to give a completed
Statement to the consumer before a final
disposition of the remains occurs. If the
consumer does not visit the funeral home
in person before the final disposition,
you should still give or send a completed
Statement to the consumer as soon as possible.
The Rule requires you
to include cost information and specific
disclosures on the Statement.
Cost Information
You should list all of
the individual goods and services that the
consumer will purchase, together with the
price for each item. You cannot simply lump
together goods and services that are listed
separately on the GPL.
Example: Your Statement
would violate the Rule if it listed only
three broad categories for "Services,"
"Facilities," and "Automotive
Equipment."
You may still offer funeral
packages, as long as they are offered in
addition to, not in place of, itemized
prices. If the consumer selects a package
(after you offer itemized prices), your
Statement should describe the package, listing
individually each of the goods and services
included in the package, and state the package
price.
You also must list each
cash advance item separately on the Statement,
together with the price for each item. Cash
advance items are 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 a third
party and pay for on the consumer's behalf.
(See also cash advance disclosure on below.)
Cash advance items may
include such things as cemetery or crematory
services, pallbearers, public transportation,
clergy honoraria, flowers, musicians or
singers, nurses, obituary notices, gratuities,
and death certificates.
If you don't know the
price of a particular cash advance item,
you should enter a good faith estimate.
However, you should give a written statement
of the actual charges before the final bill
is paid.
Finally, you must give
the consumer the total cost of the arrangements
selected (individual goods and services
plus cash advance items).
Disclosures
You must place the following three disclosures
on your Statement. They should be set out,
word-for-word, exactly as the Rule prescribes.
1. Legal Requirements
The first disclosure states
that you will charge consumers only for
the items they have selected and that you
will explain any legal, cemetery, or crematory
requirements in writing.(14)
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 any items, we will explain the reasons
in writing below.
The form should leave
enough space for you to identify and explain
in writing any legal, cemetery, or crematory
requirement that compels the consumer to
purchase a specific funeral good or service.
You should enter this information on the
Statement before it is given to the customer.
2. Embalming
The second disclosure
relates to embalming and the need for prior
approval.(15)
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.
The form should leave
enough space for you to explain the reason
for embalming. You should enter this information
on the Statement before giving it to the
customer.
3. Cash Advance Items
The third disclosure relates
to your charges for your services in buying
cash advance items. If you charge for purchasing
a cash advance item, or if you receive and
retain a rebate, commission, or trade or
volume discount for a cash advance item,
you must make the following disclosure:(16)
We charge you for our services in obtaining:
(specify cash advance items).
You must place this disclosure
in immediate conjunction with (directly
next to) the list of itemized cash advance
items on your Statement and specify those
cash advance items to which the disclosure
applies. You should not put the disclosure
on a separate page or elsewhere on the Statement
apart from the list of itemized cash advance
items. (See also Sample 4 Statement at the
end of this
publication.)
Telephone Price
Disclosures
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. You also
must answer any other questions about your
offerings and prices with any readily available
information that reasonably answers the
question.(17)
Note: You cannot require
callers to give their names, addresses,
or phone numbers before you give them the
requested information. You can ask callers
to identify themselves, but you still must
answer their questions even if they refuse
to do so. You cannot require consumers to
come to the funeral home in person to get
price information.
You can use an answering
machine or answering service to record incoming
calls. However, you must respond to questions
from callers on an individual basis.
Example: Your answering
machine can have a message telling consumers
to call a specified number during business
hours for information about prices and offerings.
You need to provide the requested information
when consumers call during those hours,
or, you can have an answering machine or
answering service take consumers' names
and phone numbers so that you can return
the calls at your earliest convenience.
You may have an employee
answering your phones who can respond to
easier questions regarding your offerings
and prices by referring to the printed price
lists, but who refers more difficult questions
to you. If you are unavailable when the
call comes in, the employee can take a message
so that you can return the call later.
You do not have to give
price and other information after business
hours if it is not your normal practice
to do so. You can tell consumers who call
during non-business hours that you will
provide the information during regular business
hours. However, if a consumer calls after
hours to inquire about an at-need situation,
and it is your practice to make funeral
arrangements during non-business hours,
you should provide price or other information
the consumer requests.
If you are in the middle
of one arrangements conference when another
family calls about your offerings, you can
take a message and return the call at a
later time.
Misrepresentations Prohibited
by the Rule
The Funeral Rule prohibits specific misrepr
esentations in six areas.(18)
1. Embalming
You cannot tell consumers
that state or local law requires embalming
if that is not true. If state law does require
embalming, you may tell the family that
embalming is required due to the specific
circumstances.
Example: Your state law
requires either refrigeration or embalming
after a certain period of time. If you have
refrigeration facilities available, you
must give the consumer the option of either
refrigeration or embalming.
You also must tell the
consumer in writing that embalming is not
required by law except in special circumstances,
if relevant. You do this by including on
your GPL the mandatory embalming disclosure
discussed earlier on page 7.
Note: You must make this
disclosure to all consumers, even if embalming
is necessary.
Unless state or local
law requires embalming, you may not tell
consumers that embalming is required for
practical purposes in the following situations:
- When the consumer wants
a direct cremation;
- When the consumer wants
an immediate burial; or
- When refrigeration is
available and the consumer wants a closed-casket
funeral with no formal viewing or visitation.
Example: A family wants
to arrange a funeral with a formal viewing.
The funeral will take place three days after
death has occurred on a hot summer day.
Your state does not require embalming. You
do not have refrigeration facilities. In
this situation, you can tell the family
that the funeral home requires embalming
as a practical necessity to delay decomposition
of the remains and to preserve them for
viewing. You may not tell the family that
the law requires embalming because this
is not the case.
Example:
A family wants to arrange an immediate burial,
but does not want to pay for embalming.
Embalming is not required by your state
law. Before burial takes place, one family
member wants to look briefly at the deceased
by lifting the lid of the casket. Here,
you may not tell the family that embalming
is required. The request to see the deceased
does not constitute a formal viewing.
In situations like the
above example, you also cannot require the
family to pay for "other preparation
of the body," if they decline embalming.
2. Casket for Direct Cremation
You cannot tell consumers
that state or local law requires them to
buy a casket if they are arranging a direct
cremation. (A direct cremation is one that
occurs without any formal viewing of the
remains or any visitation or ceremony with
the body present.) You also must not tell
consumers, in the case of direct cremations,
that they must buy a casket for any other
reason.
If you offer direct cremations,
you must make an alternative container available
and inform consumers that such containers
are available for direct cremations. You
do this by including on your GPL the mandatory
disclosure about alternative containers
discussed on page 7.
An "alternative container"
is 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. It
is made of fiberboard, pressed-wood, composition
materials or like materials, with or without
an outside covering.
Note:
The Rule also prohibits crematories
from requiring that a casket be purchased
for direct cremation. However, the Rule
allows crematories to set standards for
the kind of alternative containers that
they will accept. For example, a crematory
might stipulate that it will accept only
rigid containers.
3. Outer Burial Container
You cannot tell consumers
that state or local law requires them to
buy an outer burial container, if that is
not true. You also must tell consumers that
state law does not require them to purchase
an outer burial container. You satisfy this
obligation by including on the Outer Burial
Container Price List the mandatory disclosure
discussed on page 17. The mandatory disclosure
about outer burial containers also tells
consumers that grave liners are suitable
for meeting any cemetery requirement.
You may not tell consumers
that a particular cemetery requires an outer
burial container, if that is not true. You
may want to keep updated rules of local
cemeteries to make sure that your information
is accurate. If the particular cemetery
does require a container, then you should
explain this to the family.
4. Legal and Cemetery Requirements
You cannot tell consumers
that any federal, state, or local law or
a particular cemetery or crematory requires
them to buy a particular good or service,
if that is not true. If you do tell a consumer
that he or she must buy a particular item
because of any legal, cemetery, or crematory
requirement, you must identify and describe
the particular requirement in writing on
the Statement of Funeral Goods and Services
Selected.
5. Preservative and Protective
Value Claims
You cannot make any representations
to consumers that funeral goods or services
will delay the natural decomposition of
human remains for a long term or an indefinite
time. Although the Rule flatly prohibits
you from making this representation, the
Commission recognizes that it is possible
for some funeral goods or services to delay
decomposition for a short period.
Example:
A family selects a funeral with a viewing.
You may explain to the family that embalming
will temporarily preserve the body to make
it suitable for viewing. But, you cannot
tell them that the embalming will preserve
the body indefinitely.
You cannot tell consumers
that funeral goods (such as caskets or vaults)
have protective features or will protect
the body from gravesite substances when
that is not true.
Federal law requires you
to make all warranty information available
to consumers. Therefore, you must allow
the family to read any of the manufacturer's
warranties. However, you should indicate
that these claims are made by the manufacturer
and not by you.
Example: Mr. Morton has chosen
casket A. You should allow him to read the
written warranty that the manufacturer offers,
but you must not adopt as your own any statement
about preservation or protection that you
know to be in violation of the Rule. You
may want to inform Mr. Morton that the manufacturer
has made certain statements about the product,
but that you do not have personal knowledge
of the protective value of the merchandise.
6. Cash Advance Items
If you mark-up the charge
on cash advance items or receive a commission,
discount, or rebate that is not passed on
to the consumer, you cannot state that the
price charged for the cash advance item
is the same as your cost. If there is an
added charge, or if you receive and keep
a rebate, commission, or trade or volume
discount, you must tell the consumer that
the price is not the same as your cost.
You do this by including on your Statement
of Funeral Goods and Services Selected the
mandatory disclosure discussed on pages
20-21.
The Rule does not prevent
you from adding a service charge, nor does
it require you to disclose the amount of
that charge. However, some states may have
laws or regulations that prohibit any mark-up
on cash advance items.
7. Other Misrepresentations
Other kinds of misrepresentations,
though not specifically prohibited by the
Funeral Rule, are nonetheless illegal. The
FTC Act prohibits deceptive acts or practices.
Likewise, the consumer protection laws of
most states prohibit deceptive practices.
What Consumers
Cannot Be Required to Purchase
You cannot require consumers to buy unwanted
or unneeded goods and services to get the
items that they do want. Consumers must
be able to choose only the goods and services
that they want, with certain limited exceptions
noted below.(19)
Accordingly, you cannot
condition the furnishing of any funeral
good or service to a consumer on the purchase
of any other funeral good or service except
for your basic services fee and any items
required by law.(20) You also cannot refuse
to serve a family because they do not purchase
one particular item (e.g., a casket or embalming)
or a combination of items or services from
you.
In addition, you cannot
include the charge for an optional item
of service (such as embalming) in a non-declinable
basic services fee. This would have the
effect of making the optional item a required
purchase for every customer.
The Rule expressly prohibits
you from charging any fee, as a condition
of furnishing any funeral goods or services,
other than the fees for:
- The basic services of
funeral director and staff (the one non-declinable
fee allowed by the Rule);
- The funeral goods and
services selected by the consumer; and
- The funeral goods and
services required to be purchased by law
(or by the cemetery or crematory),(21) as
identified and explained on the itemized
Statement (see pages 20-21).
This means that you cannot charge an additional
fee or surcharge to consumers who purchase
a casket elsewhere. Such a fee would not
fall within the three categories of allowable
charges listed above. This extra "casket
handling" fee is simply a hidden penalty
for those consumers who exercise the right
to purchase a casket from another seller.
Moreover, you cannot alter
your prices based upon the particular selections
of each customer. Such a practice also would
defeat the purpose of the Rule to give people
accurate, itemized price information that
affords them the opportunity to select the
arrangements they want.
Exceptions: The three exceptions
to the consumer's general right to choose
only the goods and services wanted are:
- The one non-declinable
basic services fee;
- Items required by law
(or by the cemetery or crematory); and
- Impossible, impractical
or excessively burdensome requests. You
do not have to comply with such requests.(22)
However, you cannot refuse a request simply
because you don't like it or don't approve
of it.
Example:
During July, a family requests that a funeral
occur five days after death, but does not
want embalming. You don't have refrigeration
facilities. Your state law does not require
embalming under any circumstances. However,
in this situation, you can refuse to provide
these arrangements, unless the family buys
embalming. You can consider such a request
impractical or excessively burdensome.
Note: If a customer requests
an item that you do not normally offer,
you do not have to comply with the request.
However, you are free to do so.
"Free"
Items: You cannot list any of the
16 items required to be separately itemized
on the GPL as "free" or "no
charge." Because you recover the cost
of the free item in your other prices on
the GPL, the customer may not have the choice
of rejecting the charge. However, you can
offer items not required to be separately
itemized on the General Price List (such
as acknowledgment cards) at "no charge,"
as long as your state or local laws do not
prohibit this practice.
Prior Approval for Embalming
You can charge a fee for embalming,only
in one of the following three circumstances:(23)
1. State or local law
requires embalming under the particular
circumstances regardless of any wishes the
family might have. If this is the case,
you must note on the itemized Statement
of Funeral Goods and Services Selected that
embalming was performed because of a legal
requirement and briefly explain that requirement.
(Also see the discussion on page 23.)
Note: Federal law does
not require embalming under any circumstances.
2. You have obtained prior
approval for embalming from a family member
or other authorized person. (The Rule does
not address the issue of who is an "authorized
person" to give such approval. That
is a matter of state or local law.) You
must get express permission to embalm; it
cannot be implied.
Example: A family states
that they want a viewing before burial and
asks you to "prepare" the deceased.
You must specifically ask the family for
permission to embalm and must receive their
permission before you embalm the body.
In order to obtain the
family's express consent to embalm, you
must: 1) specifically ask for and obtain
their permission, and 2) not misrepresent
when embalming is required.
Example:
While making funeral arrangements, you tell
a family that they will be charged for embalming,
no matter what type of funeral arrangements
they choose. If they agree to the funeral
arrangements in general, this does not constitute
express consent to embalm. In addition,
if you charge a family for embalming here,
you would be charging a second non-declinable
fee that violates the Rule (see page 12).
Note: 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.
The Rule does not require
you to get the permission in writing, as
long as it is express approval. Some states,
however, may require written authorization.
On the Statement of Funeral
Goods and Services Selected, you must explain
the reason that you charged a fee for embalming.
The reason may be that the family requested
this service. However, if you tell a consumer
that embalming is required for a specific
reason (e.g., viewing or legal requirement),
then you should list this specific reason
on the Statement. Simply noting "family
consent" for embalming does not convey
the reason for embalming, only that the
family has consented.
3. All of the following
apply:
- You are unable to contact
a family member or other authorized person
after exercising due diligence. In trying
to contact the family, you must exhaust
all means known, given the time constraints.
Note: If refrigeration is available, you may be
required to take more steps to contact the
family and to obtain embalming authorization
than if no refrigeration is available.
- You have no reason to
believe that the family does not want embalming
performed.
- After embalming the
body, you obtain subsequent approval. In
seeking approval, you must tell the family
that if they select a funeral where embalming
would be required (such as a funeral with
formal viewing), you will charge a fee,
but that you will not charge a fee if they
select a funeral where embalming would not
be necessary (such as a direct cremation
with a memorial service). If the family
then expressly approves embalming or chooses
a funeral where embalming is required, you
may charge them for the embalming you performed.
But, if the family chooses a funeral where
no embalming would be required, you cannot
charge for the embalming.
Note: The required disclosure
regarding embalming on the itemized Statement
(see page 20) will let consumers know that
they do not have to pay for embalming if
you did not get their prior approval.
RecordKeeping
You must keep price lists
for at least one year from the date you
last distributed them to customers. You
also must keep a copy of each completed
Statement of Funeral Goods and Services
Selected for at least one year from the
date of the arrangements conference. You
must make these documents available for
inspection by FTC representatives upon request.(24)
Comprehension of Disclosures
You must make all the
required disclosures to consumers in a clear
and conspicuous manner. Your goal should
be to present the information in a reasonably
understandable form. In addition, the disclosures
must be legible. The print or type must
be large and prominent enough that consumers
can easily notice and read the information.
Finally, your price lists cannot include
any information that alters or contradicts
the information the Rule requires you to
give in those price lists.(25) You can include
other information on your price lists if
you wish. But, this should not be done in
such a way as to confuse or obscure the
required
information.
State Exemption Provisions
State agencies may apply to the Commission
for a statewide exemption from the Funeral
Rule.(26) The Commission may grant an exemption
if it finds that:
1. there is a state requirement
in effect that applies to the same transactions
that the Funeral Rule covers; and
2. the state requirement
provides an overall level of protection
that is as great as, or greater than, the
protection provided by the Funeral Rule.
If granted, the exemption
will be in effect, as specified by the Commission,
for as long as the state administers and
enforces effectively the state requirement.
An application for state exemption can be
filed only by a state government agency.
Funeral providers and trade associations
cannot file for statewide exemption.
If your state has obtained
such an exemption, you only need to comply
with your state regulations. If the Commission
has not granted your state an exemption,
you must comply with all state regulations,
as well as the FTC Funeral Rule. You must
comply with your state regulations, even
if they are more stringent than the Funeral
Rule.
Sample Price Lists
The FTC staff has attached these sample
price lists to help you to understand the
Funeral Rule's requirements. You do not
have to adopt these sample price lists.
They are only examples. In addition, the
fact that the FTC staff has developed these
price lists does not mean that this format
is the only appropriate one. A variety of
formats will satisfy the Rule's requirements.
Sample 1
ABC FUNERAL HOME
100 Main Street
Yourtown, USA 12345
(123) 456-7890
GENERAL PRICE LIST
These prices are effective
as of [date].
The goods and services
shown below are those we can provide to
our customers. You may choose only the items
you desire. However, any funeral arrangements
you select will include a charge for our
basic services and overhead. If legal or
other requirements mean you must buy any
items you did not specifically ask for,
we will explain the reason in writing on
the statement we provide describing the
funeral goods and services you selected.
Basic Services of Funeral
Director
and Staff and Overhead ..............................................................................................
$______
Our services include: conducting the arrangements
conference; planning the funeral; consulting
with family and clergy; shelter of remains;
preparing and filing of necessary notices;
obtaining necessary authorizations and permits;
coordinating with the cemetery, crematory,
or other third parties. In addition, this
fee includes a proportionate share of our
basic overhead costs.
This fee for our basic
services and overhead will be added to the
total cost of the funeral arrangements you
select. (This fee is already included in
our charges for direct cremations, immediate
burials, and forwarding or receiving remains.)
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 have the right to choose an
arrangement that does not require you to
pay for it, such as direct cremation or
immediate burial.
Other Preparation of the
Body ....................................................................................
$______
[list individual services and prices]
Transfer of Remains to
the Funeral Home
(within __ mile radius) .................................................................................................
$______
beyond this radius we charge __ per mile
Use of Facilities and
Staff For Viewing
at the Funeral Home ...................................................................................................
$______
Use of Facilities and
Staff For Funeral Ceremony
at the Funeral Home ...................................................................................................
$______
Use of Facilities and Staff For Memorial
Service
at the Funeral Home ...................................................................................................
$______
Use of Equipment and Staff
For Graveside Service .............................................
$______
Hearse ..........................................................................................................................
$______
Limousine ....................................................................................................................
$______
Caskets ..............................................................................................................
$______ to $______
A complete price list will be provided at
the funeral home.
Outer Burial Containers
...................................................................................
$______ to $______
A complete price list will be provided at
the funeral home.
Forwarding of Remains
to Another Funeral Home ......................................................
$______
Our charge includes: basic services of funeral
director and staff; a proportionate share
of overhead costs; removal of remains; embalming
or other preparation of remains, if relevant;
and local transportation.
Receiving Remains from
Another Funeral Home .........................................................
$______
Our charge includes: basic services of funeral
director and staff; a proportionate share
of overhead costs; care of remains; transportation
of remains to funeral home and to cemetery
or crematory.
Direct Cremation...............................................................................................
$______ to $______
Our charge for a direct cremation (without
ceremony) includes: basic services of funeral
director and staff; a proportionate share
of overhead costs; removal of remains; transportation
to crematory; necessary authorizations;
and cremation if relevant.
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 a fiberboard container or
an unfinished wood box.
A. Direct cremation with
container
provided by the purchaser ...................................................................................
$______
B. Direct cremation with
a fiberboard container .......................................................................................... $______
C. Direct cremation with
an unfinished wood box........................................... $______
Immediate Burial ..................................................................................................
$______ to $______
Our charge for an immediate burial (without
ceremony) includes: basic services of funeral
director and staff; a proportionate share
of overhead costs; removal of remains; and
local transportation to cemetery.
A. Immediate burial with
casket provided
by purchaser ..............................................................................................
$______
B. Immediate burial with
alternative
container [if offered].................................................................................. $
______
C. Immediate burial with
cloth covered
wood casket .............................................................................................. $______
Sample 2
ABC FUNERAL HOME CASKET PRICE LIST
These prices are effective
as of [date].
Alternative Containers:
1. Fiberboard Box .......................................................................................................... $______
2. Plywood Box ...............................................................................................................
$______
3. Unfinished Pine Box ................................................................................................. $______
Caskets:
1. Beige cloth-covered
soft-wood
with beige interior..........................................................................................................
$______
2. Oak stained soft-wood
with pleated blue crepe interior ..................................................................................
$______
3. Mahogany finished soft-wood
with maroon crepe interior ..........................................................................................
$______
4. Solid White Pine
with eggshell crepe interior .........................................................................................
$______
5. Solid Mahogany
with tufted rosetan velvet interior .................................................................................
$______
6. Hand finished solid
Cherry
with ivory velvet interior ..................................................................................................
$______
7. 18 gauge rose colored
Steel
with pleated maroon crepe interior
(available in a variety of interiors) ................................................................................
$______
8. 20 gauge bronze colored
Steel
with blue crepe interior ..................................................................................................
$______
9. Solid Bronze (16 gauge)
with brushed finish
white ivory velvet interior ................................................................................................
$______
10. Solid Copper (32 oz.)
with Sealer (Oval Glass)
and medium bronze finish with rosetan velvet
interior ...........................................
$______
Sample 3
ABC FUNERAL HOME OUTER BURIAL CONTAINER
PRICE LIST
These prices are effective
as of [date].
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.
1. Concrete Grave Liner .........................................................................................
$______
2. Acme Reinforced Concrete
Vault (lined).........................................................
$______
3. Acme Reinforced Concrete
Vault
(stainless steel lined) .............................................................................................
$______
4. Acme Solid Copper Vault
...................................................................................
$______
5. Acme Steel Vault (12
gauge) .............................................................................
$______
Sample 4
ABC FUNERAL HOME
STATEMENT OF FUNERAL
GOODS AND SERVICES SELECTED
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 any
items, we will explain the reasons in writing
below.
Deceased: __________________________________________________________________________
Purchaser: _________________________________________________________________________
Address: ___________________________________________________________________________
Tel. No. ____________________________________________________________________________
___________________
Date of Death
_______________________
Date of Arrangements
Basic Services of Funeral
Director and Staff and Overhead ...............................................
$______
Embalming ....................................................................................................................................
$______
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.
Other Preparation of the
Body
1. Cosmetic Work for
Viewing......................................................................................
$______
2. Washing and Disinfecting
Unembalmed Remains ........................................... $______
Transfer of Remains to
the Funeral Home ............................................................................ $______
Use of Facilities and
Staff For Viewing ...................................................................................
$______
Use of Facilities and
Staff For Funeral Ceremony ............................................................... $______
Use of Facilities and
Staff For Memorial Service ..................................................................
$______
Use of Equipment and Staff
For Graveside Service ............................................................ $______
Hearse .........................................................................................................................................
$______
Limousine ...................................................................................................................................
$______
Casket ..........................................................................................................................................
$______
Outer Burial Container
..............................................................................................................
$______
Forwarding of Remains
to Another Funeral Home .............................................................
$______
Receiving Remains from
Another Funeral Home ...............................................................
$______
Direct Cremation ........................................................................................................................
$______
Immediate Burial ........................................................................................................................
$______
CASH ADVANCE ITEMS
We charge you for our services in obtaining:
[specify relevant cash advance items].
Cemetery charges .......................................................................................
$_____
Crematory charges ......................................................................................
$_____
Flowers ..........................................................................................................
$_____
Obituary notice ..............................................................................................
$_____
Death certificate ...........................................................................................
$_____
Music ..............................................................................................................
$_____
Total Cash Advance Items .........................................................................
$_____
TOTAL COST OF ARRANGEMENTS
(including all services, merchandise,
and cash advance items) ..........................................................................
$_____
If any legal, cemetery,
or crematory requirement has required the
purchase of any
of the items listed above, we will explain
the requirement below:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Reason for Embalming:
___________________________________________________________________________
Endnotes
(1) Note: Before the 1994
revision, the Rule also required the following
disclosure on the GPL:
This list does not include
prices for certain items that you may ask
us to buy for you, such as cemetery or crematory
services, flowers, and newspaper notices.
The prices for those items will be shown
on your bill or statement describing the
funeral goods and services selected. [And
if appropriate] We charge you for our services
in buying these items.
The Rule no longer requires
this disclosure on the GPL. Instead, you
must place a shorter version of the disclosure
on the Statement of Goods and Services Selected
(see pages 20-21). However, you may continue
to place this disclosure on your GPL, if
you wish.
(2) See Section 453.4(b)
(2) (i) (A).
(3) See Section 453.3(a)
(2) (ii).
(4) See Section 453.3(b)
(2).
(5) See Section 453.2(b)
(4) (iii) (C).
(6) See Section 453.2(b)
(4) (iii) (A).
(7) See Section 453.2(b)
(4) (iii) (B).
(8) See Sections 453.2(b)
(4) (ii) - (iii).
(9) See Section 453.2(b)
(6).
(10) See Section 453.2(b)
(4) (iii) (C).
(11) See Section 453.2(b)
(2).
(12) See Section 453.2(b)
(3).
(13) See Section 453.2(b)
(5).
(14) See Section 453.4(b)
(2) (i) (B).
(15) See Section 453.5(b).
(16) See Section 453.3(f)
(2).
(17) See Section 453.2(b)
(1).
(18) See Section 453.3.
(19) See Section 453.4.
(20) See Section 453.4(b)
(1) (i).
(21) See Section 453.4(b)
(1) (ii).
(22) See Section 453.4(b)
(2) (ii).
(23) See Section 453.5
(24) See Section 453.6.
(25) See Section 453.7.
(26) The Commission's
staff has issued guidelines regarding exemption
proceedings, which were published in the
Federal Register on March 29, 1985. See
50 Fed. Reg. 12,521 (1985).
Part 453 — Funeral
Industry Practices Revised Rule
Section:
453.1 Definitions.
453.2 Price disclosures.
453.3 Misrepresentations.
453.4 Required purchase of funeral goods
or funeral services.
453.5 Services provided without prior approval.
453.6 Retention of documents.
453.7 Comprehension of disclosures.
453.8 Declaration of intent.
453.9 State exemptions.
Authority: 15 U.S.C. 57a(a);
15 U.S.C. 46(g); 5 U.S.C. 552.
§ 453.1 Definitions
(a) Alternative container
An “alternative container” is
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.
(b) Cash advance item
A “cash advance item” is 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
honoraria; flowers; musicians or singers;
nurses; obituary notices; gratuities and
death certificates.
c) Casket A “casket” is a 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.
(d) Commission “Commission”
refers to the Federal Trade Commission.
(e) Cremation “Cremation”
is a heating process which incinerates human
remains.
(f) Crematory A “crematory”
is any person, partnership or corporation
that performs cremation and sells funeral
goods.
(g) Direct cremation A
“direct cremation” is a disposition
of human remains by cremation, without formal
viewing, visitation, or ceremony with the
body present.
(h) Funeral goods “Funeral
goods” are the goods which are sold
or offered for sale directly to the public
for use in connection with funeral services.
(i) Funeral provider A
“funeral provider” is any person,
partnership or corporation that sells or
offers to sell funeral goods and funeral
services to the public.
(j) Funeral services “Funeral
services” are 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.
(k) Immediate burial An
“immediate burial” is a disposition
of human remains by burial, without formal
viewing, visitation, or ceremony with the
body present, except for a graveside service.
(l) Memorial service A
“memorial service” is a ceremony
commemorating the deceased without the body
present.
(m) Funeral ceremony A
“funeral ceremony” is a service
commemorating the deceased with the body
present.
(n) Outer burial container An “outer
burial container” is 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.
(o) Person A “person”
is any individual, partnership, corporation,
association, government or governmental
subdivision or agency, or other entity.
(p) Services of funeral
director and staff The “services of
funeral director and staff” are the
basic services, not to be included in prices
of other categories in § 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.
§ 453.2 Price Disclosures
(a) Unfair or Deceptive
Acts or Practices
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. Any funeral
provider who complies with the preventive
requirements in paragraph (b) of this section
is not engaged in the unfair or deceptive
acts or practices defined here.
(b) Preventive Requirements
To prevent these unfair
or deceptive acts or practices, as well
as the unfair or deceptive acts or practices
defined in
§ 453.4(b)(1), funeral providers must:
(1) Telephone Price Disclosure
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 the question.
(2) Casket Price List
(i) 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
and alternative containers offered which
do not require special ordering, enough
information to identify each, and the effective
date for the price list. In lieu of a written
list, other formats, such as notebooks,
brochures, or charts may be used if they
contain the same information as would the
printed or typewritten list, and display
it in a clear and conspicuous manner. Provided,
however, that funeral providers do not have
to make a casket price list available if
the funeral providers place on the general
price list, specified in paragraph (b)(4)
of this section, the information required
by this paragraph.
(ii) 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.”
(3) Outer Burial Container
Price List
(i) Give a printed or
typewritten price 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.
In lieu of a written list, the funeral provider
may use other formats, such as notebooks,
brochures, or charts, if they contain the
same information as the printed or typewritten
list, and display it in a clear and conspicuous
manner. Provided, however, that funeral
providers do not have to make an outer burial
container price list available if the funeral
providers place on the general price list,
specified in paragraph (b)(4) of this section,
the information required by this paragraph.
(ii) 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.”
(4) General Price List
(i)(A) 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. The funeral provider
must give the list upon beginning discussion
of any of the following:
(1) the prices of funeral
goods or funeral services;
(2) the overall type of
funeral service or disposition; or
(3) specific funeral goods
or funeral services offered by the funeral
provider.
(B) The requirement in
paragraph (b)(4)(i)(A) of this section applies
whether the discussion takes place in the
funeral home or elsewhere. Provided, however,
that when the deceased is removed for transportation
to the funeral home, an in-person request
at that time for authorization to embalm,
required by § 453.5(a)(2), does not,
by itself, trigger the requirement to offer
the general price list if the provider in
seeking prior embalming approval discloses
that embalming is not required by law except
in certain special cases, if any. Any other
discussion during that time about prices
or the selection of funeral goods or services
triggers the requirement under paragraph
(b)(4)(i)(A) of this section to give consumers
a general price list.
(C) The list required
by paragraph (b)(4)(i)(A) of this section
must contain at least the following information:
(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”;
and
(3) The effective date
for the price list;
(ii) Include on the price
list, in any order, the retail prices (expressed
either as the flat fee, or as the price
per hour, mile or other unit of computation)
and the other information specified below
for at least each of the following items,
if offered for sale:
(A) Forwarding of remains
to another funeral home, together with a
list of the services provided for any quoted
price;
(B) Receiving remains
from another funeral home, together with
a list of the services provided for any
quoted price;
(C) The price range for
the direct cremations offered by the funeral
provider, together with:
(1) a separate price for
a direct cremation where the purchaser provides
the container;
(2) separate prices for
each direct cremation offered including
an alternative container; and
(3) a description of the
services and container (where applicable),
included in each price;
(D) The price range for
the immediate burials offered by the funeral
provider, together with:
(1) a separate price for
an immediate burial where the purchaser
provides the casket;
(2) separate prices for
each immediate burial offered including
a casket or alternative container; and
(3) a description of the
services and container (where applicable)
included in that price;
(E) Transfer of remains
to funeral home;
(F) Embalming;
(G) Other preparation
of the body;
(H) Use of facilities
and staff for viewing;
(I) Use of facilities
and staff for funeral ceremony;
(J) Use of facilities
and staff for memorial service;
(K) Use of equipment and
staff for graveside service;
(L) Hearse; and
(M) Limousine.
(iii) Include on the price
list, in any order, the following information:
(A) Either of the following:
(1) The price range for
the caskets offered by the funeral provider,
together with the statement: “A complete
price list will be provided at the funeral
home.”; or
(2) The prices of individual
caskets, disclosed in the manner specified
by paragraph (b)(2)(i) of this section;
and
(B) Either of the following:
(1) The price range for
the outer burial containers offered by the
funeral provider, together with the statement:
“A complete price list will be provided
at the funeral home.”; or
(2) The prices of individual
outer burial containers, disclosed in the
manner specified by paragraph (b)(3)(i)
of this section; and
(C) Either of the following:
(1) The price for the
basic services of funeral director and staff,
together with a list of the principal basic
services provided for any quoted price and,
if the charge cannot be declined by the
purchaser, the statement: “This fee
for our basic services will be added to
the total cost of the funeral arrangements
you select. (This fee is already included
in our charges for direct cremations, immediate
burials, and forwarding or receiving remains.)”.
If the charge cannot be declined by the
purchaser, the quoted price shall include
all charges for the recovery of unallocated
funeral provider overhead, and funeral providers
may include in the required disclosure the
phrase “and overhead” after
the word “services”; or
(2) The following statement:
“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).” The fee shall
include all charges for the recovery of
unallocated funeral provider overhead, and
funeral providers may include in the required
disclosure the phrase “and overhead”
after the word “services.” The
statement must be placed on the general
price list together with the casket price
range, required by paragraph (b)(4)(iii)(A)(1)
of this section, or together with the prices
of individual caskets, required by (b)(4)(iii)(A)(2)
of this section.
(iv) The services fee
permitted by
§ 453.2(b)(4)(iii)(C)(1) or (C)(2)
is the only funeral provider fee for services,
facilities or unallocated overhead permitted
by this part to be non-declinable, unless
otherwise required by law.
(5) Statement of Funeral
Goods and Services Selected
(i) Give 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. The statement
must list at least the following information:
(A) The funeral goods
and funeral services selected by that person
and the prices to be paid for each of them;
(B) Specifically itemized
cash advance items. (These prices must be
given to the extent then known or reasonably
ascertainable. If the prices are not 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.); and
(C) The total cost of
the goods and services selected.
(ii) The information required
by this paragraph (b)(5) may be included
on any contract, statement, or other document
which the funeral provider would otherwise
provide at the conclusion of discussion
of arrangements.
(6) Other Pricing Methods
Funeral providers may
give persons any other price information,
in any other format, in addition to that
required by
§ 453.2(b)(2), (3), and (4) so long
as the statement required by § 453.2(b)(5)
is given when required by the rule.
§ 453.3 Misrepresentations
(a) Embalming Provisions
(1) Deceptive Acts or
Practices
In selling or offering
to sell funeral goods or funeral services
to the public, it is a deceptive act or
practice for a funeral provider to:
(i) Represent that state
or local law requires that a deceased person
be embalmed when such is not the case;
(ii) Fail to disclose
that embalming is not required by law except
in certain special cases, if any.
(2) Preventive requirements
To prevent these deceptive
acts or practices, as well as the unfair
or deceptive acts or practices defined in
§§ 453.4(b)(1) and 453.5(2), funeral
providers must:
(i) Not represent that
a deceased person is required to be embalmed
for:
(A) direct cremation;
B) immediate burial; or
(C) a closed casket funeral
without viewing or visitation when refrigeration
is available and when state or local law
does not require embalming; and
(ii) Place the following
disclosure on the general price list, required
by
§ 453.2(b)(4), in immediate conjunction
with the price shown for 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 have the
right to choose an arrangement that does
not require you to pay for it, such as direct
cremation or immediate burial.” The
phrase “except in certain special
cases” need not be included in this
disclosure if state or local law in the
area(s) where the provider does business
does not require embalming under any circumstances.
(b) Casket for Cremation
Provisions
(1) Deceptive Acts or
Practices
In selling or offering
to sell funeral goods or funeral services
to the public, it is a deceptive act or
practice for a funeral provider to:
(i) Represent that state
or local law requires a casket for direct
cremations;
(ii) Represent that a
casket is required for direct cremations.
(2) Preventive Requirements
To prevent these deceptive
acts or practices, as well as the unfair
or deceptive acts or practices defined in
§ 453.4(a)(1), funeral providers must
place the following disclosure in immediate
conjunction with the price range shown for
direct cremations: “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 containers).”
This disclosure only has to be placed on
the general price list if the funeral provider
arranges direct cremations.
(c) Outer Burial Container
Provisions
(1) Deceptive Acts or
Practices
In selling or offering
to sell funeral goods and funeral services
to the public, it is a deceptive act or
practice for a funeral provider to:
(i) Represent that state
or local laws or regulations, or particular
cemeteries, require outer burial containers
when such is not the case;
(ii) Fail to disclose
to persons arranging funerals that state
law does not require the purchase of an
outer burial container.
(2) Preventive Requirement
To prevent these deceptive
acts or practices, funeral providers must
place the following disclosure on the outer
burial container price list, required by
§ 453.2(b)(3)(i), or, if the prices
of outer burial containers are listed on
the general price list, required by
§ 453.2(b)(4), in immediate conjunction
with those prices: “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.”
The phrase “in most areas of the country”
need not be included in this disclosure
if state or local law in the area(s) where
the provider does business does not require
a container to surround the casket in the
grave.
(d) General Provisions
on Legal and Cemetery Requirements
(1) Deceptive Acts or
Practices
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.
(2) Preventive Requirements
To prevent these deceptive
acts or practices, as well as the deceptive
acts or practices identified in §§
453.3(a)(1), 453.3(b)(1), and 453.3(c)(1),
funeral providers must identify and briefly
describe in writing on the statement of
funeral goods and services selected (required
by § 453.2(b)(5)) any legal, cemetery,
or crematory requirement which the funeral
provider represents to persons as compelling
the purchase of funeral goods or funeral
services for the funeral which that person
is arranging.
(e) Provisions on Preservative
and Protective Value Claims
In selling or offering
to sell funeral goods or funeral services
to the public, it is a deceptive act or
practice for a funeral provider 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.
(f) Cash Advance Provisions
(1) Deceptive Acts or
Practices
In selling or offering
to sell funeral goods or funeral services
to the public, it is a deceptive act or
practice for a funeral provider to:
(i) Represent that the
price charged for a cash advance item is
the same as the cost to the funeral provider
for the item when such is not the case;
(ii) 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.
(2) Preventive Requirements
To prevent these deceptive
acts or practices, funeral providers must
place the following sentence in the itemized
statement of funeral goods and services
selected, in immediate conjunction with
the list of itemized cash advance items
required by § 453.2(b)(5)(i)(B): “We
charge you for our services in obtaining:
(specify 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.
§ 453.4 Required
Purchase of Funeral Goods or Funeral Services.
(a) Casket for Cremation
Provisions
(1) Unfair or Deceptive
Acts or Practices
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,
or a crematory, to require that a casket
be purchased for direct cremation.
(2) Preventive Requirement
To prevent this unfair
or deceptive act or practice, funeral providers
must make an alternative container available
for direct cremations, if they arrange direct
cremations.
(b) Other Required Purchases
of Funeral Goods or Funeral Services
(1) Unfair or Deceptive
Acts or Practices
In selling or offering
to sell funeral goods or funeral services,
it is an unfair or deceptive act or practice
for a funeral provider to:
(i) Condition the furnishing
of any funeral good or funeral service to
a person arranging a funeral upon the purchase
of any other funeral good or funeral service,
except as required by law or as otherwise
permitted by this part;
(ii) Charge any fee as
a condition to furnishing any funeral goods
or funeral services to a person arranging
a funeral, other than the fees for: (1)
services of funeral director and staff,
permitted by
§ 453.2(b)(4)(iii)(C); (2) other funeral
services and funeral goods selected by the
purchaser; and (3) other funeral goods or
services required to be purchased, as explained
on the itemized statement in accordance
with
§ 453.3(d)(2).
(2) Preventive Requirements
(i) To prevent these unfair
or deceptive acts or practices, funeral
providers must:
(A) Place the following
disclosure in the general price list, immediately
above the prices required by
§ 453.2(b)(4)(ii) and (iii): “The
goods and services shown below are those
we can provide to our customers. You may
choose only the items you desire. If legal
or other requirements mean you must buy
any items you did not specifically ask for,
we will explain the reason in writing on
the statement we provide describing the
funeral goods and services you selected.”
Provided, however, that if the charge for
“services of funeral director and
staff” cannot be declined by the purchaser,
the statement shall include the sentence:
“However, any funeral arrangements
you select will include a charge for our
basic services” between the second
and third sentences of the statement specified
above herein. The statement may include
the phrase “and overhead” after
the word “services” if the fee
includes a charge for the recovery of unallocated
funeral provider overhead;
(B) Place the following
disclosure in the statement of funeral goods
and services selected, required by §
453.2(b)(5)(i): “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 any
items, we will explain the reasons in writing
below.”
(ii) A funeral provider
shall not violate this section by failing
to comply with a request for a combination
of goods or services which would be impossible,
impractical, or excessively burdensome to
provide.
§ 453.5 Services Provided Without Prior
Approval
(a) Unfair or Deceptive
Acts or Practices
In selling or offering
to sell funeral goods or funeral services
to the public, it is an unfair or deceptive
act or practice for any provider to embalm
a deceased human body for a fee unless:
(1) State or local law
or regulation requires embalming in the
particular circumstances regardless of any
funeral choice which the family might make;
or
(2) Prior approval for
embalming (expressly so described) has been
obtained from a family member or other authorized
person; or
(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 (expressly so described).
In seeking approval, the funeral provider
must disclose that a fee will be charged
if the family selects a funeral which requires
embalming, such as a funeral with viewing,
and that no fee will be charged if the family
selects a service which does not require
embalming, such as direct cremation or immediate
burial.
(b) Preventive Requirement
To prevent these unfair
or deceptive acts or practices, funeral
providers must include on the itemized statement
of funeral goods and services selected,
required by § 453.2(b)(5), the statement:
“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.”
§ 453.6 Retention of Documents
To prevent the unfair
or deceptive acts or practices specified
in § 453.2 and § 453.3 of this
rule, funeral providers must retain and
make available for inspection by Commission
officials true and accurate copies of the
price lists specified in §§ 453.2(b)(2)
through (4), as applicable, for at least
one year after the date of their last distribution
to customers, and a copy of each statement
of funeral goods and services selected,
as required by § 453.2(b)(5), for at
least one year from the date of the arrangements
conference.
§ 453.7 Comprehension
of Disclosures
To prevent the unfair
or deceptive acts or practices specified
in § 453.2 through § 453.5, funeral
providers must make all disclosures required
by those sections in a clear and conspicuous
manner. Providers shall not include in the
casket, outer burial container, and general
price lists, required by §§ 453.2(b)(2)-(4),
any statement or information that alters
or contradicts the information required
by this Part to be included in those lists.
§ 453.8 Declaration
of Intent
(a) Except as otherwise
provided in
§ 453.2(a), it is a violation of this
rule to engage in any unfair or deceptive
acts or practices specified in this rule,
or to fail to comply with any of the preventive
requirements specified in this rule;
(b) The provisions of
this rule are separate and severable from
one another. If any provision is determined
to be invalid, it is the Commission’s
intention that the remaining provisions
shall continue in effect.
(c) This rule shall not
apply to the business of insurance or to
acts in the conduct thereof.
§ 453.9 State Exemptions
If, upon application to
the Commission by an appropriate state agency,
the Commission determines that:
(a) There is a state requirement
in effect which applies to any transaction
to which this rule applies; and
(b) That state requirement
affords an overall level of protection to
consumers which is as great as, or greater
than, the protection afforded by this rule;
then the Commission’s
rule will not be in effect in that state
to the extent specified by the Commission
in its determination, for as long as the
State administers and enforces effectively
the state requirement.
By direction of the Commission.
Donald S. Clark
Secretary
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