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FTC Funeral Rule
FTC Funeral Rule Terminology
43
Business
Professional
11/12/2014

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Term
Alternative Container
Definition
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 and which is made of fiberboard, pressed-wood, composition materials, or like materials.
Term
Alternative Price Lists
Definition
Price lists which may be prepared for use in certain limited situations such as children/infants, for government agencies to provide for indigent persons, for agreements with religious groups, burial or memorial societies for members of their group.
Term
Cash Advance Item
Definition
Any item obtained from a third party and paid for by the funeral provider on the purchaser's behalf. May include: cemetery, cremation, pallbearers, public transportation, flowers, etc.
Term
Casket
Definition
A rigid container which is designed for the encasement of human remains and which is usually constructed of wood, metal, fiberglass, plastic, or like material and ornamented and lined with fabric.
Term
Casket Handling Fees
Definition
Surcharge applied to consumers who purchase their casket elsewhere (from source other than the price list/funeral provider).
Term
Casket Price List (CPL)
Definition
Printed list of the casket and alternative containers normally offered for sale by the funeral provider which do not require special ordering. Must include retail price and enough descriptive information to enable consumers to identify the merchandise.
Term
Commission
Definition
Refers to the Federal Trade Commission
Term
Crematory
Definition
Any person, partnership or corporation that performs cremation and sells funeral goods.
Term
Exigent Circumstances
Definition
Situation requiring immediate action or urgency; when exigent circumstances exist the funeral provider might embalm without permission.
Term
Federal Trade Commission (FTC)
Definition
Agency of federal government created in 1914 to promote free and fair comepetion by prevention of trade restraints, price fixing, false advertising, and other unfair methods of competition.
Term
Forwarding of Remains
Definition
One of the categories required to be itemized on GPL; services of the funeral provider in the locale where the death occurs and prepares for transfer to another funeral provider as selected by the family (consumer).
Term
Free Items on GPL
Definition
None of the 16 items required by the rule to be separately itemized on the GPL can be listed as free or no charge.
Term
Funeral Goods
Definition
Goods which are sold or offered for sale directly to the public for use in connection with funeral services.
Term
Funeral Provider
Definition
Any person, partnership or corporation that sells or offers to sell funeral goods and funeral services to the public.
Term
Funeral Provider
Definition
Any person, partnership or corporation that sells or offers to sell funeral goods and funeral services to the public.
Term
General Price List (GPL)
Definition
Printed list of goods and services offered for sale by a funeral provider with retail prices. GPL considered cornerstone of Funeral Rule.
Term
Itemization
Definition
Method of price quotion by which each unit of service and/or merchandise is priced separately.
Term
Mandatory Disclosures
Definition
Statements required by the FTC rule which cannot be modified or editied and must appear in a clear and conspicuous manner.
Term
Non-declinable Service Fee
Definition
Basic services is the only fee which the consumer cannot decline (unless state or local law requires otherwise). Funeral provider should recover expenses for services, facilities or unallocated overhead in this charge.
Term
Outer Burial Container
Definition
Any container which is designed for placement in the grave around the casket including, but not limited to, container commonly known as burial vaults, grave boxes, and grave liners.
Term
Outer Burial Container Price List (OBC PL)
Definition
Printed list of outer burial constainers normally offered for sale by funeral provider which do not require special ordering. OBC PL must include retail price and enough descriptive information to enable consumers to identify the merchandise.
Term
Package Funeral
Definition
Use of a single dollar amount to identify the charge for a group or bundle of goods and/or services.
Term
Receiving Remains
Definition
Required category to be itemized on GPL; involves services of the funeral provider afer another firm at the locale of death has provided initial services.
Term
Services of Funeral Director and Staff
Definition
Basic services, not to be included in prices of the other categories that are furnished by funeral provider in arranging any funeral, such as conduction arrangement conference, planning the funeral, obtaining necessary permits, and placing obituary notices.
Term
Statement of Funeral Goods and Services Selected
Definition
Itemized written statement provided for retention to each person who arranges a funeral or other disposition. Must include goods and services selected and the prices paid for each, itemization of cash advance items and the total cost.
Term
Telephone Price Disclosure
Definition
Funeral provider must give consumers who call accurate information from the price lists and answer questions about offerings and prices with readily available information.
Term
Triggering Event
Definition
Occurence of situation that requires certain action i.e. the triggering event for giving out the GPL is face-to-face meeting.
Term
Tying Arrangements
Definition
Exists when a seller requires the purchase of unwanted items/services in order to obtain the desired item/service.
Term
FTC Funeral Rule Prohibits
Definition
1. misrepresenting legal, crematory, and cemetery requirements
2. embalming for a fee without permission
3. requiring the purchase of a casket for direct cremation
4. requiring consumers to buy certain funeral goods or services as condition for furnishing other funeral goods or services
5. engaging in other deceptive or unfair practices
Term
Does the Rule apply to Pre-Need Arrangements?
Definition
Rule does not apply to pre-need contracts entered into before the Rule went into effect in 1984. However if a pre-need contract is modified after 1984 the modification triggers all of the Rule's requirements.
Term
Mail Inquires about GPL
Definition
You do not have to send a GPL in response to mail inquires about funeral goods and services.
Term
Mail Inquires about GPL
Definition
You do not have to send a GPL in response to mail inquires about funeral goods and services.
Term
Required Identifying Information (3)
Definition
1. Name, address and telephone number of the funeral provider's place of business (for each branch)
2. Caption "General Price List"
3. Effective date of price list
Term
Required Disclosures (6)
Definition
1. Consumer's right to select only the goods and services desired
2. Embalming
3. Alternative containers for direct cremation
4. Basic services fee
5. Casket Price List (CPL)
6. Outer Burial Container Price List (OBC PL)
Term
Right of selection
Definition
Required GPL disclosure; consumers have right to select only the items that they want to buy, besides non-declinable basic services fee
Term
Embalming
Definition
Required GPL disclosure; except in certain special cases, embalming is not required by law
Term
Alternative Containers
Definition
Required GPL disclosure; may use alternative containers for direct cremations
Term
Basic Services Fee
Definition
Required GPL disclosure; the fee for the professional services of the FD and staff that you will add to the total cost of the funeral arrangements; can be listed separately as services or overhead or added in casket prices with disclosure that price of casket includes basic servive fee
Term
Casket Price List
Definition
Required GPL disclosure; GPL should state the range of prices for the caskets sold or together with the following disclosure: a complete price list will be provided at the funeral home.
Term
Outer Burial Container
Definition
Informs that an outer burial container price list is available
Term
Required Itemized Prices on the GPL (16)
Definition
1. Forwarding of remains to another funeral home
2. Receiving remains from another funeral home
3. Direct cremation
4. Immediate burial
5. Basic services of funeral director and staff and overhead
6. Transfer of remains to funeral home
7. Embalming
8. Other preparation of the body
9. Use of facilities and staff for viewing
10. Use of facilities and staff for funeral ceremony
11. Use of facilities and staff for memorial service
12. Use of facilities and staff for graveside service
13. Hearse
14. Limousine
15. Either individual casket prices or the range of casket prices that appear on CPL
16. Either individual outer burial container prices or the range of outer burial container prices that appear on OBC PL
Term
Required Itemized Prices on the GPL (16)
Definition
1. Forwarding of remains to another funeral home
2. Receiving remains from another funeral home
3. Direct cremation
4. Immediate burial
5. Basic services of funeral director and staff and overhead
6. Transfer of remains to funeral home
7. Embalming
8. Other preparation of the body
9. Use of facilities and staff for viewing
10. Use of facilities and staff for funeral ceremony
11. Use of facilities and staff for memorial service
12. Use of facilities and staff for graveside service
13. Hearse
14. Limousine
15. Either individual casket prices or the range of casket prices that appear on CPL
16. Either individual outer burial container prices or the range of outer burial container prices that appear on OBC PL
Term
Alternative Price Lists for Special Groups (3)
Definition
1. Children and infants
2. Government agencies
3. Religious groups or memorial societies
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