Regulatory Compliance Quiz 1

Regulatory Compliance Quiz 1 / Pittsburgh Institute of Mortuary Science / Exam date: 01/27/2025

Federal Trade Commision (FTC) (Who they are)

Five commissioners appointed by the President of the US for a period of seven years

Federal Trade Commision (FTC) (Their purpose)

Maintain free and fair competition in business in the US

Take action against monopolies, restraint of trade, and unfair or deceptive trade practices

Prevent anti-competitive practices in the marketplace as an aid to consumers

Federal Trade Commision (FTC) (What they do)

Funeral Service Trade Regulation Rule

Clayton Antitrust Act

Fair Packaging & Labeling Act

Truth in Lending Act (TILA)

Fair Credit Reporting Act (FCRA)

Robinson-Patman Act

Magnuson-Moss Warranty Act

Cooling Off Rule for Door-to-Door Sales

• Sales over $25, have right of canceling within 3 business days

Year FTC created by Congress

1914

Date FTC Rule takes effect (portion prohibiting misrepresentation)

1984: Jan 1st,

Date Full FTC Trade Regulation Rule for the Funeral Industry Practices takes effect

1984: April 30th

The Funeral Rule requirements

Applies to funeral provider: sell both funeral goods and services

Compliance

Pre-need is exception unless family makes any change

The Funeral Rule $ Violations for 2023 & 2024

$43,280 in 2023

$51,120 in 2024

How The Funeral Rule is enforced

Consumer education

Self enforcement

Direct enforcement

FROP

• Funeral Rule Offenders Program

Compliance and enforcement may differ from state to state but all must meet the requirements of the rule

General price list (GPL)

Printed or typewritten list of goods and services offered for sale by a funeral provider with retail prices

Given to anyone who asks in person, about funeral goods, funeral services, or the prices of such goods or services. You must give a GPL to all persons who inquire about funeral arrangements; includes competitors, journalists, representatives of business, religious societies, government agencies, &/or consumer groups

Triggering event

Face-to-face meeting can occur anywhere, not just at the funeral home; when you begin to discuss any of the following: funeral disposition, goods & services, or pricing

GPL requirements

Must be printed or typed

Must have identifying information

Six required discloses

Required itemized prices

Six required discloses

Must use identical wording the FTC says, no editing or paraphrasing

You may include additional information to reference your own state laws

1) Right of selection

2) Embalming

3) Alternative container

4) Basic service fee

5) Casket price list

6) Outer burial container price list

1) Right of selection disclosure

The consumer can select only the items they want to buy

This must be written immediately above the prices of the goods and services

If you have a non-declinable basic service fee you must have the third sentence and add “and overhead”

2) Embalming disclosure

This disclosure tells the consumer that the law does not require embalming

This disclosure must be places directly next to embalming fees

3) Alternative container

This disclosure informs the consumer that they may use alternative containers for direct cremations

It must be placed directly next to the price range for cremation

If your firm does not offer cremation you may skin this disclosure

4) Basic service fee disclosure

This is the fee for the professional services of the funeral director and stuff

2 options

Located within the basic service fee & non-declinable

Located with casket price

It includes:

Conducting the arrangement conference

Planning the funeral

Securing the permits

Preparing notices

Organizing the cemetery and/or crematory plans

Can also include overhead fees

Required itemized prices (GPL)

Can be in any order

Don't have to list items your do not provide

May list additional

Prices must be accurate

May charge less than the prices published, but only for family, friends, or special cases where families have a financial need

Cannot artificially inflate your gpl and give everyone a discount to look like a hero

16 required