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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; t |