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Complying With the Funeral
Rule
Contents
Introduction
Who
Must Comply With the Funeral Rule?
Definition of “funeral
provider”
Definition of “funeral goods”and
“funeral services”
Does the Rule Apply to
Pre-Need Arrangements?
The
General Price List (GPL)
Who Gets a GPL?
When Should
the GPL Be Offered?
What about Phone or Mail
Inquiries?
Does the Rule Require the GPL to
Be Given to Keep?
What About the GPL and
Pre-need Arrangements?
Information
Required on the GPL
Identifying
Information
Required Disclosures on the
GPL
Right of
Selection
Embalming
Alternative
Containers
Professional Services
Fee
Casket Price List
Outer Burial
Container Price List
Required Itemized Prices
on the GPL
Forwarding/Receiving
Remains,
Direct Cremation, and Immediate
Burial
Basic Services of Funeral Director and
Staff
Transfer of Remains to Funeral
Home
Embalming
Other Preparation of the
Body
Use of Facilities and Staff for
Viewing
Use of Facilities and Staff for
Funeral Ceremony
Use of Facilities and Staff
for Memorial Service
Use of Equipment and
Staff for Graveside
Service
Hearse
Limousine
Casket
Outer
Burial Container
Alternative
Price Lists
Children and
Infants
Government Agencies
Religious
Groups and Memorial Societies
The
Casket Price List (CPL): Information and
Use
The
Outer Burial Container (OBC) Price List:
Information and Use
Statement
of Funeral Goods and Services Selected: Cost
Information and Disclosures
Legal
Requirements
Embalming
Cash Advance
Items
Telephone
Price Disclosures
Misrepresentations
Prohibited by the Rule
Embalming
Casket for Direct
Cremation
Outer Burial Container
Legal and
Cemetery Requirements
Preservative and
Protective Value Claims
Cash Advance
Items
Other
Misrepresentations
What
Consumers Cannot Be Required to Purchase
Prior
Approval for Embalming
Recordkeeping
Comprehension
of Disclosures
State
Exemption Provisions
Sample
Price Lists
Endnotes
Part 453 — Funeral Industry
Practices Revised Rule
Introduction
These guidelines are intended
to help you, the funeral provider, comply with
the Federal Trade Commission (FTC or
Commis-sion) Funeral Rule. The Funeral Rule went
into effect on April 30, 1984. The Commission
revised the Rule early in 1994; revisions became
effective later that year.
The Funeral Rule requires you
to give consumers accurate, itemized price
information and various other disclosures about
funeral goods and services. In addition, the
Rule prohibits you from:
- misrepresenting legal, crematory, and
cemetery requirements;
- embalming for a fee without permission;
- requiring the purchase of a casket for
direct cremation;
- requiring consumers to buy certain funeral
goods or services as a condition for furnishing
other funeral goods or services; and
- engaging in other deceptive or unfair
practices.
If you
violate the Funeral Rule, you may be
subject to penalties of up to $10,000 per
violation.
These guidelines do not amend
or modify the Rule. They explain the
requirements of the revised Funeral Rule and
discuss how to prepare documents required by the
Rule — the General Price List, the Casket Price
List, the Outer Burial Container Price List, and
the Statement of Funeral Goods and Services
Selected. The guidelines also include sample
price lists and a sample itemized statement
form. These guidelines represent the FTC staff's
view of what the law requires. They are not
binding on the Commission.
Who Must Comply With
the Funeral Rule?
All "funeral providers" must
comply with the Rule. You are a funeral provider
if you sell or offer to sell both funeral goods
and funeral services to the public.
Funeral goods are all
products sold directly to the public in
connection with funeral services.
Funeral services
are:
- services used to care for and prepare bodies
for burial, cremation, or other final
disposition; and
- services used to arrange, supervise, or
conduct the funeral ceremony or final
disposition of human remains.
You are a funeral provider if
you sell or offer to sell funeral goods
and both types of funeral services. You
do not have to be a licensed funeral director
and your business does not have to be a licensed
funeral home to be covered by the Funeral Rule.
Cemeteries, crematories, and other businesses
can also be "funeral providers" if they market
both funeral goods and services.
You must comply with the Rule
even if a particular consumer buys only goods or
only funeral services, but not both. If you
offer to sell both goods and services, you must
comply with the Rule for every customer.
However, you are not covered by the Rule if you
sell only funeral goods, such as caskets, but
not services relating
to the disposition of remains.
You are covered by the Rule
even if you organize your business to sell goods
through one company and services through
another. If you are a funeral provider, you
cannot avoid being covered by the Rule by
restructuring your business.
Does
the Rule Apply to Pre-Need
Arrangements?
The Rule's requirements, as
described on the following pages, apply to both
pre-need and at-need funeral arrangements.
In pre-need situations, you
must comply with all Rule requirements at the
time funeral arrangements are pre-planned. You
also need to comply with the Rule after the
death of the individual who made pre-need
arrangements. If the survivors inquire about
goods or services, alter the pre-planned
arrangements, or are required to pay additional
sums of money, you must give them all relevant
disclosures and price lists. For example,
survivors may be asked to pay additional amounts
if the pre-paid plan does not guarantee prices
at the time of death. In other cases, survivors
may change arrangements specified in the
pre-need plan, adding or subtracting certain
goods or services. In both situations, the
requirements of the Rule apply. You must give
the survivors relevant price lists, as well as
an itemized Statement of Funeral Goods and
Services Selected (see pages 4-5 and 19).
You also must comply with the
Rule if you sell pre-need contracts on behalf of
one or more funeral homes, but do not yourself
provide funeral goods and services. In such a
case, even though you don't provide the funeral
items, you are an agent of a funeral provider
and therefore are covered by the Rule.
The Rule does not apply to
pre-need contracts entered into before the Rule
went into effect in 1984. However, if a pre-need
contract signed before 1984 is modified after
1984, the modification triggers all of the
Rule's requirements.
Example: Mr. Green made
pre-need arrangements in 1980; he dies in 1994.
At the time of his death, his wife wants to
change the casket specified in the pre-need
contract and to add visitation hours. Because
Mrs. Green is changing the contract after 1984,
the funeral provider must comply with all of the
Rule's requirements, including giving Mrs. Green
a General Price List, showing her a Casket Price
List, and providing her with an itemized
Statement of Goods and Services Selected.
Note: In a situation
like the above example, you should check your
state law to determine whether it allows you to
alter the terms of such a
contract.
The
General Price List
The General PriceList
(GPL) is the key stone of the Funeral Rule. It
must contain identifying information (see page
6), itemized prices for the various goods and
services that you sell (see pages 9-13), and
other important disclosures (see pages 6-9). The
GPL enables consumers to comparison shop and to
purchase, on an itemized basis, only the goods
and services they want.
Who Gets a GPL?
You must give the General
Price List to anyone who asks, in
person, about funeral goods, funeral services,
or the prices of such goods or
services. You must give the GPL to such
individuals to keep. The request for information
does not have to come from a consumer or someone
who wants to make funeral arrangements now or in
the future. You must give a GPL to all persons
who inquire about funeral arrangements. This may
include competitors, journalists, and
representatives of businesses, religious
societies, government agencies, or consumer
groups.
Note: If someone asks
you about the goods and services that you sell,
you must give that person a General Price List.
If you are uncertain whether the Rule applies in
a particular situation, it would be sensible to
provide the list.
When Should the GPL Be
Offered?
You do not have to hand out
the General Price List as soon as someone walks
into
your business. But, you must offer the
price list when you
begin to discuss any of the
following:
- the type of funeral or disposition that you
can arrange;
- the specific goods and services that you
offer; or
- the prices of your goods and services.
Before giving a GPL to a
bereaved individual, you may offer your
condolences and discuss preliminary matters like
veteran's benefits or death certificates.
The triggering event for
giving out the GPL is a
face-to-face meeting.
The face-to-face meeting can occur anywhere, not
just at the funeral home. For example, you must
give out a General Price List even if the
discussion of prices or arrangements takes place
in the family's home or while removing the
deceased from a hospital or a nursing home. You
should tell your employees to carry extra price
lists with them.
Exception:
You are not required to offer a General Price
List if you remove the deceased for
transportation to the funeral home and, at that
time, only request the authorization to embalm.
When you request authorization to embalm,
however, you also must:
Disclose that embalming is not
required by law (except in special cases, if
relevant); and
Refrain from further
discussion about prices or the selection of
funeral goods or services while you remove the
deceased. Any further discussion of prices or
the selection of goods or services at this time
would trigger the requirement to provide a
GPL.
What
About Phone or Mail Inquiries?
You must give certain
information to people who telephone (see page
22), but the Rule does not require you to send
callers a General Price List. Similarly, you do
not have to send a GPL in response to mail
inquiries about funeral goods and services. Of
course, you certainly are free to send a GPL to
someone who calls or writes for information if
you wish to do so. However, if a telephone or
mail inquiry is followed up by a meeting at the
funeral home or elsewhere, you must provide a
GPL at that time.
Note: Some states
require funeral providers to mail a price list
upon request. You should check to see what the
requirements are in your state.
Does the Rule Require the
GPL Be Given to Keep?
A verbal offer of a GPL is not
enough to comply with the Rule. You cannot
merely tell consumers that a GPL is available
for inspection. You also cannot show them a GPL
in a booklet or binder where it appears that
there is only one copy available or that the
booklet is solely for the funeral director's
use. You must physically offer consumers a
General Price List that they can keep and take
home with them. If the consumer does not want to
accept or look at the General Price List, you do
not have to do anything else. However, you
should do nothing to discourage customers from
looking at the GPL, such as telling them that it
is unnecessary or difficult to understand.
Note: You cannot charge
a fee for the price list or place any conditions
upon giving consumers information that the Rule
requires you to give to them. You must give all
required information to anyone who asks, free of
charge.
What About the GPL and
Pre-need Arrangements?
You must give out a General
Price List in all pre-need situations. Because
you may sell different goods and services on a
pre-need basis, your pre-need GPL may vary from
the GPL you use in at-need situations. However,
any General Price List that you use for pre-need
arrangements must include all required
disclosures (see pages 6-9) and offer goods and
services on an itemized basis (see pages 9-13).
You cannot offer only package funerals to
pre-need customers.
In addition, as stated above
(see pages 2-3), you must give a GPL to anyone
who wishes to modify the funeral goods or
services already purchased under a pre-need
contract or to a survivor who must pay an
additional sum because prices have increased
since the time the arrangements were
pre-planned.
Example: Mr. Stone made
pre-need arrangements before his death. His wife
wants to change the casket and the services that
he bought under the pre-need contract. You must
give Mrs. Stone a General Price List at the
beginning of the discussions and show her a
Casket Price List before she looks at any
caskets.
Information Required on the
GPL
Identifying Information
The General Price List should
be printed or typewritten, and must contain the
following identifying information:
- the name, address, and telephone number of
the funeral provider's place of business,
including (where relevant) the address and
telephone number for each branch;
- the caption: "General Price List;" and
- the effective date of the price list.
Required Disclosures on the
GPL
The Rule also requires you to
make six disclosures on your General Price
List.(1) These disclosures discuss:
- The consumer's right to select only the
goods and services desired;
- Embalming;
- Alternative containers for direct cremation;
- The basic services fee;
- The Casket Price List; and
- The Outer Burial Container Price List.
Each of these disclosures is
discussed in the following sections. You must
place these required disclosures on the General
Price List exactly as the Rule provides. (See
also Sample 1 GPL at the end of this
publication.)
In addition, you must use the
identical wording given in the Rule.
You cannot edit or paraphrase.
Note: You can include
additional information, such as a reference to
your own state laws. But, you cannot change the
FTC language or add anything that will modify
the FTC language.
1. Right of Selection
The first disclosure informs
consumers that they have a right to select only
the items they want to buy, besides a
non-declinable basic services fee (see pages
11-12 for a detailed description of this
fee).(2) You should place this statement
immediately above the prices of the goods and
services that you offer. The statement should
read as follows:
The goods and services shown
below are those we can provide to our customers.
You may choose only the items you desire. However, any funeral
arrangements you select will include a charge
for our basic services and overhead. If
legal or other requirements mean you must buy
any items you did not specifically ask for, we
will explain the reason in writing on the
statement we provide describing the funeral
goods and services you
selected.
You must include the third
sentence of the disclosure, indicated in
bold-face above, if customers cannot decline the
basic services fee. You may add the phrase "and
overhead" after the word "services," as shown
above, if the fee includes the recovery of
overhead costs.
2. Embalming
The second disclosure tells
consumers that the law does not require
embalming.(3) The statement should read as
follows:
Except in certain
special cases, embalming is not
required by law. Embalming may be necessary,
however, if you select certain funeral
arrangements, such as a funeral with viewing. If
you do not want embalming, you usually have the
right to choose an arrangement that does not
require you to pay for it, such as direct
cremation or immediate burial.
You do not need to include the
phrase, "except in certain special cases,"
indicated in bold-face above, if state or local
law in the area where you do business does not
require embalming under any
circumstances. If you want to add
information about state law requirements, you
can do so after the FTC disclosure. You should
place this disclosure in immediate conjunction
with the price for embalming.
Note: "In
immediate conjunction" means that the embalming
disclosure must appear directly next to the
price for embalming. You should not put the
disclosure on a separate page or anywhere else
on the GPL apart from the embalming price. (See
also Sample 1 GPL at the end of this
publication.)
3. Alternative Containers
The third disclosure informs
consumers that they may use alternative
containers (see the revised Rule for a full
definition of this term) for direct
cremations.(4) This disclosure must read as
follows:
If you want to arrange a
direct cremation, you can use an alternative
container. Alternative containers encase the
body and can be made of materials like
fiberboard or composition materials (with or
without an outside covering). The containers we
provide are (specify
containers).
You should place this
disclosure in immediate conjunction with
(directly next to) the price range for direct
cremation. At the end of the last sentence, you
should describe the specific kind of
container(s) that you offer. If you don't
arrange direct cremations, you don't need to
include this disclosure on the GPL.
4. Basic Services Fee
The fourth disclosure tells
consumers about any "basic services fee" (the
fee for the professional services of the funeral
director and staff) that you will add to the
total cost of the funeral arrangements.(5) This
basic services fee could include a charge for
the services you perform in conducting the
arrangements conference, planning the funeral,
securing the necessary permits, preparing the
notices, and coordinating the cemetery or
crematory arrangements. This fee also may
include overhead that you have not allocated
elsewhere. You can include this fee on your
General Price List in one of two ways:
Option 1: If you list a
separate basic services fee and the charge is
non-declinable (the consumer does not have the
option of declining the charge), you must
provide the following disclosure:
This fee for our basic
services and overhead will be
added to the total cost of the funeral
arrangements you select. (This fee is already
included in our charges for direct cremations,
immediate burials, and forwarding or receiving
remains.)
If you decide on Option 1,
this disclosure must appear together with the
price for the basic services and with a
description of the services you include for that
price. (You cannot place this disclosure on a
separate page or anywhere else on the GPL apart
from the basic services price.) If this basic
services fee is non-declinable, the price also
must include all charges for the recovery of
overhead that you have not allocated elsewhere.
In this situation, the first sentence of your
disclosure can include the phrase "and
overhead" after the word
"services," as shown above.
Option 2: Instead of charging
a separate basic services fee, you can include
the services fee in your casket prices. With
this alternative, you must include the following
disclosure:
Please note that a fee of
(specify dollar amount) for the use of
our basic services and overhead
is included in the price of our caskets. This
same fee shall be added to the total cost of
your funeral arrangements if you provide the
casket. Our services include
(specify).
If you decide on Option 2, the
fee should include all charges for the recovery
of overhead costs not allocated elsewhere, and
you may add the phrase "and
overhead" after the word
"services" in the first sentence,
indicated in bold-face above. The disclosure
must appear on the GPL together with the prices
for the individual caskets or together with the
casket price range if you have a separate Casket
Price List.
5. Casket Price List
The fifth disclosure tells
consumers that a Casket Price List is
available.(6) You may list casket prices either
on the General Price List or on a separate
"Casket Price List." If you use a separate
Casket Price List, your GPL should state the
range of prices for the caskets you sell,
together with the following disclosure:
A complete price list will be provided
at the funeral home.
6. Outer Burial Container
Price List
The sixth disclosure informs
consumers that an Outer Burial Container Price
List is available.(7) Again, you can either put
the prices for the outer burial containers on
your General Price List, or you can provide a
separate "Outer Burial Container Price List." If
you use a separate price list, your GPL should
state the range of prices for the outer burial
containers you sell, together with the following
disclosure: A complete price list will
be provided at the funeral home.
If you put the prices for the
outer burial containers on your General Price
List, you also must include the following
disclosure in immediate conjunction with
(directly next to) the outer burial container
prices.
In most areas of the
country, state or local law does not
require that you buy a container to surround the
casket in the grave. However, many cemeteries
require that you have such a container so that
the grave will not sink in. Either a grave liner
or a burial vault will satisfy these
requirements.
If instead you provide a
separate price list for outer burial containers,
then you must include the above disclosure on
your Outer Burial Container Price List (see page
17). You don't have to include the phrase, "in
most areas of the country," indicated in
bold-face above, in the disclosure if your state
or local law does not require a container to
surround the casket in the grave.
Required Itemized Prices on
the GPL
The Rule requires you to
itemize the prices for certain goods and
services so consumers may choose only those
elements of a funeral that they want. You must
list the following 16 specified items of goods
and services on the GPL, together with the price
for each item:(8)
- Forwarding of remains to another funeral
home;
- Receiving remains from another funeral
home;
- Direct cremation;
- Immediate burial;
- Basic services of funeral director and
staff, and overhead;
- Transfer of remains to funeral home;
- Embalming;
- Other preparation of the body;
- Use of facilities and staff for viewing;
- Use of facilities and staff for funeral
ceremony;
- Use of facilities and staff for memorial
service;
- Use of equipment and staff for graveside
service;
- Hearse;
- Limousine;
- Either individual casket prices or the range
of casket prices that appear on the Casket Price
List; and
- Either individual outer burial container
prices or the range of outer burial container
prices that appear on the Outer Burial Container
Price List.
You can list these items in
any order you want. You only have to list the
items that you actually offer. If you do not
offer one or more of the 16 items, you need not
list those items on the General Price List. In
addition to these 16 items, you also may list
other items that you offer, such as
acknowledgement cards and cremation urns. You
also may provide prices for package funerals on
your GPL. However, you must offer any package
funerals in addition to and not in
place of the required itemized
prices.(9)
The itemized prices on
your General Price List, as well as your Casket
Price List and Outer Burial Container Price
List, should be accurate and up-to-date. These
prices should reflect the prices that you
actually charge your customers.
Of course, you can offer a
discount when there are special circumstances,
such as arrangements for a friend or relative or
a family that otherwise could not afford your
services. The Rule does not prevent you from
doing this. However, you should not inflate the
prices on any of your price lists in order to
offer all or most of your customers a discount.
In that case, the "discounted" prices would be
the accurate prices and should be reflected on
the price lists.
Items 1-4: Minimal
Services
Four items that the Rule
requires you to list are: (1) forwarding of
remains; (2) receiving remains; (3) direct
cremation; and (4) immediate burial. Unlike the
rest of the goods and services that you must
list on the GPL, the prices for these four items
must include any fee that you will charge
consumers for the basic professional services of
the funeral director and
staff.
Example: Ms.
James wants to arrange an immediate burial for
her father. In addition, she chooses
acknowledgement cards, use of a limousine, and a
graveside service. You should charge her the fee
for an immediate burial plus the fees for the
other items that she wants. But, you should not
charge her an additional non-declinable basic
services fee. A charge for your basic
services is already included in the price for
the immediate burial. The required
disclosure about the basic services fee (see
pages 11-12) informs the consumer of this
fact.
For forwarding of
remains and receiving
remains, the GPL should list one
price for each of these items and describe all
services you will provide for the quoted price.
The prices for these items should include all
charges relating to each service, including any
basic services fee and any facilities or
equipment fees.
For direct
cremations, your GPL must state a
price range, along with the required disclosure
about the availability of an alternative
container (see page 7), then list each of the
following options within the range:
- one price where the consumer provides the
casket or container; and
- a separate price for each direct cremation
offered where you provide an alternative
container. The Rule requires you to offer an
alternative container for use in direct
cremations if you provide direct cremations.
(See pages 23-24.)
You also must describe in the
GPL the services and container provided for each
price. If you wish, you also may list other
options, such as direct cremation with a
memorial service or direct cremation with
scattering of ashes.
The price of the actual
cremation of the deceased may or may not be
included in your price for direct cremation. If
you own a crematory, it would be appropriate to
include the cremation charge in this fee.
However, if you use a crematory that someone
else owns, you may treat this charge as a cash
advance item. In that case, you should make
clear to the customer that there will be an
added charge by the crematory.
For immediate
burials, you must give a price
range, together with each of the following
separate options within the range:
- one price where the purchaser provides the
casket; and
- a separate price for each form of immediate
burial offered where you provide a casket or
alternative container. (You are not required to
make an alternative container available for this
purpose. However, you may choose to offer this
option.)
You also must describe in the GPL
the services and container provided for each
price. If the immediate burial option is
available with any casket on your Casket Price
List, the General Price List can simply state
the price of the service and refer the customer
to the Casket Price List for casket prices.
Item 5: Basic services
of funeral director and staff (and
overhead)
The charge for services of
funeral director and staff is a fee for the
basic services that you furnish in arranging any
funeral.(10) This is the "basic services fee"
that is discussed in the Required Disclosures
section. If the customer cannot decline this
fee, the disclosure that appears on pages 7-8 is
required.
This basic services fee should
include services that are common to virtually
all forms of disposition or arrangements that
you offer, such as conducting the arrangements
conference, securing the necessary permits,
preparing the notices, sheltering of remains,
and coordinating the arrangements with the
cemetery, crematory, or other third parties. The
basic services fee should not include charges
related to other items that must be separately
listed on the General Price List and that the
customer may decline to purchase.
Note: You
should include any charges for the ordinary
sheltering of remains by your funeral home in
this basic services fee. However, you can list a
separate charge for sheltering of remains if: 1)
a significant percentage of your customers do
not use the funeral home to hold the remains at
any point, or 2) you receive a request to hold
the remains for an unusually long period of
time.
The basic services fee also
may include overhead from various aspects of
your business operation, such as the parking
lot, reception and arrangements rooms, and other
common areas. It also may include insurance,
staff salaries, taxes, and fees that you must
pay. Alternatively, instead of including all
overhead in your basic services fee, you can
spread the overhead charges across the various
individual goods and services you offer. As a
third alternative, you can combine the first two
approaches: spread some portion of the overhead
charges across the individual items, while
including the remainder of such charges in your
basic services fee.
Note: These
are the only ways to recoup overhead costs. In
addition, if this basic services fee is
non-declinable, the fee must include any charges
for overhead that have not been allocated to the
other goods and services.
You have two options for
listing your basic services fee on the General
Price List.
Option 1: You may list a
separate price for the basic services of the
funeral director and staff, together with a list
of the principal services provided for the price
and the required disclosures (see pages 7-8). If
consumers cannot decline this fee, you should
include in this separate price all charges for
"unallocated overhead" — that is all overhead
not distributed among the other items listed on
the GPL.
Option 2: Instead of charging
a separate basic services fee, you may include
the fee in your casket prices. With this
alternative, you must include the appropriate
disclosure (see page 8) on the General Price
List, together with the prices for the
individual caskets or with the casket price
range (if you have a separate Casket Price
List). This fee also must include all charges
for the recovery of unallocated overhead. As the
disclosure indicates, you must specify the
amount of the basic services fee that is
included in the price of the caskets. If the
customer provides a casket obtained elsewhere,
that same basic services fee must be added to
the total cost of the arrangements selected.
The Rule expressly states that
the basic services fee is the only
non-declinable fee allowed for services,
facilities, or unallocated overhead, unless
state or local law requires otherwise. Other
than the basic services fee, you cannot charge
any separate fee for overhead. Charging a second
non-declinable fee, such as a "basic facilities
fee" or a "casket handling fee," in addition to
the basic services fee would violate the Rule.
Moreover, you cannot list fees for "additional
services" of the funeral director and staff, if
those fees should be included in the basic
services fee or in one of the other items
required to be listed on the GPL.
Example: You
have a non-declinable fee for the basic services
of funeral director and staff. You also list the
following fee on your General Price List:
Additional Services of the Funeral Director and
Staff. This charge includes: a) coordinating and
directing funeral ceremony; b) paying
competitive salaries to employees; c) providing
24 hour on-call service to each family; d)
maintaining funeral service licensing; and e)
complying with federal and state codes and
regulations.
This fee for additional
services violates the Rule. All of the charges
listed should be included elsewhere on the GPL.
You should include charge (a) for coordinating
and directing the funeral ceremony in the
separate charge for a funeral ceremony. (See the
discussion of this charge on page 9.) The other
items, (b) through (e), relate to basic
overhead. You either should include such charges
in the basic services fee or allocate these
costs among all the items listed on the GPL.
Items 6 -
16
You must list the following
items separately with their respective prices.
The charge for each item should include all
service fees and any equipment or facility
charges for providing that particular good or
service. (You will not, however, include any
portion of the "basic services fee," discussed
above, in any of these items.)
Transfer of remains to
funeral home. You can choose any
pricing method, such as a flat fee, an hourly
charge, or a mileage charge. For example, you
can charge a flat fee with or without an
additional mileage charge for distances beyond a
certain specified radius.
Embalming.
Your price for embalming should include use of
the preparation room, as well as the
professional services, equipment, and materials
involved in performing embalming. In addition,
as discussed on page 7, you must tell consumers
that the law does not require embalming.
Other preparation of
the body. This charge should include
such services as cosmetic work to prepare the
deceased for viewing. Under this category, you
can also show a price for washing and
disinfecting when that procedure is used instead
of embalming.
Use of facilities and
staff for viewing. You may charge a
flat fee or an hourly fee for the use of your
facilities for viewing. Your price for a viewing
should include charges for both the services of
staff and the facilities used in connection with
a viewing. You should not list two separate
charges relating to a viewing, such as one for
the facilities and another for the staff
services. However, if you provide staff services
for viewing held at another facility, such as a
church or a home, you should list a separate fee
for such services. (In this situation, a
facilities charge would not be appropriate
because your own facilities are not being
used.)
Use of facilities and
staff for funeral ceremony. The charge
for a funeral ceremony, that is, a commemorative
service with the body present, at the funeral
home should include both the use of facilities
and the necessary staff services. You should not
list two separate charges relating to a funeral
ceremony, such as one for the facilities and
another for the staff services. However, if you
provide staff services for a funeral ceremony at
another facility, such as a church, you should
list a separate fee for such services.
Use of facilities and
staff for memorial service. This is a
charge for a commemorative service without the
body present. The charge should include both the
use of facilities and the staff services. You
should not list two separate charges relating to
a memorial service, one for the use of
facilities and another for the staff services.
However, if you provide staff services for a
memorial service at another facility, such as a
church, you should list a separate fee for such
services.
Use of equipment and
staff for graveside service. Some
families may choose to have a graveside service
instead of a funeral ceremony at the funeral
home. Your charge for this service should
include both staff services and any equipment
you may provide (such as a tent and chairs). You
should not list two separate charges relating to
a graveside service, one for equipment and
another for staff services. If your charge for a
funeral ceremony normally includes a committal
service at the grave following the funeral, you
can continue this practice, or you may offer a
separate charge for a committal service
following a funeral ceremony. The separate
charge for a graveside service is intended for
those situations where there is no funeral
ceremony at the funeral home or elsewhere.
Hearse. You
can use any pricing method for the use of a
hearse, such as a flat fee, an hourly charge, or
a mileage charge. For example, you can charge a
flat fee with or without an additional mileage
charge for distances beyond a certain specified
radius.
Limousine.
You can use any pricing method for the use of a
limousine, such as a flat fee, an hourly charge,
or a mileage charge. For example, you can charge
a flat fee with or without an additional mileage
charge for distances beyond a certain specified
radius.
Casket
prices. You can list casket prices in
either of two ways: (1) you can list a casket
price range, with the disclosure about the
availability of the Casket Price List (see page
8); or (2) you can list the prices of individual
caskets on your General Price List.
Outer burial container
prices. As with casket prices, you can
list outer burial container prices in either of
two ways: (1) you can list an outer burial
container price range, with the relevant
disclosure about the Outer Burial Container
Price List (see pages 8-9); or (2) you can list
the prices of individual containers on your
General Price List.
Alternative Price Lists for
Special Groups
In certain limited situations,
discussed immediately below, you may use
alternative price lists.
Remember:
Even if you use alternative price lists, you
still must comply with all Rule provisions,
including mandatory disclosures and itemized
prices.
1. Children and
Infants
You can set different prices
for funeral arrangements for children and
infants. You can list the different fees in two
ways. You can place these items on your General
Price List, Casket Price List and Outer Burial
Price List, along with your regular offerings;
or you can prepare separate price lists for
these arrangements. If you prepare separate
price lists, you need not give them out to
anyone except those persons inquiring about a
funeral for a
child or an infant.
2. Government
Agencies
Some funeral providers enter
into agreements with government agencies to
provide funeral arrangements for indigent
persons (or other persons entitled to a
government benefit). When entering into such
arrangements, you must follow all Rule
requirements, including giving price lists to
the government agent at the time you make or
discuss such arrangements. You can add the
prices for these special situations to your
regular price list or prepare a separate price
list for these arrangements. If you prepare a
separate price list, you need not make it
available to anyone except the government agency
or persons who qualify for the special
arrangements.
Some government agencies
choose to contract for funeral arrangements on a
package basis. You can offer funeral
arrangements to anyone — including a government
agency — on a package basis, as long as the
funeral packages are offered in addition to, not
in place of, itemized prices.
When qualifying persons
inquire about these package funeral
arrangements, you still should provide the GPL,
with itemized prices and disclosures, and comply
with all other Rule requirements at this
time.
Note: You
should check your state laws to determine
whether arrangements handled as part of an
agreement with a government agency can be
supplemented or modified by qualifying
persons.
3. Religious Groups
and Memorial Societies
Some funeral providers enter
into agreements with religious groups, burial
societies, or memorial societies to arrange
funerals for their members at special prices.
You are free to enter into such arrangements,
but you must still comply with the Rule's
requirements. You must provide price lists to
representatives of these groups when they
inquire about funeral arrangements on behalf of
their members. In addition, if an individual
group member inquires in-person about funeral
arrangements, you must provide the individual
with your price lists. Even if a member chooses
a package available only to society members, the
member must have the opportunity to look at your
price lists. You can either have separate price
lists for qualifying members or include such
prices on your regular price lists.
The
Casket Price List: Information and Use
If you do not list the retail
price of each casket on your General Price List,
you must prepare a separate printed or
typewritten Casket Price List
(CPL).(11)
Information to be
Included
The CPL must include
the following basic information:
- the name of your business;
- the caption: "Casket Price List;"
- the effective date for the Casket Price
List; and
- the retail price of each casket and
alternative container that does not require
special ordering, with enough information to
identify it.
You must give enough
descriptive information about each casket on the
CPL to enable consumers to identify the specific
casket or container and understand what they are
buying. For example, the CPL could describe the
exterior appearance (including the gauge of
metal or type of wood), the exterior trim, and
the interior fabric. You also may give any other
information, such as a photograph or
manufacturer name and model number. However, a
photograph or model number alone is not a
sufficient description under the Rule.
You need list only those
caskets that you usually
offer for sale that do not require
special ordering, as well as the alternative
container(s) you offer for direct cremation.
"Special ordering" means purchasing a casket or
container that is not in stock and not part of
your regular offerings to your customers. Except
for the requirement that you make an alternative
container available if you offer direct
cremation, the Rule does not require you to
offer any particular caskets or alternative
containers. However, both caskets and
alternative containers should be listed on the
CPL. You should not have a separate list for
alternative containers.
The Rule does not require you
to list the caskets or containers that you offer
in any particular format or order. The Casket
Price List can be in any form, including in a
notebook or on a chart, as long as it contains
the required information, displayed in a clear
and conspicuous manner.
Moreover, you do not have to
include customized caskets on your CPL, or list
caskets that you keep in your inventory to fill
pre-existing, pre-need contracts, but which you
no longer regularly offer for sale. Nor is it
necessary to prepare a new price list if a
casket or container is temporarily out-of-stock.
You can simply tell the consumer which casket is
not available when you give the consumer the
CPL. Also, if a particular casket is available
in a variety of interior materials and designs
or exterior hardware and finishes, you can
simply note that fact on the Casket Price List;
you need not list each variation separately.
(See also Sample 2 CPL at the end of this
publication.)
Using the
CPL
You must show the Casket Price
List to anyone who asks in person about the
caskets or alternative containers that you offer
or inquires about their prices. You must offer
the CPL when you begin discussing
caskets or alternative containers — but before
showing these items. Consumers
must be able to look at the price list before
discussing their options or seeing the actual
caskets.
Note:
Consumers should not first learn of casket
prices by entering the casket showroom and
reading price cards placed on individual caskets
or by having the funeral director recite such
information orally.
You can use individual price
cards, but only in addition to a Casket Price
List. Unlike the General Price List, you do not
have to give the consumer a Casket Price List to
keep. However, you may do so if you wish.
The Rule does not require that
you display the caskets in any specific manner.
(Note, however, that many states have
regulations regarding the manner of display.) In
fact, the Rule does not require that you display
any caskets. Some funeral providers present
their selections through a book containing
photographs of the various caskets offered for
sale. In this case, you must incorporate in the
book all the information required for the CPL
(see page 15), including the heading "Casket
Price List."
If you use a manufacturer's or
supplier's casket showroom outside of the
funeral home, you must offer the CPL when the
discussion of caskets begins. If you begin
discussing caskets in your place of business,
you must offer the Casket Price List at that
time. However, if you do not begin discussing
caskets until you arrive at the manufacturer's
or supplier's showroom, you do not have to show
a CPL until you arrive and the discussion
begins.
In addition to using a CPL as
described above, you must show a Casket Price
List to anyone who wishes to modify the
particular casket already purchased under a
pre-need contract.
Example: Ms.
Todd's father entered into a pre-need contract
in 1989. If Ms. Todd chooses to upgrade the
casket provided under the pre-need contract or
inquires about other casket offerings, you
should show her a CPL.
The Outer Burial Container
Price List: Information and Use
If
you sell outer burial containers and do not list
the retail price of each such container on your
General Price List, you must prepare a separate
printed or typewritten Outer Burial Container
Price List (OBC Price List).(12) The term "outer
burial container" refers to any container
designed to be placed around the casket in the
grave. Such containers may include burial
vaults, grave boxes, and grave liners.
Information to be Included
on the OBC Price List
The OBC Price List must
contain the following basic information:
- the name of your business;
- the caption: "Outer Burial Container Price
List;"
- the effective date of the price list;
- the retail price of each outer burial
container you offer that does not require
special ordering, with enough information to
identify the container; and
- the following disclosure (discussed earlier
on pages 8-9):
In most areas of the
country, state, or local law does not require
that you buy a container to surround the casket
in the grave. However, many cemeteries require
that you have such a container so that the grave
will not sink in. Either a grave liner or a
burial vault will satisfy these
requirements.
You do not have to include
the phrase "in most areas of the country" in the
disclosure if your state or local law does not
require a container to surround the casket in
the grave.
You must give enough
descriptive information about each outer burial
container in your OBC Price List to enable
consumers to identify the specific container.
You need list only those containers that you
usually offer for sale and that do not require
special ordering. "Special ordering" means
purchasing an outer burial container that is not
in stock and not part of your regular offerings
to your customers. However, the Rule does not
require you to offer any particular outer burial
containers; in fact, it does not require you to
sell any outer burial containers.
The Rule does not require
listing the containers that you offer in any
particular order. The OBC Price List can be in
any form, including in a notebook or on a chart,
as long as it contains the required information,
including the heading "Outer Burial Container
Price List," displayed in a clear and
conspicuous manner.
You do not have to list
containers that you keep in your inventory to
fill pre-existing pre-need contracts, but which
you no longer regularly offer for sale. Nor is
it necessary to prepare a new price list if a
container is temporarily out-of-stock. You can
simply tell the consumer which container is not
available when you give the consumer the OBC
Price List. (See also Sample 3 OBC Price List at
the end of this publication.)
Using the OBC Price
List
You must show this price list
to all persons asking about outer burial
containers or their prices. You must offer this
price list when you begin to discuss
outer burial containers, but before showing the
containers. Consumers must be able
to look at the price list before discussing
their options or seeing the actual containers.
(The Rule does not require that you display
outer burial containers in any specific manner.
Note, however, that many states have regulations
regarding the manner of display.)
Again, it is not enough for
you to tell consumers about price information or
to place price cards on top of individual
containers or models of containers. You can use
individual price cards, but only in addition to
an OBC Price List. Unlike the GPL, you do not
have to give the OBC Price List for retention.
However, you may do so if you wish.
Some funeral providers present
their outer burial container selections through
a book containing photographs of the various
containers offered for sale. If you choose this
approach, you must incorporate all the
information required for the OBC Price List (see
page 17) into the book.
In addition to using an OBC
Price List as described above, you must show
this price list to anyone who wishes to modify
the particular container already purchased under
a pre-need contract.
Statement of Funeral Goods and
Services Selected: Cost Information and
Disclosures
The Statement of Funeral Goods
and Services Selected (Statement) is an itemized
list of the goods and services that the consumer
has selected during the arrangements
conference.(13) The Statement allows consumers
to evaluate their selections and to make any
desired changes.
The Rule does not require any
specific form, heading or caption on the
Statement. The information required on the
Statement, described below, can be included on a
contract or any other document that you give to
customers at the conclusion of the arrangements
discussion. The categories of goods and services
listed on the Statement (or other similar
document) should generally correspond to the
items listed on the GPL, so that customers can
easily compare the two documents.
You must give each consumer a
completed Statement at the end of the
arrangements discussion. If arrangements are
made in-person, you should give the Statement at
this time. Giving a consumer a copy of the
Statement at the funeral or mailing it to the
consumer at some later date does
not meet the requirements of
the Rule.
Note: The
Rule does not address the manner or timing of
payment. That is between you and the
customer.
If arrangements are made over
the telephone, you should give the consumer the
Statement at the earliest possible date.
Example: On
Wednesday evening, Mrs. Shelley calls you to
make funeral arrangements for her father and
tells you that she will come to the funeral home
on Thursday morning to finalize such
arrangements. When Mrs. Shelley arrives the next
morning, you should give her the required GPL
and confirm the arrangements made. Then, once
you finalize the arrangements, you should give
Mrs. Shelley the Statement.
If a consumer makes all
funeral arrangements by telephone, you should
make a reasonable attempt to give a completed
Statement to the consumer before a final
disposition of the remains occurs. If the
consumer does not visit the funeral home in
person before the final disposition, you should
still give or send a completed Statement to the
consumer as soon as possible.
The Rule requires you to
include cost information and specific
disclosures on the Statement.
Cost Information
You should list all of the
individual goods and services that the consumer
will purchase, together with the price for each
item. You cannot simply lump together goods and
services that are listed separately on the GPL.
Example: Your
Statement would violate the Rule if it listed
only three broad categories for "Services,"
"Facilities," and "Automotive
Equipment."
You may still offer funeral
packages, as long as they are offered in
addition to, not in place of, itemized
prices. If the consumer selects a package (after
you offer itemized prices), your Statement
should describe the package, listing
individually each of the goods and services
included in the package, and state the package
price.
You also must list each cash
advance item separately on the Statement,
together with the price for each item. Cash
advance items are items of service or
merchandise that:
- are described to a consumer as a "cash
advance," "accommodation," "cash disbursement,"
or by any similar term; or
- you obtain from a third party and pay for on
the consumer's behalf. (See also cash advance
disclosure on below.)
Cash advance items may include
such things as cemetery or crematory services,
pallbearers, public transportation, clergy
honoraria, flowers, musicians or singers,
nurses, obituary notices, gratuities, and death
certificates.
If you don't know the price of
a particular cash advance item, you should enter
a good faith estimate. However, you should give
a written statement of the actual charges before
the final bill is paid.
Finally, you must give the
consumer the total cost of the arrangements
selected (individual goods and services plus
cash advance items).
Disclosures
You
must place the following three disclosures on
your Statement. They should be set out,
word-for-word, exactly as the Rule
prescribes.
1. Legal Requirements
The first disclosure states
that you will charge consumers only for the
items they have selected and that you will
explain any legal, cemetery, or crematory
requirements in writing.(14)
Charges are only for those
items that you selected or that are required. If
we are required by law or by a cemetery or
crematory to use any items, we will explain the
reasons in writing below.
The form should leave enough
space for you to identify and explain in writing
any legal, cemetery, or crematory requirement
that compels the consumer to purchase a specific
funeral good or service. You should enter this
information on the Statement before it is given
to the customer.
2. Embalming
The second disclosure relates
to embalming and the need for prior
approval.(15)
If you selected a funeral that
may require embalming, such as a funeral with
viewing, you may have to pay for embalming. You
do not have to pay for embalming you did not
approve if you selected arrangements such as a
direct cremation or immediate burial. If we
charged for embalming, we will explain why
below.
The form should leave enough
space for you to explain the reason for
embalming. You should enter this information on
the Statement before giving it to the
customer.
3. Cash Advance Items
The third disclosure relates
to your charges for your services in buying cash
advance items. If you charge for purchasing a
cash advance item, or if you receive and retain
a rebate, commission, or trade or volume
discount for a cash advance item, you must make
the following disclosure:(16)
We charge you for our services
in obtaining: (specify cash advance
items).
You must place this disclosure
in immediate conjunction with (directly next to)
the list of itemized cash advance items on your
Statement and specify those cash advance items
to which the disclosure applies. You should not
put the disclosure on a separate page or
elsewhere on the Statement apart from the list
of itemized cash advance items. (See also Sample
4 Statement at the end of this
publication.)
Telephone Price
Disclosures
You must give consumers who
telephone your place of business and ask about
your prices or offerings accurate information
from your General Price List, Casket Price List,
and Outer Burial Container Price List. You also
must answer any other questions about your
offerings and prices with any readily available
information that reasonably answers the
question.(17)
Note: You
cannot require callers to give their names,
addresses, or phone numbers before you give them
the requested information. You can ask callers
to identify themselves, but you still must
answer their questions even if they refuse to do
so. You cannot require consumers to come to the
funeral home in person to get price
information.
You can use an answering
machine or answering service to record incoming
calls. However, you must respond to questions
from callers on an individual basis.
Example: Your
answering machine can have a message telling
consumers to call a specified number during
business hours for information about prices and
offerings. You need to provide the requested
information when consumers call during those
hours, or, you can have an answering machine or
answering service take consumers' names and
phone numbers so that you can return the calls
at your earliest convenience.
You may have an employee
answering your phones who can respond to easier
questions regarding your offerings and prices by
referring to the printed price lists, but who
refers more difficult questions to you. If you
are unavailable when the call comes in, the
employee can take a message so that you can
return the call later.
You do not have to give price
and other information after business hours if it
is not your normal practice to do so. You can
tell consumers who call during non-business
hours that you will provide the information
during regular business hours. However, if a
consumer calls after hours to inquire about an
at-need situation, and it is your practice to
make funeral arrangements during non-business
hours, you should provide price or other
information the consumer requests.
If you are in the middle of
one arrangements conference when another family
calls about your offerings, you can take a
message and return the call at a later
time.
Misrepresentations Prohibited
by the Rule
The Funeral Rule prohibits
specific misrepr esentations in six
areas.(18)
1. Embalming
You cannot tell consumers that
state or local law requires embalming if that is
not true. If state law does require embalming,
you may tell the family that embalming is
required due to the specific circumstances.
Example: Your
state law requires either refrigeration or
embalming after a certain period of time. If you
have refrigeration facilities available, you
must give the consumer the option of either
refrigeration or embalming.
You also must tell the
consumer in writing that embalming is not
required by law except in special circumstances,
if relevant. You do this by including on your
GPL the mandatory embalming disclosure discussed
earlier on page 7.
Note: You
must make this disclosure to all consumers, even
if embalming is necessary.
Unless state or local law
requires embalming, you may not tell consumers
that embalming is required for practical
purposes in the following situations:
- When the consumer wants a direct cremation;
- When the consumer wants an immediate burial;
or
- When refrigeration is available and the
consumer wants a closed-casket funeral with no
formal viewing or visitation.
Example: A
family wants to arrange a funeral with a formal
viewing. The funeral will take place three days
after death has occurred on a hot summer day.
Your state does not require embalming. You do
not have refrigeration facilities. In this
situation, you can tell the family that the
funeral home requires embalming as a practical
necessity to delay decomposition of the remains
and to preserve them for viewing. You may not
tell the family that the law req | 
