Exam (elaborations)
Complying With the FTC Funeral Rule- Questions & Answers
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Complying With the FTC Funeral Rule- Questions & Answers
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Complying With the FTC Funeral Rule-Questions & Answers
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.
"Legal & cemetery requirements" misrepresentations Correct Ans-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.
"Preservative & protective value claims" misrepresentations Correct Ans-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.
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.
"Cash advance items" misrepresentations Correct Ans-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 the mandatory disclosure on your Statement of Funeral Goods and Services
Selected.
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.
Are other misrepresentations not listed still prohibited by the Funeral Rule? Correct Ans-
Other kinds of misrepresentations, though not specifically prohibited by the Funeral Rule, are
also illegal. The FTC Act prohibits deceptive acts or practices. Likewise, the consumer protection
laws of most states prohibit deceptive practices.
What are the three exceptions to the consumer's general right to choose only the goods and
services wanted? Correct Ans-1. The one non-declinable basic services fee
2. Items required by law (or by the cemetery or crematory)
,3. Impossible, impractical or excessively burdensome requests. You do not have to comply with
such requests. However, you cannot refuse a request simply because you don't like it or don't
approve of it.
Can you condition the furnishing of any funeral good or service to a consumer on the purchase
of any other funeral good or service? Correct Ans-NO! 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.
Can you refuse to serve a family if they refuse to purchase an item or combination of items from
you? Correct Ans-NO! You 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.
Can you list any of the 16 required GPL items as "free" or "no charge"? Correct Ans-NO! 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.
In what 3 circumstances may you charge the consumer a fee for embalming? Correct Ans-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 (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 (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).
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. (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
Recordkeeping Correct Ans-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.
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