Federal Trade Commission §453.1

PART 453--FUNERAL INDUSTRY

PRACTICES

Sec,

45~.1 Definitions.

453.2 Price disclosures.

453.3 Misrepresentations.

453.4 Required purchase of funeral goods or

funeral services.

453.5 Services provided without prior approval.

453,6 Retention of documents.

453.7 Comprehension of disclosures.

453.8 Declaration of intent,

453.9 State exemptions.

AUTHORITY: 15 U.S,C. 57a(a); 15 U.S.O.

5 U.S.C. 552.

SOURCE; 59 FR 1511, Jan. 11, 1994, unless

otherwise noted.

§ 453.1 Definitions.

(a) 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.

(b) Cash advance i~em. A "cash advance item" is any item of service or

merchandise described to a purchaser

as a "cash advance," "accommodation," "cash disbursement," or similar

term. A cash advance item is also any

item obtained from a third party and

paid for by the funeral provider on the

purchaser’s behalf. Cash advance items

may include, but are not limit.ed to:

cemetery or crematory services; pallbearers; public transportation; clergy

honoraria; fiowers; musicians or singers; nurses; obituary notices; gratuities

and death certificates.

(c) CaskeL A "casket" is a rigid container which is designed for the encasement of human remains and which is

usually constructed of wood, metal, fiberglass, plastic, or like material, and

ornamented and lined with fabric.

(d) Commission. "Commission" refers

to the Federal Trade Commission.

(e) &rema~ion. "Cremation" is a heating process which incinerates human

remains.

(f) ~rema~ory. A "crematory" is any

person, partnership or corporation that

performs cremation and sells funeral

goods.

(g) Direc~ cremation. A "direct cremation" is a disposition of human remains by cremation, without formal

viewing, visitation, or ceremony with

the body present.

(h) Funeral goods. "Funeral~ goods"

are the goods which are sold or offered

for sale directly to the public for use in

connection with funeral services.

(i) Funeral provider. A "funeral provider" is any person, partnership or

corporation that sells or offers to sell

funeral goods and funeral services to

the public.

(j) Funeral services. "Funeral services" are any services which may be

used to:

(1) Care for and prepare deceased

human bodies for burial, cremation or

other final disposition; and

(2) arrange, supervise or conduct the

funeral ceremony or the final disposition of deceased human bodies.

(k) Immediate burial. An "immediate

burial" is a disposition of human remains by burial, without formal viewing, visitation, or ceremony with the

body present, except for a graveside

service.

(l) Memorial service. A "memorial

service" is a ceremony commemorating the deceased without the body

present.

(m) Funeral ceremony. A "funeral

ceremony" is a service commemorating the deceased with the body

present.

(n) Outer burial container. An "outer

burial container" is any container

which is designed for placement in the

grave around the casket including, but

not limited to, containers commonly

known as burial vaults, grave boxes,

and grave liners.

(o) Person. A "person" is any individual, partnership, corporation, association, government or governmental

subdivision or agency, or other entity.

(p) Services of funeral director and

s~aff. The "services of funeral director

and staff" are the basic services, not to

be included in prices of other categories in §453.2(b)(4), that are furnished by a funeral provider in arranging any funeral, such as conducting the

arrangements conference, planning the

507

Exhibit A
§ 453.2 16 CFR Ch. I (I-I-12 Edition)

funeral, obtaining necessary permits,

and placing obituary notices.

§ 453.2 Price disclosures.

(a) Unfair or deceptive acts or p~:actices.

In selling or offering to sell funeral

goods or funeral services to the public,

it is an unfair or deceptive act or practice for a funeral provider to fail to furnish accurate price information disclosing the cost to the purchaser for

each of the specific funeral goods and

funeral services used in connection

with the disposition of deceased human

bodies, including at least the price of

embalming, transportation of remains,

use of facilities, caskets, outer burial

containers, immediate burials, or direct cremations, to persons inquiring

about the purchase of funerals. Any funeral provider who complies with the

preventive requirements in paragraph

(b) of this section is not engaged in the

unfair or deceptive acts or practices

defined here.

(b) Preventive requirements. To prevent

these unfair or deceptive acts or practices, as well as the unfair or deceptive

acts or practices defined in §45S.4(b)(1),

funeral providers must:

(1) Telephone price disclosure. Tell persons who ask by telephone about the

funeral provider’s offerings or prices

any accurate information from the

price lists described in paragraphs

(b)(2) through (4) of this section and

any other readily available information that reasonably answers the question.

(2) Casket price list. (i) Give a printed

or typewritten price list to people who

inquire in person about the offerings or

prices of caskets or alternative containers. The funeral provider must

offer the list upon beginning discussion

of, but in any event before showing caskets. The list must contain at least the

retail prices of all caskets and alternative containers offered which do not

require special ordering, enough information to identify each, and the effective date for the price list. In lieu of a

written list, other formats, such as

notebooks, brochures, or charts may be

used if they contain the same information as would the printed or typewritten list, and display it in a clear

and conspicuous manner. Provided,

however, that funeral providers do not

have to make a casket price list available if the funeral providers place on

the general price list, specified in paragraph (b)(4) of this section, the information required by this paragraph.

(ii) Place on the list, however produced, the name of the funeral provider’s place of business and a caption

describing the list as a "casket price

list."

(3) Outer l~urial container price lis~. (i)

Give a printed or typewritten price list

to persons who inquire in person about

outer burial container offerings or

prices. The funeral provider must offer

the list upon beginning discussion of,

but in any event before showing the

containers. The list must contain at

least the retail prices of all outer burial coi~tainers offered which do not requir~ special ordering, enough information to identify each container, and the

effective date for the prices listed. In

lieu of a written list, the funeral provider may use other formats, such as

notebooks, brochures, or charts, if they

contain the same information as the

printed or typewritten list, and display

it in a clear and conspicuous manner.

Provided, however, that funeral providers do not have to make an outer

burial container price list available if

the funeral providers place on the general price list, specified in paragraph

(b)(4) of this section, the information

required by .this paragraph.

(ii) Place on the list, however produced, the name of the funeral provider’s place of business and a caption

describing the list as an "outer burial

container price list."

(4) General price list. (i)(A) Give a

printed or typewritten price list for retention to persons who inquire in person about the funeral goods, funeral

services or prices of funeral goods or

services offered by the funeral provider. The funeral provider must give

the list upon beginning discussion of

any of the following:

(1) The prices of funeral goods or funeral services;

(2) The overall type of funeral service

or disposition; or

(3) Specific funeral goods or funeral

services offered by the funeral provider.

(B) The requirement in paragraph

(b)(4)(i)(A) of this section applies

508
Federal Trade Commission § 453.2

whether the discussion takes place in

the funeral home or elsewhere. Provided, however, that when the deceased

is removed for transportation to the

neral home, an in-person ~quest at

that time for authorization to embalm,

required by §453.5(a)(2), does not, by

itself, trigger the requirement to offer

the general price list if the provider in

seeking prior embalming approval discloses that embalming is not required

by law except in certain special cases,

if any. Any other discussion during

that time about prices or the selection

of funeral goods or services triggers the

requirement under paragraph

(b)(4)(i)(A) of this section to give consumers a general price list.

(C) The list required in paragraph

(b)(4)(i)(A) of this section must contain

at least the following information:

(1) The name, address, and telephone

number of the funeral provider’s place

of business;

(2) A caption describing the list as a

"general price list"; and

(3) The effective date for the price

list;

(ii) Include on the price list, in any

order, the retail prices (expressed either as the fiat fee, or as the price per

hour, mile or other unit of computation) and the other information specified below for at least each of the following items, if offered for Sale:

(A) Forwarding of remains to another

funeral home, together with a list of

the services, provided for any quoted

price;

(B) Receiving remains from another

funeral home, together with a list of

the services provided for any quoted

price;

(C) The price range for the direct cremations offered by the funeral provider, together with:

(1) A separate price for a direct cremation where the purchaser provides

the container;

(2) Separate prices for each direct

cremation offered including an alternative container; and

(3) A description of the services and

container (where applicable), included

in each price;

(D) The price range for the immediate burials offered by the funeral provider, together with:

(1) A separate price for an immediate

burial where the purchaser provides

the casket;

(2) Separate prices for each immediate burial offered including a casket

or alternative container; and

(3) A description of the services and

container (where applicable) included

in that price;

. (E) Transfer of remains to funeral

home;

(F) Embalming;

(G) Other preparation of the body;

(H) Use of facilities and staff for

viewing;

(I) Use of facilities and staff for funeral ceremony;

(J) Use of facilities and staff for memorial service;

(K) Use of equipment and staff for

graveside service;

(L) Hearse; and

(M) Limousine.

(iii) Include on the price list, in any

order, the following information:

(A) Either of the following:

(1) The price range for the caskets offeted by the funeral provider, together

with the statement: "A complete price

list will be provided at the funeral

home."; or

(2) The prices of individual caskets,

disclosed in the manner specified by

paragraph (b)(2)(i) of this section; and

(B) Either of the following:

(1) The price range for the outer burial containers offered by the funeral

provider, together with the statement:

"A complete price list will be provided

at the funeral home."; or

(2) The prices of individual outer burial containers, disclosed in the manner

specified by paragraph (b)(3)(i) of this

section; and

(C) Either of the following:

(1) The price for the basic services of

funeral director and staff, together

with a list of the principal basic services provided for any quoted price and,

if the charge cannot be declined by the

purchaser, the statement: "This fee for

our basic services 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 the charge cannot be declined by the purchaser, the

quoted price shall include all charges

509
§ 453.3 16 CFR Ch. I (I-I-12 Edition)

for the recovery of unallocated funeral

provider overhead, and funeral providers may include in the required disclosure the phrase "and overhead"

after the word "services"; or

(2) The following statement: "Please

note that a fee of (specify dollar amount)

for the use of our basic services 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)." The fee shall include

all charges for the recovery of

unallocated funeral provider overhead,

and funeral providers may include in

the required disclosure the phrase "and

overhead" after the word "services."

The statement must be p]aced on the

general price list together with the

casket price range, required by paragraph (b)(4)(iii)(A)(1) of this section, or

together with the prices of individual

caskets, required by (b)(4)(iii)(A)(2) of

this section.

(iv) The services fee permitted by

§ 453.2(b)(4)(iii)(C)(1) or (C)(2)is the only

funeral provider fee for services, facilities or unallocated overhead permitted

by this part to be n0n-declinable, unless otherwise required by law.

(5) Statement of funeral goods and serf~-

ices selected. (i) Give an itemized written statement for retention to each

person who arranges a funeral or other

disposition of human remains, at the

conclusion of the discussion of arrangements. The statement must list at

least the following information:

(A) The funeral goods and funeral

services selected by that person and

the prices to be paid for each of them;

(B) Specifically itemized cash advance items. (These prices must be

given to the extent then known or reasonably ascertainable. If the prices are

not known or reasonably ascertainable,

a good faith estimate shall be given

and a written statement of the actual

charges shall be provided before the

final bill is paid.); and

(C) The total cost of the goods and

services selected.

(ii) The information required by this

paragraph (b)(5) may be included on

any contract, statement, or other document which the funeral provider

would otherwise provide at the conclusion of discussion of arrangements.

(6) Other pricing methods. Funeral providers may give persons any other

price information, in any other format,

in addition to that required by  ̄

§45S.2(b)(2), (3), and (4) so long as the

statement required by §453.2(b)(5) is

given when required by the rule.

§ 453.3 i~isrepresentations.

(a) Embalming provisions--(1) Deceptive

acts or practices. In selling or offering to

sell funeral goods or funeral services to

the public, it is a deceptive act or practice for a funeral provider to:

(i) Represent that state or local law

requires that a deceased person be embalmed when such is not the case;

(ii) Fail to disclose that embalming

is not required by law except in certain

special cases, if any.

(2) Preventive requirements. To prevent

these deceptive acts or practices, as

well as the unfair or deceptive acts or

practices defined in §§45S.4(b)(1) and

45S.5(2), funeral providers must:

(i) Not represent that a deceased person is required to be embalmed for:

(A) Direct cremation;

(B) Immediate burial; or

(C) A closed casket funeral without

viewing or visitation when refrigeration is available and when state or

local law does not require embalming;

and

(ii) Place the following disclosure on

the general price list, required by

§45S.2(b)(4), in immediate conjunction

with the price shown for embalming:

"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." The phrase "except

in certain special cases" need not be

included in this disclosure if state or

local law in the area(s) where the provider does business does not require

embalming under any circumstances.

(b) Casket for cremation provisions--(1)

Deceptive acts or practices. In selling or

offering to sell funeral goods or funeral

services to the public, it is a deceptive

act or practice for a funeral provider

to:

510
Federal Trade Commission §453.3

(i) Represent that state or local law

requires a casket for direct cremations;

(ii) Represent that a casket is required for direct cremations.

(2) Preventive requirements. To prevent

these deceptive acts or practices, as

well as the unfair or deceptive acts or

practices defined in §45S.4(a)(1), funeral

providers must place the following disclosure in immediate conjunction with

the price range shown for direct cremations: "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)." This disclosure only has to be placed on the general price list if the funeral provider

arranges direct cremations.

(c) Outer burial container provisions-

(l) Deceptive acts or practices. In selling

or offering to sell funeral goods and funeral services to the public, it is a deceptive act or practice for a funeral

provider to:

(i) Represent that state or local laws

or regulations, or particular cemeteries, require outer burial containers

when such is not the case;

(ii) Fail to disclose to persons arranging funerals that state law does not

quire the purchase of an outer burial

container.

(2) Preventive requirement. To prevent

these .deceptive acts or practices, funeral providers must place the following disclosure on the outer burial

container price list, required by

§452.2(b)(2)(i), or, if the prices of outer

btu’ial containers are listed on the general price list, required by §45S.2(b)(4),

in immediate conjunction with those

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."

The phrase "in most areas of the country" need not be included in this disclosure if state or local law in the

area(s) where the provider does business does not require a container to

surround the casket in the grave.

(d) General provisions on legal and cemetery requirements--(1) Deceptive acts or

practices, In selling or offering to sell

funeral goods or funeral services to the

public, it is a deceptive act or practice

for funeral providers to represent that

federal, state, or local laws, or particular cemeteries or crematories,

quire the purchase of any funeral goods

or funeral services when such is not the

eas6.

(2) Preventive requirements. To prevent

these deceptive acts or practices, as

well as the deceptive acts or practices

identified in §§453.3(a)(1), 453.3(b)(1),

and 453.3(c)(1), funeral providers must

identify and briefiy describe in writing

on the statement of funeral goods and

services selected (required by

§ 453.2(b)(5)) any legal, cemetery, or crematory requirement which the funeral

provider represents to persons as compelling the purchase of funeral goods or

funeral services for the funeral which

that person is arranging.

(e) Provisions on preservative and protective value claims. In selling or offering to sell funeral goods or funeral

services to the public, it is a deceptive

act or practice for a funeral provider

to:

(1) Represent that funeral goods or

funeral services will delay the natural

decomposition of human remains for a

long-term or indefinite time;

(2) Represent that funeral goods have

protective features or will protect the

body from gravesite substances, when

such is not the case.

(f) Cash advance provisions--(1) Deceptive acts or practices. In selling or offering to sell funeral goods or funeral

services to the public, it is a deceptive

act or practice for a funeral provider

to:

(i) Represent that the price charged

for a cash advance item is the same as

the cost to the funeral provider for the

item when such is not the case;

(ii) Fail to disclose to persons arranging funerals that the price being

charged for a cash advance item is not

the same as the cost to the funeral provider for the item when such is the

case.

511
§ 453.4 16 CFR Ch. I (I-I-12 Edition)

(2) Preventive requirements. To prevent

these deceptive acts or practices, funeral providers must place the following sentence in the itemized statement of funeral goods and services

lected, in immediate conjunction with

the list of itemized cash advance items

required by §453.2(b)(5)(i)(B): "We

charge you for our services in obtaining: (specify cash advance items)," if

the funeral provider makes a charge

upon, or receives and retains a rebate,

commission or trade or volume discount upon a cash advance item.

§453.4 Required purchase of funeral

goods or funeral services.

(a) Casket ]’or cremation provisions--(1)

Unfair or deceptive acts or practices. In

selling or offering to sell funeral goods

or funeral services to the public, it is

an unfair or deceptive act or practice

for a funeral provider, or a crematory,

to require that a casket be purchased

for direct cremation.

(2) Preventive requirement. To prevent

this unfair or deceptive act or practice,

funeral providers must make an alternative container available for direct

cremations, if they arrange direct cremations.

(b) Other required purchases of funeral

goods or funeral services--(1) Unfair or

deceptive acts or practices. In selling or

offering to sell funeral goods or funeral

services, it is an unfair or deceptive act

or practice for a funeral provider to:

(i) Condition the furnishing of any funeral good or funeral service to a person arranging a funeral upon the purchase of any other funeral good or funeral service, except as required by law

or as otherwise permitted by this part;

(ii) Charge any fee as a condition to

furnishing any funeral goods or funeral

services to a person arranging a funeral, other than the fees for: (1) Serv-

.ices of funeral director and staff, permitted by §453.2(b)(4)(iii)(C); (2) other

funeral services and funeral goods selected by the purchaser; and (3) other

funeral goods or services required to be

purchased, as explained on the itemized

statement in accordance with

§ 453.3(d)(2).

(2) Preventive requirements. (i) To prevent these unfair or deceptive acts or

practices, funeral providers must:

(A) Place the following disclosure in

the general price list, immediately

above the prices required by §45S.2(b)(4)

(ii) and (iii): "The goods and services

shown below are those we can provide

to our customers. You may choose only

the items you desire. 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." Provided, however, that if the

charge for "services of funeral director

and staff" cannot be declined by the

purchaser, the statement shall include

the sentence: "However, any funeral

arrangements you select will include a

charge for our basic services" between

the second and third sentences of the

statement specified above herein. The

statement may include the phrase "and

overhead" after the word "services" if

the fee includes a charge for the recovery of unallocated funeral provider

overhead;

(B) Place the following disclosure in

the statement of funeral goods and

services selected, required by

§453.2(b)(5)(i): "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."

(ii) A funeral provider shall not violate this section by failing to comply

with a request for a combination of

goods or services which would be impossible, impractical, or excessively

burdensome to provide.

§ 453.5 Services provided without

prior approval.

(a) Unfair or deceptive acts or practices.

In selling or offering to sell funeral

goods or funeral services to the public,

it is an unfair or deceptive act or practice for any provider to embalm a deceased human body for a fee unless:

(1) State or local law or regulation

requires embalming in the particular

circumstances regardless of any funeral choice which the family might

make; or

(2) Prior approval for embalming (expressly so described) has been obtained

from a family member or other authorized person; or

512
Federal Trade Commission Pt. 455

(3) The funeral provider is unable to

contact a family member or other authorized person after exercising due

diligence, has no reason to believe the

family does not want embalming performed, and obtains subsequent approval for embalming already performed (expressly so described). In

seeking approval, the funeral provider

must disclose that a fee will be charged

if the family selects a funeral which requires embalming, such as a funeral

with viewing, and that no fee will be

charged if the family selects a service

which does not require embalming,

such as direct cremation or immediate

burial.

(b) Preventive requirement, To prevent

these unfair or deceptive acts or practices, funeral providers must include

on the itemized statement of funeral

goods and services selected, required by

§453.2(b)(5), the statement: "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."

§ 453.6 Retention of documents.

To prevent the unfair or deceptive

acts or practices specified in §§453.2

and 453.3 of this rule, funeral providers

must retain and make available for inspection by Commission officials true

and accurate copies of the price lists

specified in §§ 453.2(b) (2) through (4), as

applicable, for at least one year after

the date of their last distribution to

customers, and a copy of each statement of funeral goods and services selected, as required by §453.2(b)(5), for at

least one year from the date of the arrangements conference.

§ 453.7 Comprehension of disclosures.

To prevent the unfair or deceptive

acts or practices specified in §§453.2

through 453.5, funeral providers must

make a11 disclosures required by those

sections in a clear and conspicuous

manner. Providers shall not include in

the casket, outer burial container, and

general price lists, required by

§§ 45S.2(b)(2)-(4), any statement or infermarion that alters or contradicts the

information required by this part to be

included in those lists.

§ 453.8 Declaration of intent.

(a) Except as otherwise provided in

§453.2(a), it is a violation of this rule to

engage in any unfair or deceptive acts

or practices specified in this rule, or to

fail to comply with any of the preventive requirements specified in this rule;

(b) The provisions of this rule are

separate and severable from one

other. If any provision is determined to

be invalid, it is the Commission’s intention that the remaining provisions

shall continue in effect.

(c) This rule shall not apply to the

business of insurance or to acts in the

conduct thereof.

§ 453.9 State exemptions.

If, upon application to the Commission by an appropriate state agency,

the Commission determines that:

(a) There is a state requirement in effect which applies to any transaction

to which this rule applies; and

(b) That state requirement affords an

 ̄ overall level of protection to consumers which is as great as, or greater

than, the protection afforded by this

rule; then the Commission’s rule will

not be in effect in that state to the extent specified by the Commission in its

determination, for as long as the State

administers and enforces effectively

the state requirement.

PART 455--USED MOTOR VEHICLE

TRADE REGULATION RULE

Sec.

455.1 General duties of a used vehicle dealer;

definitions.

455.2 Consumer sales--window form.

455.3 Window form.

455.4 Contrary statements.

455.5 Spanish language sales.

455.6 State exemptions.

455.7 Severability.

AUTHORITY: 88 Star. 2189, 15 U.S.C. 2S09; 38

Star. 717, as amended 15 U.S.C. 41 et seq.

SOURCE: 49 FR 45725, Nov. 19, 1984, unless

otherwise noted.

513