UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF ILLINOIS 

________________ ___________ 

 ) 

UNITED STATES OF AMERICA, ) 

 Plaintiff, ) 

 ) 

 v. ) Civil Action No. 1:11-cv-04801 

 ) 

 ) 

HARRY J. CARTER III ) 

individually and doing business as ) 

 Carter Funeral Chapels, Ltd. ) 

 ) 

 Defendant. ) 

_____________________________________________ ) 

CONSENT DECREE

 WHEREAS, Plaintiff, the United States of America (“Plaintiff”), has commenced this 

action by filing the Complaint herein; Defendant Harry J. Carter III has waived service of the 

Summons and Complaint; the parties have been represented by the attorneys whose names 

appear hereafter; and the parties have agreed to settlement of this action upon the following 

terms and conditions, without adjudication of any issue of fact or law and without Defendant 

admitting or denying liability for any of the matters charged in the Complaint other than 

jurisdictional facts. 

ORDER

 THEREFORE, on the joint motion of the Plaintiff and Defendant, it is ORDERED, 

ADJUDGED, and DECREED as follows: 

FINDINGS

1. This Court has jurisdiction of the subject matter and of the parties. 

2. The Complaint states a claim upon which relief may be granted against the 

Defendant under Sections 5(a)(1), 5(m)(1)(A), 9, 13(b), and 16(a) of the Federal Trade 

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Commission Act, 15 U.S.C. §§ 45(a)(1), 45(m)(1)(A), 49, 53(b), and 56(a). 

3. Venue in this district is proper under 28 U.S.C. §§ 1391(b-c) and 1395(a) and 15 

U.S.C. § 53(b). 

4. The activities of Defendant are in or affecting commerce as “commerce” is 

defined in Section 4 of the FTC Act, 15 U.S.C. § 44. 

5. Entry of this Consent Decree is in the public interest. 

6. Defendant stipulates to the entry of this Consent Decree freely and without 

coercion. Defendant further acknowledges that he has read the provisions of this Consent 

Decree and is prepared to abide by them. 

7. All parties waive all rights to appeal or otherwise challenge or contest the validity 

of this Consent Decree. 

8. The parties shall each bear their own costs and attorneys’ fees incurred in this 

action. Defendant waives any claim he may have under the Equal Access to Justice Act, 28 

U.S.C. § 2412. 

I. INJUNCTION

IT IS THEREFORE ORDERED that Defendant and his officers, agents, servants, 

employees, and attorneys, and all other persons in active concert or participation with any of 

them who receive actual notice of this Consent Decree by personal service or otherwise, are 

permanently enjoined from violating, directly or through any corporation, subsidiary, division, or 

other device, any provision of the Commission’s Trade Regulation Rule Concerning Funeral 

Industry Practices (“Funeral Rule”), 16 C.F.R. Part 453, now in effect and as it may be 

hereinafter amended. A copy of the Funeral Rule is attached hereto as “Exhibit A” and 

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incorporated in this Consent Decree as if fully set forth verbatim. 

II. CIVIL PENALTY 

IT IS THEREFORE ORDERED that:

A. Judgment in the amount of $64,000 is hereby entered against Defendant as a civil 

penalty, pursuant to Section 5(m)(1)(A) of the Federal Trade Commission Act, 15 U.S.C. § 

45(m)(1)(A), provided, however, that payment of the foregoing civil penalty is suspended 

subject to the conditions set forth in Subsection B of this Section. 

B. Plaintiff’s and the Commission’s agreement to, and the Court’s approval of, this 

Order is expressly premised upon the truthfulness, accuracy, and completeness of Defendant’s 

representations regarding his financial condition, as set forth in his sworn Financial Statement of 

Individual Defendant dated January 10, 2012 (as amended February 14, 2012), his sworn 

Financial Statement of Corporate Defendant (i.e., the business identified in this document as 

Carter Funeral Chapels, Ltd.) dated January 10, 2012 (as amended February 14, 2012), 

supporting documents submitted to Plaintiff, and representations made by Defendant in his 

deposition dated May 25, 2012, which include material information upon which Plaintiff and the 

Commission relied in negotiating and agreeing to the terms of this Order. If, upon motion by 

Plaintiff or the Commission, this Court finds that Defendant’s financial statements, deposition 

testimony, and related documents failed to disclose any material asset or materially misstated the 

value of any asset, or made any other material misstatement or omission, the Court shall lift the 

suspension of the judgment and require immediate payment of the civil penalty in the full 

amount of the judgment ($64,000). Provided, however, that in all other respects this Order shall 

remain in full force and effect, unless otherwise ordered by the Court. Proceedings instituted 

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under this Paragraph are in addition to, and not in lieu of, any other civil or criminal remedies 

that may be provided by law, including any other proceedings Plaintiff or the Commission may 

initiate to enforce this Order. 

C. Defendant relinquishes all dominion, control, and title to the funds paid to the 

fullest extent permitted by law. Defendant shall make no claim to or demand for return of the 

funds, directly or indirectly, through counsel or otherwise. 

D. Defendant agrees that the facts as alleged in the Complaint filed in this action 

shall be taken as true, without further proof, in any subsequent civil litigation filed by or on 

behalf of Plaintiff or the Commission to enforce their rights to any payment or money judgment 

pursuant to this Order. 

E. Defendant agrees that the judgment represents a civil penalty owed to the United 

States Government, is not compensation for actual pecuniary loss, and, therefore, as to 

Defendant, it is not subject to discharge under the Bankruptcy Code pursuant to 11 U.S.C. 

§ 523(a)(7). 

 F. In accordance with 31 U.S.C. § 7701, as amended, Defendant is hereby required, 

unless he already has done so, to furnish to Plaintiff and the Commission his taxpayer identifying 

numbers (social security numbers or employer identification numbers), which shall be used for 

the purpose of collecting and reporting on any delinquent amount arising out of Defendant’s 

relationship with the government. 

III. COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for the purpose of monitoring and investigating 

compliance with any provision of this Consent Decree: 

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 A. Within ten (10) days of receipt of written notice from a representative of the 

Commission, Defendant shall submit additional written reports, which are true and accurate and 

sworn to under penalty of perjury; produce documents for inspection and copying; appear for 

deposition; and provide entry during normal business hours to any business location in 

Defendant’s possession or direct or indirect control to inspect the business operation; 

 B. In addition, the Commission is authorized to use all other lawful means, 

including, but not limited to: 

1. obtaining discovery from any person, without further leave of Court, using 

the procedures prescribed by Fed. R. Civ. P. 30, 31, 33, 34, 36, 45 and 69; 

 2. having its representatives pose as consumers and suppliers to Defendant, 

his employees, or any other entity managed or controlled in whole or in 

part by Defendant, without the necessity of identification or prior notice; 

and 

 C. Defendant shall permit representatives of the Commission to interview any 

employer, consultant, independent contractor, representative, agent, or employee who has agreed 

to such an interview, relating in any way to any conduct subject to this Consent Decree. The 

person interviewed may have counsel present. 

Provided, however, that nothing in this Consent Decree shall limit the Commission’s 

lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. 

§§ 49, 57b-1, to obtain any documentary material, tangible things, testimony, or information 

relevant to unfair or deceptive acts or practices in or affecting commerce (within the meaning of 

15 U.S.C. § 45(a)(1)). 

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IV. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that, in order that compliance with the provisions of this 

Consent Decree may be monitored: 

 A. For a period of five (5) years from the date of entry of this Consent Decree, 

 1. Defendant shall notify the Commission of the following: 

 a. Any changes in Defendant’s residence, mailing addresses, and 

telephone numbers, within ten (10) days of the date of such 

change; 

 b. Any changes in Defendant’s employment status (including selfemployment), and any change in Defendant’s ownership in any 

business entity, within ten (10) days of the date of such change. 

Such notice shall include the name and address of each business 

that Defendant is affiliated with, employed by, creates or forms, or 

performs services for; a detailed description of the nature of the 

business; and a detailed description of Defendant’s duties and 

responsibilities in connection with the business or employment; 

 c. Any changes in Defendant’s name or use of any aliases or 

fictitious names within ten (10) days of the date of such change; 

and 

 2. Defendant shall notify the Commission of any business entity that 

Defendant directly or indirectly controls, or has an ownership interest in, 

that may affect compliance obligations arising under this Consent Decree, 

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including, but not limited to: incorporation or other organization; a 

dissolution, assignment, sale, merger, or other action; the creation or 

dissolution of a subsidiary, parent, or affiliate that engages in any acts or 

practices subject to this Consent Decree; or a change in the business name 

or address, at least thirty (30) days prior to such change, provided that, 

with respect to any such change in the business entity about which 

Defendant learns less than thirty (30) days prior to the date such action is 

to take place, Defendant shall notify the Commission as soon as is 

practicable after obtaining such knowledge. 

 B. One hundred eighty (180) days after the date of entry of this Consent Decree and 

annually thereafter for a period of five (5) years, Defendant shall provide a written report to the 

Commission, which is true and accurate and sworn to under penalty of perjury, setting forth in 

detail the manner and form in which he has complied and is complying with this Consent 

Decree. This report shall include, but not be limited to: 

1. The Defendant’s then-current residence address, mailing addresses, and 

telephone numbers; 

2. The Defendant’s then-current employment status (including selfemployment), including the name, addresses and telephone numbers of 

each business that the Defendant is affiliated with, employed by, or 

performs services for; a detailed description of the nature of the business; 

and a detailed description of the Defendant’s duties and responsibilities in 

connection with the business or employment; 

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3. Any other changes required to be reported under Subparagraph A of this 

Section; and 

 4. A copy of each acknowledgment of receipt of this Consent Decree and the 

Funeral Rule, obtained pursuant to the Section titled “Distribution of 

Order and Funeral Rule.” 

 C. Defendant shall notify the Commission of the filing of a bankruptcy petition by 

Defendant within fifteen (15) days of filing. 

 D. For the purposes of this Consent Decree, Defendant shall, unless otherwise 

directed by the Commission’s authorized representatives, send by overnight courier (not the U.S. 

Postal Service) all reports and notifications to the Commission that are required by this Order to: 

Associate Director for Enforcement 

Bureau of Consumer Protection 

Federal Trade Commission 

600 Pennsylvania Avenue, N.W. 

Washington, D.C. 20580 

Re: United States v. Harry J. Carter III, Case No. 1:11-cv-04801 

 Provided that, in lieu of overnight courier, Defendant may send such reports or 

notifications by first-class mail, but only if Defendant contemporaneously sends an electronic 

version of such report or notification to the Commission at: DEBrief@ftc.gov.

 E. For purposes of the compliance reporting and monitoring required by this Consent 

Decree, the Commission is authorized to communicate directly with Defendant. 

V. RECORD KEEPING

IT IS FURTHER ORDERED that, for a period of eight (8) years from the date of entry 

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of this Consent Decree, Defendant, for any business in which he engages in conduct related to 

the subject matter of this Consent Decree and where he is the majority owner, or directly or 

indirectly controls, is hereby restrained and enjoined from failing to create and retain the 

following records: 

 A. Accounting records that reflect the cost of goods or services sold, revenues 

generated, and the disbursement of such revenues; 

 B. Personnel records accurately reflecting: the name, address, and telephone number 

of each person employed in any capacity by such business, including as an independent 

contractor; that person’s job title or position; the date upon which the person commenced work; 

and the date and reason for the person’s termination, if applicable; 

 C. Customer files containing the names, addresses, phone numbers, dollar amounts 

paid, quantity of items or services purchased, and description of items or services purchased, to 

the extent the information is obtained in the ordinary course of business; 

 D. Complaints and refund requests (whether received directly or indirectly, such as 

through a third party) and any responses to those complaints or requests; 

 E. Copies of all sales scripts, training materials, advertisements, or other marketing 

materials; and 

 F. All records and documents necessary to demonstrate full compliance with each 

provision of this Consent Decree, including, but not limited to, copies of acknowledgments of 

receipt of this Consent Decree and the Funeral Rule required by the Sections titled “Distribution 

of Order and Funeral Rule” and “Acknowledgment of Receipt of Consent Decree” and all reports 

submitted to the FTC pursuant to the Section titled “Compliance Reporting.” 

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VI. DISTRIBUTION OF ORDER AND FUNERAL RULE

IT IS FURTHER ORDERED that, for a period of five (5) years from the date of entry 

of this Consent Decree, Defendant shall deliver copies of this Consent Decree and the Funeral 

Rule as directed below: 

 A. Defendant as Control Person: For any business that Defendant controls, 

directly or indirectly, or in which Defendant has a majority ownership interest, Defendant must 

deliver copies of this Consent Decree and the Funeral Rule to (1) all principals, officers, 

directors, and managers of that business; (2) all employees, agents, and representatives of that 

business who engage in conduct related to the subject matter of this Consent Decree; and (3) any 

business entity resulting from any change in structure set forth in Subsection A.2 of the Section 

titled “Compliance Reporting.” For current personnel, delivery shall be within five (5) days of 

service of this Consent Decree upon Defendant. For new personnel, delivery shall occur prior to 

them assuming their responsibilities. For any business entity resulting from any change in 

structure set forth in Subsection A.2 of the Section titled “Compliance Reporting,” delivery shall 

be at least ten (10) days prior to the change in structure. 

 B. Defendant as employee or non-control person: For any business where 

Defendant is not a controlling person of a business but otherwise engages in conduct related to 

the subject matter of this Consent Decree, Defendant must deliver copies of this Consent Decree 

and the Funeral Rule to all principals and managers of such business before engaging in such 

conduct. 

 C. Defendant must secure a signed and dated statement acknowledging receipt of 

this Consent Decree and the Funeral Rule, within thirty (30) days of delivery, from all persons 

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receiving copies of the Consent Decree and the Funeral Rule pursuant to this Section. 

VII. ACKNOWLEDGMENT OF RECEIPT 

OF CONSENT DECREE

IT IS FURTHER ORDERED that Defendant, within five (5) business days of receipt of 

this Consent Decree as entered by the Court, must submit to the Commission a truthful sworn 

statement acknowledging receipt of this Consent Decree. 

VIII. RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this matter for 

purposes of construction, modification, and enforcement of this Consent Decree. 

 JUDGMENT IS THEREFORE ENTERED in favor of Plaintiff and against Defendant, 

pursuant to all the terms and conditions recited above. 

Entered this 11th day of September, 2012. 

 s/ Matthew F. Kennelly 

Hon. Matthew F. Kennelly 

United States District Judge

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FOR THE UNITED STATES 

OF AMERICA:

GARY S. SHAPIRO 

Acting United States Attorney 

LASHONDA A. HUNT 

Assistant United States Attorney 

219 S. Dearborn Street, Suite 500 

Chicago, IL 60604 

Telephone: 312-886-4190 

LaShonda.Hunt@usdoj.gov

STUART F. DELERY 

Acting Assistant Attorney General 

Civil Division 

United States Department of Justice 

MAAME EWUSI-MENSAH FRIMPONG 

Deputy Assistant Attorney General 

MICHAEL S. BLUME 

Director 

Consumer Protection Branch 

__/s/ Adrienne E. Fowler_____ 

ADRIENNE E. FOWLER 

Trial Attorney 

Consumer Protection Branch 

Liberty Square Building 

Room 6400 

450 5th St., N.W. 

Washington, DC 20530 

Telephone: (202) 514-9471 

Fax: (202) 514-8742 

Adrienne.E.Fowler@usdoj.gov

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FOR THE FEDERAL TRADE 

COMMISSION:

WILLARD K. TOM 

General Counsel 

C. STEVEN BAKER 

Regional Director 

__/s/ James Davis__________ 

JAMES DAVIS 

Midwest Region 

Federal Trade Commission 

55 West Monroe, Suite 1825 

Chicago, IL 60603 

(312) 960-5634 (Office) 

(312) 960-5600 (Facsimile) 

 

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FOR THE DEFENDANT:

HARRY J. CARTER III

__/s/ Harry J. Carter III_______ 

HARRY J. CARTER III 

Individually and doing business as Carter 

Funeral Chapels, Ltd. 

COUNSEL TO DEFENDANT 

HARRY J. CARTER III

__/s/ Cecil B. Lucy_______ 

CECIL B. LUCY, ESQ. 

Hyde Park Bank Building 

1525 E. 53rd St., Suite 933 

Chicago, IL 60615 

(773) 752-5777 (Phone) 

(773) 752-5733 (Fax) 

cblucy@flash.net 

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Exhibit A 

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438

§ 444.4 16 CFR Ch. I (1–1–99 Edition)

agreement creating the cosigner’s liability for future charges is executed:

NOTICE TO COSIGNER

You are being asked to guarantee this

debt. Think carefully before you do. If the

borrower doesn’t pay the debt, you will have

to. Be sure you can afford to pay if you have

to, and that you want to accept this responsibility.

You may have to pay up to the full amount

of the debt if the borrower does not pay. You

may also have to pay late fees or collection

costs, which increase this amount.

The creditor can collect this debt from you

without first trying to collect from the borrower. The creditor can use the same collection methods against you that can be used

against the borrower, such as suing you, garnishing your wages, etc. If this debt is ever

in default, that fact may become a part of

your credit record.

This notice is not the contract that makes

you liable for the debt.

§ 444.4 Late charges.

(a) In connection with collecting a

debt arising out of an extension of

credit to a consumer in or affecting

commerce, as commerce is defined in

the Federal Trade Commission Act, it

is an unfair act or practice within the

meaning of section 5 of that Act for a

creditor, directly or indirectly, to levy

or collect any deliquency charge on a

payment, which payment is otherwise

a full payment for the applicable period and is paid on its due date or within an applicable grace period, when the

only delinquency is attributable to late

fee(s) or delinquency charge(s) assessed

on earlier installment(s).

(b) For purposes of this section, collecting a debt means any activity other

than the use of judicial process that is

intended to bring about or does bring

about repayment of all or part of a consumer debt.

§ 444.5 State exemptions.

(a) If, upon application to the Federal

Trade Commission by an appropriate

State agency, the Federal Trade Commission determines that:

(1) There is a State requirement or

prohibition in effect that applies to

any transaction to which a provision of

this rule applies; and

(2) The State requirement or prohibition affords a level of protection to

consumers that is substantially equivalent to, or greater than, the protection

afforded by this rule;

Then that provision of the rule will not

be in effect in that State to the extent

specified by the Federal Trade Commission in its determination, for as

long as the State administers and enforces the State requirement or prohibition effectively.

(b) [Reserved]

PART 453—FUNERAL INDUSTRY

PRACTICES

Sec.

453.1 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.C. 46(g);

5 U.S.C. 552.

SOURCE: 59 FR 1611, 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 item. 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 limited to:

cemetery or crematory services; pallbearers; public transportation; clergy

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

and death certificates.

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Federal Trade Commission § 453.2

(c) Casket. 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) Cremation. ‘‘Cremation’’ is a heating process which incinerates human

remains.

(f) Crematory. A ‘‘crematory’’ is any

person, partnership or corporation that

performs cremation and sells funeral

goods.

(g) Direct 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

staff. 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

funeral, obtaining necessary permits,

and placing obituary notices.

§ 453.2 Price disclosures.

(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 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 § 453.4(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

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440

§ 453.2 16 CFR Ch. I (1–1–99 Edition)

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 burial container price list. (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 containers offered which do not require 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

whether the discussion takes place in

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

is removed for transportation to the funeral home, an in-person request 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 flat 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:

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Federal Trade Commission § 453.2

(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 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 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

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 placed 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 non-declinable, unless otherwise required by law.

(5) Statement of funeral goods and services 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,

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§ 453.3 16 CFR Ch. I (1–1–99 Edition)

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

§ 453.2(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 Misrepresentations.

(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 §§ 453.4(b)(1) and

453.5(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

§ 453.2(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:

(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 § 453.4(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—

(1) 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 require 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

§ 453.2(b)(3)(i), or, if the prices of outer

burial containers are listed on the general price list, required by § 453.2(b)(4),

in immediate conjunction with those

prices: ‘‘In most areas of the country,

state or local law does not require that

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Federal Trade Commission § 453.4

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, require

the purchase of any funeral goods or

funeral services when such is not the

case.

(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 briefly 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.

(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 selected,

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 for 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) Services 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

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§ 453.5 16 CFR Ch. I (1–1–99 Edition)

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 § 453.2(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

(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

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Federal Trade Commission § 455.1

through 453.5, funeral providers must

make all 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

§§ 453.2(b)(2)–(4), any statement or information 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 another. 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 Stat. 2189, 15 U.S.C. 2309; 38

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

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

otherwise noted.

§ 455.1 General duties of a used vehicle dealer; definitions.

(a) It is a deceptive act or practice

for any used vehicle dealer, when that

dealer sells or offers for sale a used vehicle in or affecting commerce as commerce is defined in the Federal Trade

Commission Act:

(1) To misrepresent the mechanical

condition of a used vehicle;

(2) To misrepresent the terms of any

warranty offered in connection with

the sale of a used vehicle; and

(3) To represent that a used vehicle is

sold with a warranty when the vehicle

is sold without any warranty.

(b) It is an unfair act or practice for

any used vehicle dealer, when that

dealer sells or offers for sale a used vehicle in or affecting commerce as commerce is defined in the Federal Trade

Commission Act:

(1) To fail to disclose, prior to sale,

that a used vehicle is sold without any

warranty; and

(2) To fail to make available, prior to

sale, the terms of any written warranty

offered in connection with the sale of a

used vehicle.

(c) The Commission has adopted this

Rule in order to prevent the unfair and

deceptive acts or practices defined in

paragraphs (a) and (b). It is a violation

of this Rule for any used vehicle dealer

to fail to comply with the requirements set forth in §§ 455.2 through 455.5

of this part. If a used vehicle dealer

complies with the requirements of

§§ 455.2 through 455.5 of this part, the

dealer does not violate this Rule.

(d) The following definitions shall

apply for purposes of this part:

(1) Vehicle means any motorized vehicle, other than a motorcycle, with a

gross vehicle weight rating (GVWR) of

less than 8500 lbs., a curb weight of less

than 6,000 lbs., and a frontal area of

less than 46 sq. ft.

(2) Used vehicle means any vehicle

driven more than the limited use necessary in moving or road testing a new

vehicle prior to delivery to a consumer,

but does not include any vehicle sold

only for scrap or parts (title documents

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