Regulatory Compliance test one

FTC

The FTC consists of five commissioners appointed by the President for seven-year terms.

Purpose of FTC

Maintain free and fair competition.

Purpose of FTC

address monopolies

Purpose of FTC

restraint of trade, and deceptive practices

Purpose of FTC

prevent anti-competitive practices to aid consumers

what do they do

Funeral Service Trade Regulation Rule

what do they do

Clayton Anti-Trust Act

what do they do

Fair Packaging &Labeling Act

what do they do

Truth in Lending Act(TILA)

what do they do

Fair Credit Reporting Act(FCRA)

what do they do

Robinson-Patman Act

what do they do

Magnuson-Moss Warranty Act

what do they do

Cooling Off Rule for Door-to-Door Sales

The FTC created by congress

1914

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

1984

How is the rule enforced

Consumer Education

How is the rule enforced

Self Enforcement

How is the rule enforced

Direct Enforcement

How is the rule enforced

FROP

Compliance and enforcement may differ from state to state

but all must meet the the requirements of the RULE

General Price List

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

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

GPL Requirements

Identifying Information

GPL Requirements

Six Required Disclosures

GPL Requirements

Required Itemized Prices

Six Required Disclosures

These six disclosures MUST be written on the GPL exactly as the RULE describes in a clear and conspicuous manner

Six Required Disclosures

You must use the identical wording that the FTC says you must use. You cannot edit or paraphrase.

Six Required Disclosures

You may include additional information to reference your own state laws, but you may not modify or or add anything that changes the FTC language

Identifying Information

Caption

Funeral Provider Name & Address

Effective Date

Right of Selection

The consumer can select only the items they want to buy. This disclosure must be written immediately above the prices of the of the goods and services. If you have a non-declinable basic service fee you must have the third sentence. You must add the phrase "and overhead" if the fee includes the recovery of overhead fees

Embalming

This disclosure tells the consumer that the law does not require embalming. This disclosure must be placed directly next to the embalming fees.

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 skip this disclosure

Basic Service Fee

This is the fee for the professional services of the funeral director and staff. It includes:• conducting the arrangement conference, planning the funeral, securing the permits, preparing notices, and organizing the cemetery and/or crematory plans. It can also include overhead fees.

Option #1

is to be located within the basic service fee. If your basic service fee is non-declinable then it must include all overhead feesthat you have not allocated elsewhere.

Option #2

the disclosure needs to be listed with the casket price list. This fee must include all overhead fees that you have not allocated elsewhere.

Casket Price List

You may list the casket prices on the GPL or on a separate Casket PriceList. If you do put it on a separate list you must have a casket price range(lowest to highest) on the GPL. Then right next to this range the following sentence must be written.

Outer Burial Container Price List

You may list the outer burial container prices on the GPL or on a separate Outer Burial Container Price List. If you do put it on a separate list you must have an outer burial container price range (lowest to highest) on the GPL. Then right next to this range the following sentence must be written.

FTC Funeral Rule

Requires transparency via General Price List (GPL) and prohibits misrepresentation in funeral services.

Penalty for Violating Funeral Rule

$51,120 per violation in 2024.

Six Required Disclosures

Right of Selection, Embalming, Alternative Containers, Basic Service Fee, Casket Price List, Outer Burial Container Price List.

GPL Requirements

Must be printed or typed with identifying information (provider's name, address, effective date) and itemized prices with required disclosures.