FSL Chapter 16R3 - FTC General Price Lists

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FUNERAL SERVICE LAW

IN THE UNITED STATES, 2nd ed.

A GUIDE FOR FUNERAL SERVICE STUDENTS

CHAPTER 16: FTC FUNERAL RULE - GENERAL PRICE LISTS

General Price List (GPL)

� The Funeral Rule requires up to three different price lists to inform

consumers of the goods and services they offer.

� The most significant of these is the General Price List, described by the FTC as ‘the keystone of the Funeral Rule.’

� A funeral director must provide a GPL to a consumer upon beginning

discussion of any of the following:

� the prices of funeral goods or funeral services;

� the overall type of funeral service or disposition; or

� specific funeral goods or funeral services offered by the funeral provider.

� These are triggering events – face-to-face meetings – that require the

consumer be given a GPL for review and retention (to keep).

Requirement to Provide a GPL

� The requirement to provide a GPL applies regardless of the location where the discussion takes place, but there is one exception.

� The exception is when a decedent is being transferred from the place of death and a funeral director is requesting authorization to embalm.

� For this purpose and time only, a GPL does not need to be given to a consumer; however …… the director must disclose embalming is not required by law and refrain from any further discussion that would trigger the need to provide a GPL.

� If any other triggering event discussion takes place, a GPL must be given to the consumer for retention.

🟍

Providing a GPL

� In-person - A GPL must be given to anyone who asks, in person, about funeral goods, funeral services, or the prices of goods and services.

� Competitors, the news media, clergy, government officials, and consumer advocacy groups are just a few of the entities that may request a GPL and must then be given a copy. There are no exceptions.

� By phone- Certain information must be provided to those who call and inquire about the price of funeral goods and services, but the Rule does not require establishments to mail or provide callers with a GPL based on a telephone call.

� There is also nothing in the Rule to prohibit establishment from mailing a GPL to someone if they choose to do so.

Providing a GPL continued

� By mail- The Rule does not require mailing a GPL on request, but some

states may have such a requirement.

� For retention- A GPL cannot be shown in a booklet or binder where it

appears there is only one copy available.

� An individual hard copy must be physically offered to consumers so they can take it home with them when they leave.

🟍

Providing a GPL continued

� A consumer does not have to accept a GPL, and a funeral director is not required to do anything beyond offering and making one available.

� A funeral director may not do or say anything to discourage a consumer from accepting, reviewing, or keeping a GPL.

� No fees or conditions may be set for a consumer to receive a GPL, as they must be provided free of charge.

🟍

Match

Choose the scenario in which the funeral professional is required by the FTC to provide a copy of the the GPL to the customer for retention:

A person walks into the funeral home, unannounced, while there is not a Funeral Director present, and they ask about pricing for a direct cremation

One of your competitors comes into the funeral home and asks for pricing on receiving of remains.

A person calls funeral home inquiring about pricing for a direct cremation

A decedent is being transferred from the place of death and a funeral director is requesting authorization to embalm.

Provide a copy of the the GPL to the customer for retention

provide a copy of the the GPL to the customer for retention

You do not need to provide a copy of the the GPL to the customer for retention.

You do not need to provide a copy of the the GPL to the customer for retention

The GPL Heading

� The Rule requires a GPL must contain at least these three pieces of

information in the heading:

The name, address, and telephone number of the funeral provider’s
place of business.

A caption describing the list as a ‘General Price List’.

The effective date of the list.

� The effective date is the date on which the GPL is first made available to be given or offered to persons requesting funeral service information.

🟍

Itemized Prices

� Following the heading, a GPL must itemize 16 specific items of goods and services, together with the price for each item.

� Itemization – the pricing method on a GPL – is a listing of goods and services that treats each individual good or service as a separate line item that includes the price for the item.

� A funeral establishment must list each of the 16 FTC specified items on their general price list, however …… they do not need to list an item if they do not offer the item to consumers.

🟍

Itemized Prices continued

� An establishment may list items (goods and services) they offer that are not

included in the 16 FTC mandatory items, such as prayer cards or a flag case.

� Many states require all items offered by an establishment must be listed on

the GPL, regardless of whether or not they are included in the 16 specified by
the FTC.

� The best practice in the industry is to include all goods and services regularly

offered by a funeral establishment on the GPL.

🟍

Disclosures

� In addition to the 16 specific items, there are six disclosures required in the Rule that must be included with the itemized listings.

� These disclosures must use the identical wording provided in the Rule and be located in specific locations on the GPL.

� Additional information, such as state laws or regulations relevant to an item, may be added.

� An establishment may not change the FTC language or add anything that would modify the FTC language.

🟍

Packages

� An establishment may offer package pricing, but these packages must be inaddition to, not in place of, the required itemized prices. For example, an establishment can offer a memorial package that includes prayer cards, acknowledgement cards, and a register book; but they must then also list and offer each of these three same items individually.

� There is nothing in the Rule to prohibit the package price being lower than the cost of the three items if purchased individually.

� Some states prohibit package pricing or limit this method to specific uses, such as government contracts.

🟍

Discounts

� The Funeral Rule allows a discount in pricing for special circumstances, such as arrangements for a friend or relative, or a family that otherwise could not afford the services; however …… funeral establishments may not inflate the prices in order to offer all or most of their customers a discount.

� If that were the case, the discounted prices would then be the accurate prices and should therefore be reflected on the price list.

🟍

Order of the List Items

� The rule does not require the 16 items be listed in any particular order; however …… some states mandate a specified order to make it easier for consumers to comparison shop for the items they want for a funeral.

� In states that mandate a specific order, prices may be quickly compared item-by-item by reviewing them in the same order on two or more GPL’s from the same state.

🟍

Right of Selection Disclosure

�

The first of the six required disclosures – right of selection – is placed
immediately following the heading and right before the list of 16 goods and services. The disclosure reads 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.

� The third sentence (in bold), must be included if consumers cannot decline a basic services fee. An establishment may add ‘and overhead’ (shown here) if the fee also includes the recovery of overhead costs.

Item #1 Basic Services of Funeral Director,

Staff, and Overhead

� Following the heading, the 16 items must be listed.

� Item #1 is for Basic Services and includes services of the funeral director and staff that are common to virtually all forms of disposition or arrangements a funeral establishment may offer, including such services as:

� There are two options for listing Item #1 on a GPL.

Conducting the arrangement conference

Securing necessary permits

Preparing obituaries and notices

Sheltering of remains

Coordinating arrangements with the cemetery, crematory, or other third parties

Basic Services Fee - Option #1

� In option one, the Basic Services fee is non-declinable, in which case the

disclosure would read as follows:

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.)

� The mandatory disclosure:

Must appear together with the price and a description of the services it includes.

� The basic services fee must include all charges for the recovery of overhead charges not allocated elsewhere on the GPL.

May not be placed on a separate page or anywhere else on the GPL apart from the price for Basic Services.

Basic Service Fee - Option 1 continued

� The Funeral Rule requires the Basic Services fee be included in the price for these four items (often referred to as minimal services):

Direct cremations.

Immediate burials.

Forwarding of remains.

Receiving remains.

� A consumer choosing one of these four items is not prohibited from selecting other goods and services; however …… the Basic Services Fee may not be charged for any other items purchased when they are in addition to one of the four minimal services.

Basic Services Fee - Option 2

� In option two, the funeral establishment may include the basic services fee in the casket prices, in which case, the disclosure would read as follows.

Please note that a fee of $______ for the use of our basic services and overhead is includedin 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) __________.

� The price must include all charges for the recovery of overhead charges not allocated elsewhere on the GPL.

� The disclosure for Option 2 must appear:

� On the GPL, if all the casket prices are listed on the GPL.

� On the casket price list, if only a range of the casket prices is listed on the GPL.

� Very few establishments use option 2 to charge a basic services fee.

Overhead

� Overhead is a cost or expense of owning and operating a business.

� In funeral service businesses, overhead could include such items as

operating and maintaining the facilities to provide for a preparation room,
chapel, and arrangement conference room.

� Overhead may also include such things as insurance, staff salaries,

government taxes, and business license fees.

🟍

Overhead continued

� There are three allowable approaches to charging for overhead expenses on a GPL:

They may all be included in the Basic Services fee (most common).

They may be spread out across all the prices for all the other goods and services itemized on the GPL.

The establishment may combine the first two approaches by spreading some portion of overhead expenses across the individual items, and the remainder in the Basic Services fee.

🟍

Item #2 Forwarding Remains to …
Item #3 Receiving Remains from …

Another Funeral Home

� Funeral Rule requirements for these two items on a GPL are the same.

� Both items must list one price and describe all services to be provided for the one price.

� Both items must include all charges, including the Basic Services fee and any facility or equipment fees. A separate Basic Services fee may not be charged.

� Additional goods and services may be purchased, but the Basic Serves fee may not be charged for the additional items.

Item #4 Direct Cremation

� Direct cremation is the disposition of human remains by cremation without formal viewing, visitation, or ceremony with the body present.

� The listing must provide a range of the prices for direct cremations, and a mandatory disclosure must be placed in immediate conjunction with (directly next to) the price range.

� The required disclosure reads 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) ___________.

� An establishment must specify and describe the container(s) they offer.

Direct Cremation continued

� There are two options for listing Direct Cremation on a GPL.

A price for direct cremation if the consumer provides the casket or container.

A price for each selection the establishment offers with an alternative container.

� An alternative container is an 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 (with or without an outside covering) or like materials.

� Establishments must offer at least one alternative container if they want to offer direct cremation. They may (and usually do) offer more than one container.

Direct Cremation continued

� A GPL must describe the services an establishment offers with a direct cremation, such as a memorial service or a scattering ceremony.

� If the crematory fee is included in the direct cremation price, the words ‘and cremation’ must be included in the GPL description for this item.

� If an establishment uses a third-party crematory, they may treat the charge as a cash advance item.

In these cases, the words ‘and cremation’ would not be included, but the
consumer must be advised the crematory charge will be estimated or
itemized separately on the Statement of Funeral Goods and Services
Selected.

🟍

Item #5 Immediate Burial

� Immediate burial (direct burial) is the disposition of human remains by burial, without formal viewing, visitation, or ceremony with the body present, except for a graveside service.

� Similar to direct cremation, this listing must provide a range of the prices.

� The listing must include two options:

A price for immediate burial where the consumer provides the casket.

A price for each selection the establishment offers that provides a casket or alternative container.

� Unlike direct cremation, as establishment is not required to make an alternative container available for an immediate burial.

Immediate Burial continued

� The listing must describe the services and the container provided for each option.

� If this item is available with any casket the establishment offers:

� the GPL can list the price for the service only (no container); and

� refer the consumer to the casket price list for the casket selections and prices.

🟍

Item #6 Transfer of Remains to Funeral Establishment

� The pricing method for the transfer of remains may be a flat fee, an hourly rate, a mileage charge, or any combination of these.

� Common practice is to use a flat fee method up to a specified number of

miles and then the mileage charge method for additional miles outside the radius of the flat fee.

� The price must include cost of personnel, equipment, and a vehicle.

� This item is for transfers from the place of death or other location where

released by legal authority. It does not apply to transportation beyond the initial transfer, such as to or from:

A hospital for an autopsy

A cemetery

An airport or rail stations

A church for a funeral service

A crematory

Out-of-state

Item #7 Embalming

� The price for embalming must include the use of the preparation room, professional services, equipment, and materials in performing an embalming.

� It does not include other related services, such as cosmetic or restoration work, which would be listed in the item titled: Other reparation of the Body.

� There is a mandatory disclosure for this item that must be placed in immediate conjunction (directly next to) the price for embalming.

� The disclosure may not be placed on a separate page or anywhere else on the GPL apart from the price for embalming.

🟍

The Embalming Disclosure

� The embalming disclosure must read as follows:

[Except in certain special cases,] [E]mbalming 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, such as direct cremation or immediate burial, that does not require you to pay for it.

� This disclosure informs consumers the law does not usually require embalming.

🟍

Embalming Disclosure continued

� This is the first sentence of the mandatory embalming disclosure:

[Except in certain special cases,] [E]mbalming is not required by law.

If a state does not require embalming under any circumstance,

the Rule provides the sentence should read:

Embalming is not required by law.

If a state does requires embalming in certain cases or special circumstances,

the Rule provides the sentence should read:

Except in certain special cases, embalming is not required by law.

🟍

Item #8 Other Preparation of the Body

� This item most often includes services – other than embalming – that take place in a morgue or preparation room, including:

� Dressing and casketing.

� Topical disinfection (when there is no embalming).

� Cosmetic applications.

� Restoration work.

🟍

Item #9 Use of Facilities & Staff for Viewing

� An establishment may charge a flat fee or an hourly fee for the use of facilities for a viewing.

� The price must include charges for both the services of staff and the facilities used in connection with a viewing.

� If an establishment provides staff services for a viewing held at another facility – such as a church or home – they may list a separate fee for the staff services, as a facilities charge would not be appropriate because the funeral establishment facilities are not being used.

🟍

Facilities and Staff for a …

Item #10 Funeral Ceremony
Item #11 Memorial Service

� Funeral Rule requirements for these two items on a GPL are the same.

� These items must include charges for both services of the staff and the use of the funeral establishment facilities.

� Staff charges and facility charges may not be listed as two different charges. Exception: Staff services provided at any facility other than a funeral establishment may be listed as a separate fee.

🟍

Item #12 Use of Facilities and Staff

for a Graveside Service

� The FTC has noted this item for a graveside service is intended for those situations where there is no funeral ceremony at the funeral establishment or elsewhere.

� The charge should include both staff services and any equipment, such as a tent and folding chairs, needed for a graveside service.

� Equipment charges and staff charges may not be listed as two separate charges.

� An establishment may include a committal service at the grave in the charge for a funeral ceremony, or have a separate charge for a graveside service.

Item #13 Hearse andItem #14 Limousine

� Funeral Rule requirements for these two items on a GPL are the same .

� The pricing method for the use of a hearse or a limousine may be a flat fee, an hourly rate, a mileage charge, or any combination of these.

� Common practice is to use a flat fee method up to a specified number of miles and then the mileage charge method for additional miles outside the radius of the flat fee.

� The price must include cost of personnel, equipment, and a vehicle.

🟍

Item #15 Casket Prices

� There are two options for listing casket prices on a GPL:

List the range of pricesfor the caskets on the GPL and then have a
separate casket price list.

List all of the caskets and their prices directly on the GPL and not have a separate casket price list.

� When using option one, the Funeral Rule requires the following disclosure: A complete price list will be provided at the funeral establishment.

� When using option two, there is no required disclosure.

🟍

Item #16 Outer Burial Containers

There are two options for listing outer burial container prices on a GPL:

List the range of prices for containers on the GPL and have a separate
outer burial container price list.

List all of the containers and their prices on the GPL and not have a
separate outer burial container price list.

🟍

Disclosures for Option 1 - Range of Prices

� When using optionone, the Rule requires this disclosure on the GPL:

A complete price list will be provided at the funeral establishment.

~ AND ~

� This disclosure on the separate price list:

[In most areas of the country], [S]tate 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.

🟍

Disclosures for Option 2 - Prices on the GPL

� When using optiontwo, the Rule requires this disclosure on the GPL only:

🟍

Understanding the Disclosure

� This is the first sentence of the disclosure required on either a separate price list (w/the price range on the GPL), or on the GPL (w/all the prices on GPL):

[In most areas of the country], [S]tate or local law does not require that you buy a container to surround the casket in the grave.

If a state does requires outer burial containers, the sentence should read:

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.

If a state does not require outer burial containers, the sentence should read:

State or local law does not require that you buy a container to surround the casket in the grave.

Multiple Choice

Quiz Time!!!

Which of the following is not required in the heading of the General Price List?

The name, address, and telephone number of the funeral provider’s place of business.

A caption describing the list as a ‘General Price List’.

The effective date of the list.

The funeral Home's Logo

Multiple Choice

Following the GPL Heading , there should be how many itemized, priced, service offerings?

Multiple Choice

The FTC requires this many specific disclosures to be included on the GPL:

Multiple Choice

Disclosures must use the identical wording provided in the FTC Funeral Rule and be located in specific locations on the GPL

True

False

THE END

Author: Larry J Cleveland

Publisher: Hudson Valley Professional Services

PPT Release: #3 June 2022
🟍

FUNERAL SERVICE LAW

IN THE UNITED STATES, 2nd ed.

A GUIDE FOR FUNERAL SERVICE STUDENTS

FUNERAL SERVICE LAW

IN THE UNITED STATES, 2nd ed.

A GUIDE FOR FUNERAL SERVICE STUDENTS

CHAPTER 16: FTC FUNERAL RULE - GENERAL PRICE LISTS

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