News & FCAME Publications: Reference Guide
IV. LEGALITIES
| Introduction I. Funerals II. Cremation III. Earth Burial IV. Legalities V. Prepaying Your Funeral VI. Donation (Whole Body, Organ/Tissue) VII. Veterans Cemeteries |
What is the FTC's FUNERAL RULE?
Under its authority to promulgate rules, the FTC issued a trade rule in 1982 entitled Funeral Industry Practices--commonly called the "Funeral Rule." Operational in 1984 (and revised in 1994), the Funeral Rule requires morticians to give consumers accurate, itemized price information and various other disclosures about funeral goods and services.
Among other things, the Funeral Rule deems it unlawful to: misrepresent legal, crematory, and cemetery requirements; state that funeral goods and services have certain preservation and protective qualities; assert that caskets must be used for cremation; maintain that embalming is required by law (when in fact it usually is not).
The goal of the Funeral Rule is to protect consumers' rights to purchase only that which they wish and to receive forthright and accurate information.
What are other requirements of the Funeral Rule?
Other (but not all) requirements include:
a. GENERAL PRICE LISTS (GPL'S)
The GENERAL PRICE LIST (GPL) is the foundation of the Funeral Rule. It is a "menu" of funeral options which enables consumers to comparison shop and purchase only the goods and services desired. It must contain identifying information, itemized prices for the goods and services offered, and specific disclosures.
How is a GPL recognized? It is obviously captioned "General Price List" and should contain, among other items, rubrics for, descriptions of, and prices for "Direct Cremation" and "Immediate Burial" provided the establishment offers these items (e.g., a cremation service would not be expected to show an entry for "Immediate Burial" on its GPL).
Morticians must hand anyone inquiring IN PERSON about funeral goods or services or their prices a GPL to keep.
To consumers telephoning about prices or offerings, morticians must give accurate information from their General Price List (GPL), Casket Price List (CPL), and Outer Burial Container Price List (OBC Price List). Callers cannot be required to give their names, addresses, or phone numbers before receiving this information.
b. THE BASIC SERVICES FEE (THE NON-DECLINABLE FEE)
The Funeral Rule permits morticians to charge a BASIC SERVICES FEE--for basic mortuary staff services and overhead--which is non-declinable. The consumer must pay this fee in addition to the cost of all funeral goods and services selected unless opting for a direct cremation or immediate burial, in which case this fee is already included. Here are other facts about the basic services fee, which is usually (but not always) the first item on the GPL:
- It accounts for approximately 40% of all service charges and in our area is roughly 25% higher than that of the national average.
- It is capricious and easily manipulated: a funeral director can lower casket prices to compete with a casket retailer, then recoup by hiking the basic services fee.
- It is inequitable: families selecting minimal funerals must nonetheless pay for overhead expenses related to parking lots or reception rooms.
- It is not consumer-friendly: the FCA has petitioned the FTC to abolish it though to date this has not occurred.
NOTE: Because the basic services fee is the only allowable nondeclinable fee, a mortuary may not levy a "casket handling fee". A fee charged when a casket is purchased outside the funeral home is illegal.
c. CASH ADVANCE ITEMS
The Funeral Rule mandates the following disclosure when a mortician charges a fee for purchasing cash advance items, such as flowers, obituary notices, and certified death certificates, which are paid up front: "We charge you for our services in obtaining ...." (This statement will appear on an itemization of the funeral goods and services selected.) However, the Funeral Rule does not require that the amount of that charge be specified. It is therefore important to INQUIRE BEFOREHAND ABOUT ANY TACKED-ON FEES ALONG WITH THE COST OF CASH ADVANCE ITEMS.
Note: For further information on the Funeral Rule, order (at no charge) the booklet "Complying with the Funeral Rule." Phone 1-877-FTC-HELP (1-877-382-4357) or write to: FTC-CRC, Washington, D.C. 20580.