Funeral Industry Practices Rule Requirements: Pricing...

Funeral Industry Practices Rule Requirements: Pricing Disclosure The Federal Trade Commission was established in 1914 by President Woodrow Wilson. This commission is a government agency that examines and inspects businesses for unethical treatment and practices. More specifically, Section 5 of the Federal Trade Commission Act in which “…prohibits unfair methods of competition and unfair or deceptive acts or practices in or affecting commerce” and makes it unjust for businesses to not inform customers to make higher revenue (Cheeseman, 2011). On April 30, 1984, the Funeral Industry Practices Rule of the Federal Trade Commission was put into effect (Kopp & Kemp, 2007). The “Funeral Rule” is a law that protects customers and mandates that the funeral director gives accurate information on funeral services (Kopp & Kemp, 2007). This information includes a general price list of all possible funeral costs. These costs range from the price of an embalming to different casket prices. Whether a family is interested in using that specific funeral home or just shopping around, the funeral director must give the family the price disclosure forms to anyone that walks in no matter if it is requested or not. The Federal Trade Commission created the Funeral Industry Practices Rule for “…consumers to make careful, informed purchase decisions in at-need situations because of emotional stress, time pressure, and lack of familiarity with available goods and services” (Kopp & Kemp, 2007). The Federal Trade Commission enforces the Funeral Rule so strongly because of the customers are emotionally unstable and the process of planning a loved one’s funeral can be very difficult. For majority of the population, funerals are the third largest purchase one will make in their lifetime after houses and automobiles which is why it is important funeral homes follow the Funeral Industry Practices Rule (Kopp & Kemp, 2007). With the growth of the funeral industry in the late nineteenth century, but the lack of income for the average household, funerals were extremely expensive. Funeral directors would discourage families from immediately burying their loved ones and persuade the family into embalming and many hours of visiting (Kopp & Kemp, 2007). Families would agree to the funeral director’s suggestions and face a costly bill at the end of funeral arrangements. This led to a United States Senate hearing in 1964 due to many families complaining that they felt as though funeral homes were taking advantage of their emotional distress (Kopp & Kemp, 2007). There were so many complaints that this issue reached to levels of federal regulatory consideration, which later put the Funeral Industry Practices Rule in 1984 into full effect (Kopp & Kemp, 2007). Pricing disclosure is the most important regulation in the Funeral Rule. The general price list lays out every cost and informs the family of any possible extra charges or added funeral services (i.e. - cosmetology, religious icons, funeral home’s transportation costs). There are three different price lists that must be given to the family of the deceased whether it be in person or via over the telephone. The general price list contains the costs of different funeral options (i.e. – hourly funeral service rate, remains removal charge, cemetery/cremation costs). The casket price list is a listing of all available caskets the funeral home offers. Even if a family knows their loved one will be cremation, in which a casket is not needed, the Funeral Industry Practices Rule requires the funeral director to still provide the casket price list to the family. The last price list given is the outer burial container price list. This price list does not always pertain to all families. If the deceased is being buried at a cemetery, the funeral director must check with the cemetery to see if a cement vault is needed. A cement vault protects the casket and body from decomposing quickly and from toxins seeping into the

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Funeral Industry Practices Rule Requirements: Pricing Disclosure

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