make a decision, based on objective criteria, about 
the comparability of a needed substitution. 
(6) No substitution shall be made without the 
consent of the purchaser, or upon the purchaser’s 
death, the person authorized to make funeral ar-
rangements. A prepaid contract must contain a pro-
vision, which is initialed by the purchaser, either 
prohibiting any changes, or, alternatively, specifying 
what instructions may be modified and by whom. 
(7) There shall be an explanation of how the 
purchaser’s funds will be protected to assure the 
seller’s performance in compliance with the pre-
vailing prepaid contract law. The name of the insti-
tution where funds will be deposited in escrow must 
be disclosed. The buyer must receive an annual re-
port from the escrow agent. An administrative fee, 
not to exceed 1 percent of the contract, may be with-
drawn annually by the escrow agent. 
(8) The prepaid contract shall provide for can-
cellation and refund or transfer of the contract with 
no loss of benefits paid by the purchaser along with 
accrued interest. 
(9) A prepaid contract may be made irrevocable 
only when the beneficiary will be applying for med-
icaid or other social benefits within the next 6
months. The irrevocability of the prepaid contract 
shall not affect the right of the purchaser to change 
the provider. 
(10) Copies of the prepaid contract and supple-
mental material, such as information on credit life 
insurance and transfer or exchange plans, shall be 
provided to the purchaser at the time of the preneed 
sale. 
(11) Copies of the prepaid contract and at-need 
documentation shall be provided to the person au-
thorized to make the final funeral arrangements at 
the time of death to ensure that the merchandise 
and services match those specified in the prepaid 
contract. A list of items substituted shall be in writ-
ing and included in the at-need documentation. 
(12) Copies of all prepaid contracts and at-need 
documentation shall be retained by the seller for a 
period of 1 year after performance of the contract. 
SEC. 13. CONSUMER DISCLOSURES IN PREPAID CON-
TRACTS. 
Not later than 1 year after the date of enactment 
of this Act, the Commission shall establish minimum 
standards and requirements with respect to State man-
dated consumer disclosures in prepaid contracts for the
purchase of funeral, cemetery, or crematory goods or serv-
ices, including— 
(1) basic information identifying the seller, the 
purchaser, the entity that will provide the goods and 
services (if different from the seller), the prices of 
the goods and services being purchased on an 
itemized basis, and the total price of the purchase; 
(2) funding information disclosing where, how, 
and with whom the prepaid funds will be deposited 
and invested, and what portion of the prepaid funds, 
if any, will be paid to the seller prior to the perform-
ance of the contract; 
(3) price and payment disclosures regarding to 
what extent the prices of the goods and services are 
guaranteed or not guaranteed, who is responsible for 
any payment shortfalls, and who is entitled to re-
ceive excess funds; and 
(4) cancellation and transfer information dis-
closing whether the consumer may cancel or transfer 
the prepaid contract, the method for exercising such 
rights, the amount of revocation or transfer fees, if 
any, retained by the seller, and safeguards for the 
consumer if the seller is unable to provide the goods 
and services in the contract.
SEC. 14. PRIVATE RIGHT OF ACTION. 
In addition to the remedies identified in the Federal 
Trade Commission Act (15 U.S.C. 41 et seq.), a person 
who is injured by a violation of this Act may commence 
a civil action against the funeral provider. Such person 
shall be entitled to recover the greater of actual damages 
or $5,000 for each violation proved by a preponderance 
of the evidence. 
SEC. 15. ENFORCEMENT BY THE COMMISSION. 
The Commission shall enforce the provisions of this 
Act in the same manner, by the same means, and with 
the same jurisdiction, powers, and duties as though all ap-
plicable terms and provisions of the Federal Trade Com-
mission Act (15 U.S.C. 41 et seq.) were incorporated into 
and made a part of this Act. 
SEC. 16. ADMINISTRATION AND RULEMAKING. 
(a) ADMINISTRATION.—The provisions of this Act 
shall be administered by the Commission. 
(b) RULEMAKING.—Notwithstanding any other provi-
sion of law, the Commission may prescribe rules in accord-
ance with section 553 of title 5, United States Code (com-
monly known as the ‘‘Administrative Procedure Act’’) to 
carry out the provisions of this Act.
SEC. 17. STATE EXEMPTIONS. 
A provision of this Act, or a regulation issued by the 
Commission pursuant to this Act, shall not be in effect 
in a State if— 
(1) the appropriate State agency requests such 
provision or regulation not be in effect in the State; 
(2) there is a State requirement in effect that 
applies to a transaction to which the provision or 
regulation applies; 
(3) the State requirement affords an overall 
level of protection to consumers that is equal to, or 
exceeds, the level of protection afforded by the provi-
sion or regulation; and 
(4) the Commission determines that the State 
is administering and enforcing the State require-
ment in a manner that affords a level of protection 
to consumers that is equal to or exceeds the level of 
protection afforded by the Commission’s enforce-
ment of such provisions or regulations. 
SEC. 18. DECLARATION OF INTENT. 
This Act does not apply to the business, or acts in 
the conduct of the business, of insurance.
SEC. 19. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Fed-
eral Trade Commission $5,000,000 for each of fiscal years 
2005 through 2010 to carry out this Act. 
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