Section 4.1: The FTC Funeral Rule

The FTC Funeral Rule: Compliance and Consumer Protection

The Federal Trade Commission (FTC) Funeral Rule (16 C.F.R. Part 453) is one of the most critical legal frameworks governing the funeral service profession in the United States. Enacted on April 30, 1984, and subsequently revised in 1994, the Funeral Rule was established to protect consumers during a period of high vulnerability. The Rule requires funeral providers to give consumers accurate, itemized price information and prohibits misrepresentations regarding legal and cemetery requirements, embalming, and preservative claims.

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1. The General Price List (GPL)

The General Price List (GPL) is the cornerstone of the FTC Funeral Rule. It is a printed or typewritten list that contains the prices of all goods and services regularly offered by the funeral home.

Distribution Triggers and Timing

A funeral director must distribute the GPL for retention (the consumer must be allowed to keep the physical copy) whenever a face-to-face discussion about funeral arrangements, goods, services, or prices begins.

• The Trigger: The trigger is any face-to-face inquiry about prices or offerings.
• Timing: The GPL must be handed to the consumer before any actual discussion of specific funeral options or pricing begins. It cannot be shown in a binder and taken back; it must be a physical copy that the consumer can walk away with.
• Location: This rule applies regardless of location. Whether the meeting occurs in the funeral home arrangement office, a private residence, a hospital room, or a public establishment, the director must present the GPL.
• Telephone Disclosure: Funeral homes must provide accurate pricing and service information over the telephone to any caller who inquires. Unlike face-to-face meetings, telephone inquiries do not require mailing a GPL, but the provider cannot require the caller to give their name, address, or phone number as a condition for receiving pricing information.

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2. The 16 Itemized Items

To prevent "bundling" and ensure consumers buy only what they want, the Funeral Rule mandates that the GPL list individual prices for 16 specific goods and services:

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3. The 6 Mandatory Disclosures

The Funeral Rule requires six specific disclosures to be placed on the GPL. They must be written exactly as drafted by the FTC, with no changes to the wording.

1. Consumer Right of Selection: Placed next to the basic services fee, this informs consumers that they have the right to choose only the items they want, except for any non-declinable fees.
2. Embalming Disclosure: States that embalming is not required by law except in certain special cases, and that it is not required for direct cremation or immediate burial.
3. Alternative Container Disclosure: Informs consumers that they can use alternative containers (such as cardboard or fiberboard) for direct cremation.
4. Basic Services Fee Disclosure: Explains that the fee for basic services is non-declinable and covers overhead and staff costs.
5. Casket Price List (CPL) Disclosure: Informs consumers that a separate, complete Casket Price List is available for review before they discuss or look at caskets.
6. Outer Burial Container Price List (OBCPL) Disclosure: Informs consumers that a separate, complete Outer Burial Container Price List is available for review before they look at containers.

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4. Casket and Outer Burial Container Price Lists

If the individual prices of caskets and outer burial containers are not listed directly on the GPL, the funeral home must maintain separate, standalone lists: the Casket Price List (CPL) and the Outer Burial Container Price List (OBCPL).

• Trigger and Timing: These lists must be presented to the consumer before they begin discussing caskets or outer burial containers, and before they are shown the physical selection room, an online catalog, or a brochure.
• Retention: Unlike the GPL, the funeral home is not required to give the CPL or OBCPL to the consumer for retention. The director can retrieve the lists after the selection process is complete.
• Content: The lists must include the name of the funeral home, the effective date, and the specific details (retail price, material composition, and model/interior description) of each casket or container regularly offered.

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5. Statement of Funeral Goods and Services Selected

The Statement of Funeral Goods and Services Selected is a transaction-specific contract and disclosure document provided to the consumer at the conclusion of the arrangement conference. It must contain:

1. Itemized Costs: A breakdown of every individual item selected, along with cash advance items (fees paid to third parties, such as obituary notices, flowers, or clergy honorariums).
2. Legal and Cemetery Disclosures: A written explanation of any legal, cemetery, or crematory requirements that mandate the purchase of specific items (e.g., if a cemetery requires an outer burial container, the director must write this reason on the statement).
3. Embalming Reason: The specific reason for embalming must be written on the statement (e.g., "family requested viewing" or "state law requires embalming for transport across state lines").
4. Cash Advance Markup: If the funeral home charges a markup or receives a rebate on any cash advance item, it must state this fact on the document.

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6. Record Retention

Funeral homes must retain copies of all price lists (GPL, CPL, OBCPL) and completed, signed Statements of Funeral Goods and Services Selected for at least one year from the date they were last distributed or signed. These documents must be readily accessible for inspection by state regulatory boards and the FTC.