Annual All-Staff Training with the FTC Funeral Rule Coordinator Teleconference: Thursday, May 14, 2015 1-3 p.m. CT T. Scott Gilligan, NFDA General Counsel Craig Tregillus, Funeral Rule Coordinator Gilligan Law Offices Federal Trade Commission (513) 871-6332 (202) 326-2970 scott@gilliganlegal.com ctregillus@ftc.gov Teleconference Agenda Part 1. Distributing Price Information (resource pages 3-8) A. Telephone Inquiries 1. Providing Price Information 2. Non-Licensed Personnel 3. Everest Concierge Service E. Preneed Arrangements 1. Making Preneed Arrangements 2. Preneed Sales Counselors 3. Modifying Preneed Contracts B. Removals 1. Distributing the GPL 2. Embalming Authorizations 3. Removal Services F. Preventive Steps 1. Train Staff 2. Price Information Distribution Policy C. Shoppers 3. Price List Review 1. Distributing the GPL 2. Providing the CPL & OBCPL G. Review Questions D. Arrangement Conference 1. Distributing the GPL 2. Providing the CPL & OBCPL 3. Distributing Statement of Funeral Goods & Services Part 2. FTC Undercover Shopping Program (no resource pages) A. Overview of Program C. Increased FTC Monitoring of FROP B. Recommendations Compliance Part 3. Third Party Merchandise (resource pages 9-13) A. Dealing with Families 1. No Discrimination 2. Ordering Caskets 3. Storing Caskets 4. Inspection of the Casket 5. Important Information Form C. Pricing Practices 1. No Handling Fees 2. Discount Packages 3. Prohibition Against Discounting Basic Services Fee 4. Unreasonable Discounts 6. Rejection of Caskets D. Review Questions B. Dealing with Suppliers 1. Receipt Third Party Caskets 2. Delivery of Caskets 3. Disposal of Packing Material CE Attendance Record: last page of this handout.
NFDA Teleconference May 14, 2015 1-3 p.m. CT Page 2 Teleconference Resource Pages Price Information Distribution Policy... Pages 3-8 A. The General Price List... Pages 3-4 B. Casket and Outer Burial Container Price Lists... Pages 4-5 C. Statement of Funeral Goods and Services Selected... Page 5 D. Telephone Price Disclosures... Page 5 Review Questions: Distribution of Price Information... Pages 6-8 Third Party Casket Merchandise... Pages 9-13 Important Information on the Use of a Third Party Casket... Pages 9-10 Receipt of Third Party Merchandise... Page 11 Review Questions: Third Party Merchandise... Pages 12-13
NFDA Teleconference May 14, 2015 1-3 p.m. CT Page 3 Price Information Distribution Policy In order to insure compliance with the FTC Funeral Rule, all funeral directors and staff shall comply with the policy set out below when dealing with members of the public, either in person or on the telephone. A. The General Price List The current General Price List must be given to individuals who inquire in person about funeral arrangements or the price of funeral goods or services. Upon the beginning of a face-to-face discussion with a member of the public regarding funeral arrangements, the selection of funeral goods or services, or the price of funeral goods or services, you must give the General Price List to the person for retention. The following important points regarding the distribution of the General Price List should be noted: 1. The General Price List must be distributed to the consumer to keep, whether the person arranging the funeral is an individual or represents a partnership, corporation, association, memorial society, government agency or religious entity. 2. In distributing the General Price List, you should physically give it to the individual(s) you are discussing the funeral arrangements or funeral prices with. This should be done by handing the General Price List to the individual(s); it is not sufficient to simply indicate that the list is available. If the person declines to accept the General Price List, keep the list readily available for reference during the arrangement conference. 3. If the General Price List is contained in a folder or packet of information that is handed to the consumer, the funeral director should always point out to the consumer that the General Price List is in the folder or packet of information. 4. The General Price List must be distributed wherever the face-to-face discussion takes place. Therefore, if you visit the family at the residence, at the hospital or at a nursing home to discuss arrangements or discuss prices, the General Price List must be given. 5. If you are making a removal and the family asks about funeral arrangements or prices, present them with a General Price List. The only exception to this policy concerns embalming. If you ask the family for permission to embalm during the removal and you inform them that embalming is not required by law, your request for permission to embalm does not trigger the requirement to present the General Price List. However, if any other funeral goods, services, prices and arrangements are discussed at that time, immediately present the General Price List to the family. 6. Please note that the General Price List must be distributed when making preneed arrangements just as with at-need arrangements. Whenever prices or arrangements are discussed, even if on a preneed basis, the General Price List must be given. 7. If a person seeks to modify the funeral goods or the services purchased under a preneed contract, a General Price List must be provided to that person upon the beginning of the discussion. For example, if a survivor wishes to upgrade a casket that the decedent has purchased
NFDA Teleconference May 14, 2015 1-3 p.m. CT Page 4 under a preneed contract, that survivor must be given the General Price List and shown the Casket Price List at the commencement of those discussions. 8. The General Price List must be given for retention. Do not request the individual to return the General Price List nor impose a charge against any individual who retains the price list. Do not include the General Price List in a binder or place it in plastic laminate since these practices implicitly suggest to the consumer that they are not to take a copy of the GPL with them. 9. There may be occasions where you may be in doubt as to whether the General Price List must be given. In cases of doubt, it should always be your practice to distribute the General Price List. 10. If a funeral director is not available to answer an inquiry regarding funeral goods or services, or the prices of the goods and services, non-licensed personnel should still offer the General Price List to the individual making the inquiry. Do not fail to distribute the General Price List simply because a funeral director is not available. If the individual requires further information, you should arrange an appointment with a funeral director. B. Casket and Outer Burial Container Price Lists The Casket Price List and the Outer Burial Container Price List must be offered to individuals who inquire in person about these funeral goods or the prices for these goods. It is the policy of the funeral home to offer each list upon the beginning of any discussions concerning the goods or their prices, but in any event, before showing the individual the caskets or the outer burial containers. The following points should be noted by you with regard to the distribution of Casket and Outer Burial Container Price Lists: 1. As with the General Price List, the Casket and Outer Burial Container Price Lists must be shown to the individual(s) whenever a face-to-face discussion commences. You should hand these lists to the individual(s) with whom you are discussing caskets, alternative containers, grave liners, or vaults, or their prices. 2. The Casket Price List and the Outer Burial Container Price List must be shown to consumers before they are shown caskets, alternative containers, vault displays or pictures of these products. Always present the price lists before showing the consumer into casket or vault display rooms or areas. 3. The Casket Price List and the Outer Burial Container Price List do not need to be given to consumers to keep. You may ask the consumer to return the list after the discussion terminates. 4. The Casket and Outer Burial Container Price Lists are to be shown if these goods or their prices are discussed during preneed arrangements. Similarly, if a consumer wishes to upgrade a casket or vault from that specified in a preneed contract, the appropriate list is to be shown to the consumer.
NFDA Teleconference May 14, 2015 1-3 p.m. CT Page 5 5. Caskets and outer burial containers may be listed on printed lists or shown in brochures, catalogs or even by computer programs. However, whatever method is used, the information provided to the consumer must have all of the information required by the Funeral Rule, including the required heading and effective date. 6. Whatever format is used to provide the casket product information to consumers, it should include all caskets and containers regularly shown for sale by the funeral home. In the case of the outer burial containers, all vaults and outer burial containers regularly shown for sale should be listed. 7. If the Casket Price List and the Outer Burial Container Price List are contained in a folder or packet of information that is handed to the consumer, the funeral director should always point out to the consumer that these price lists are in the folder or packet of information. C. Statement of Funeral Goods and Services Selected The Funeral Rule requires the funeral home to provide the consumer for his/her retention a Statement of Funeral Goods and Services Selected at the conclusion of the discussion of funeral arrangements. All funeral goods, services and cash advance items purchased must be listed on an itemized basis. If prices of cash advance items are not known, a good faith estimate must be made. The Statement of Funeral Goods and Services Selected must be provided at the conclusion of the funeral arrangements conference. This is true regardless of whether the arrangements are for the purchase of an at-need or preneed funeral. Therefore, it will be necessary to write up the statement and provide it to the consumer during the arrangement conference. If the arrangements are made over the telephone or by internet, the statement should be promptly mailed, faxed, or electronically transmitted to the consumer. D. Telephone Price Disclosures Whenever anyone telephones the funeral home and asks about prices or funeral arrangements, all information from the General Price List, Casket Price List, Outer Burial Container Price List or any other readily available source must be provided over the telephone to such individuals. In meeting this requirement of the Funeral Rule, you must be aware of the following points: 1. Make sure that you have completely answered all inquiries over the telephone. Never insist that the caller must personally come to the funeral home in order to receive the information. 2. You should never insist that the caller identify him or herself as a condition to the disclosure of price information over the telephone. Although you may request the caller to provide his or her name, you must provide the requested information even if the caller refuses to provide identification. 3. If a funeral director is not available, non-licensed personnel should take a message and have a funeral director promptly return the call.
NFDA Teleconference May 14, 2015 1-3 p.m. CT Page 6 Distribution of Price Information Review Questions 1. A shopper comes to the funeral home seeking price information. The shopper tells the receptionist that he does not want to meet with a funeral director, but only wants a copy of the General Price List to take with him. The receptionist refuses and states that the funeral home has a policy that the General Price List cannot be given to anyone unless they first meet with a funeral director. Does this policy violate the Funeral Rule? 2. A funeral home decides not to provide price information over the telephone, but does tell any caller asking for price information that prices are available on its website. Is this a violation of the Funeral Rule? 3. If a funeral home has a website, the Funeral Rule requires the funeral home to post all of its price lists on the website. True False 4. In addition to requesting that the funeral director provide the retail prices of the caskets sold by the funeral home, a shopper calling the funeral home also asks the funeral home if he knows where the consumer could find cheaper caskets. Does the funeral director have to disclose this information under the Funeral Rule? 5. A funeral home receives an e-mail from a competitor asking them to e-mail their General Price List to the competitor. May the funeral home refuse that request under the Funeral Rule since this was not a face-to-face discussion with the competitor? 6. A funeral home posts its General Price List on the wall of the arrangement office on a big poster-size board instead of giving a copy of the General Price List to the consumer. Does this fulfill the funeral home s requirement to distribute its General Price List to consumers? 7. At the beginning of the arrangement conference, the family indicates it wants cremation. The funeral director then hands the family a special cremation services price list and does not give them a General Price List. Does the failure to give out a General Price List violate the Funeral Rule?
NFDA Teleconference May 14, 2015 1-3 p.m. CT Page 7 8. A funeral home has only one copy of its General Price List which is a plastic laminated copy. After the family makes arrangements, one of them ask for a copy of the General Price List. The funeral home does not want to give out its only laminated copy, but tells the family that they can see the General Price List by visiting the funeral home s website. Is this alternative to giving out a General Price List for retention allowed by the Funeral Rule? 9. An older couple, who are planning their preneed funerals, reviews the funeral home s website and makes all decisions regarding funeral goods and services which they will purchase. When they visit the funeral home, the funeral director hands them a General Price List, but they say they do not need one. May the funeral director make arrangements without the couple receiving the General Price List? 10. A funeral home has a preneed sales counselor who makes preneed funeral arrangements with consumers in their homes. Since the arrangements take place in a residence instead of the funeral home, a General Price List does not have to be given to the family. True False 11. A funeral home decides to place all of its caskets on its General Price List and eliminates its separate Casket Price List. Is this permissible under the Funeral Rule? 12. A funeral home does not sell any outer burial containers. Does it have to have an Outer Burial Container Price List? 13. To save inventory costs, a funeral home eliminates its casket display room and uses only a printed Casket Price List. Does this violate the Funeral Rule? 14. A son in California calls a Kentucky funeral home and makes arrangements for the direct cremation of his father who died in a nursing home in Kentucky. All of the arrangements are made over the phone. Does this violate the Funeral Rule since the consumer did not have a General Price List when the arrangements were made?
NFDA Teleconference May 14, 2015 1-3 p.m. CT Page 8 15. An elderly man has already made his preneed arrangements with the funeral home and fully funded the funeral using a guaranteed-price contract. When the man dies, the family comes to the funeral home to set the time and date for the funeral. No changes are made to any of the funeral arrangements or the funeral goods and services previously selected by the man. Does a General Price List have to be distributed to the family by the funeral home? 16. A funeral director lectures at a career day in a local high school. When students ask questions about funeral services, does the Funeral Rule require the funeral director to distribute a General Price List to the students? 17. A funeral home places its Casket Price List in a binder which is presented to each family before they see caskets. Is this permissible under the Funeral Rule? 18. A funeral home utilizes a non-licensed elderly caretaker after 8:00 p.m. to answer the phone. Is the caretaker required to provide price information over the telephone to callers who ask for it? 19. A funeral director making arrangements at the end of the day is unable to obtain an exact price for a newspaper obituary. Does the Funeral Rule require the funeral director to make a good faith estimate of the cost of the obituary on the Statement of Funeral Goods and Services Selected that is given to the family at the end of the funeral arrangements? 20. A consumer purchases a direct cremation over the funeral home s website. Since there was a purchase of funeral goods and services, does the Funeral Rule require the funeral home to provide the consumer with a Statement of Funeral Goods and Services Selected either by email or regular mail?
NFDA Teleconference May 14, 2015 1-3 p.m. CT Page 9 Important Information on the Use of a Third Party Casket You have informed us that you will be using a casket purchased from a third party supplier for the funeral services of your loved one (the third party casket ). The Funeral Home will accept that third party casket and use it in the funeral services without charging you any type of fee or imposing any type of restriction on its use. To insure that you fully understand our respective responsibilities regarding the third party casket that will be used, we would ask you to review this information sheet and ask the funeral director any questions you may have regarding the information being provided to you. 1. Timing of Casket Delivery. You understand that the primary responsibility of arranging and coordinating the delivery of the third party casket from the supplier to the Funeral Home remains with you. Please also be aware that the third party casket must be delivered at least hours prior to the first scheduled funeral ceremony involving casketed remains so the Funeral Home has a reasonable amount of time to properly prepare for the arranged funeral ceremony. If the third party casket is not delivered in sufficient time, scheduled funeral ceremonies could be delayed. 2. Casket Delivery. When you contact the third party casket company to arrange the delivery of the casket to the Funeral Home, please provide to them the information that the Funeral Home checked below: The supplier or shipper of the third party casket must call the Funeral Home during normal business hours to arrange the drop-off of the third party casket. If available, Funeral Home personnel will assist the supplier or shipper with unloading the casket from the delivery truck and moving it into the Funeral Home. The supplier or shipper of the third party casket must call the Funeral Home during normal business hours to alert us when the casket will be delivered. Because the Funeral Home personnel cannot unload casket delivery trucks, the supplier or shipper must be informed that it will have to unload the casket from the delivery truck and move it into the Funeral Home without any assistance from Funeral Home personnel. The Funeral Home will dispose of all packaging materials that are used to encase the Third Party Casket. The supplier or shipper of the third party casket must be informed that it will be required to unwrap and dispose of all packaging materials that are used to encase the third party casket.
NFDA Teleconference May 14, 2015 1-3 p.m. CT Page 10 3. Inspection of Casket. The type and condition of caskets used in funeral services are important considerations for many families. Since the Funeral Home is not supplying the casket and was not a party to the purchase agreement for the casket, we are not in a position to accept the casket on your behalf. We would recommend that you would set up a time to inspect the casket after it is delivered to the Funeral Home. Please indicate below whether you wish the Funeral Home to contact you when the third party casket is delivered so that a time can be set up for you to inspect the casket. Please contact me when the third party casket is delivered so I can inspect the casket. I do not wish to inspect the casket. Please accept the casket on my behalf. 4. Return of Third Party Casket. Although it is rare, sometimes a third party casket delivered to the Funeral Home is not the one that was ordered by the purchaser or is in a condition that is not acceptable to the purchaser. If you wish to return the third party casket to the supplier, we will assist you, but you will be primarily responsible for arranging the return. You should also be aware that your ability to return a third party casket and obtain an exchange or a refund will depend upon the terms and conditions of the purchase agreement that you have with the supplier. Some casket suppliers may not accept the return of a casket once a body has been placed into it. Other casket suppliers will accept the return of the casket, but will require that the lining of the casket be replaced, which can cost up to $400.00. Because this cost of re-lining the casket may be imposed against you by the third party supplier, we recommend that you inspect the casket after it has been delivered to the Funeral Home, but before we place the remains in the casket. 5. Acknowledgement. The undersigned acknowledges receipt of this information sheet on third party caskets. Date: Signature of Recipient Printed Name of Recipient
NFDA Teleconference May 14, 2015 1-3 p.m. CT Page 11 Receipt of Third Party Merchandise 1. PARTIES: FUNERAL HOME : SUPPLIER : DECEDENT : MERCHANDISE : (Name of Funeral Home) (Name of Supplier of Merchandise) (Name of Decedent) (Description of Merchandise including Name, Model Name and Model Number) 2. RECEIPT: The FUNERAL HOME acknowledges receipt from the SUPPLIER of the merchandise described above for use in the funeral of the DECEDENT. The receipt of the MERCHANDISE by the FUNERAL HOME does not constitute in any respect legal acceptance of the MERCHANDISE or its condition. Any such acceptance may only be given by the purchaser of the MERCHANDISE. 3. VISIBLE DEFECTS OR CONDITIONS: Although under no duty to inspect the MERCHANDISE, the FUNERAL HOME has noted below the following defects and/or conditions of the MERCHANDISE at the time of delivery: Date: _ Time: SUPPLIER: FUNERAL HOME: By: By:
NFDA Teleconference May 14, 2015 1-3 p.m. CT Page 12 Third Party Merchandise Review Questions 1. A family constructs its own casket for a traditional funeral to be held in a church. While it is sturdy enough to hold a body, it has no handles for the pallbearers to carry it. Under these circumstances, may the funeral home refuse to allow the family to use it? 2. A family indicates upfront that it will be using a third party casket. The funeral home tells the family that it does not do business with families using third party caskets. Does the refusal to provide funeral services to a family using a third party casket violate the Funeral Rule? 3. A family arranges a funeral at your funeral home, but indicates it is purchasing a casket from the funeral home down the street. It asks your funeral home to send its service van down the street to pick up the casket from the other funeral home. Are you required under the Funeral Rule to pick up the casket? 4. A funeral home does not charge a handling fee when a third party casket is used by a family. However, it does change the family a $100 fee to inspect and unpack the third party casket when it is delivered to the funeral home. Is this inspection and unpacking fee allowed under the Funeral Rule? 5. A trucking company, which is to deliver a third party casket to your funeral home, instructs you that it will be delivered at 7 p.m. You tell the truck driver it must be delivered between normal business hours of 8 a.m. to 5 p.m. May you impose that requirement under the Funeral Rule? 6. When a family uses a third party casket, you require the family member to be at the funeral home to inspect the casket when it is delivered. Does this policy of mandatory inspection violate the Funeral Rule? 7. To encourage consumers to purchase caskets from the funeral home, the funeral home offers a discounted package that is only available to consumers who purchase a casket from the funeral home. Is this discounted package permissible under the Funeral Rule?
NFDA Teleconference May 14, 2015 1-3 p.m. CT Page 13 8. A trucking company asks for your assistance in unloading a third party casket. You do not assist your wholesale casket seller in unloading caskets that your funeral home purchases. If you refuse to help the trucking company unload the third party casket, have you violated the Funeral Rule? 9. A preneed consumer has already purchased a casket and asked you to store it at the funeral home until the consumer dies and the casket is needed. You are willing to do so, but only if they pay you a monthly storage fee. Is this storage fee a violation of the Funeral Rule? 10. A family has a standard size casket which it purchased on the Internet. However, the decedent is obese and you are unable to close the lid on the casket. May you refuse to use the third party casket under these circumstances?
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NFDA Teleconference. Annual All-Staff Training with the FTC Funeral Rule Coordinator Presenters: Craig Tregillus, FTC, & Scott Gilligan, NFDA Thursday, May 14, 2015 1-3 p.m. CT 2 CE hours NFDA Teleconference May 14, 2015 1-3 p.m. CT Page 15 City/ST Firm Name_ Email address of First Registrant Firm s phone number Required to verify CE hours Instructions 1. Please fill in information at the top of this form. 2. Each funeral director applying for CE must complete and sign this form. 3. Immediately following program, FAX completed form to 1-262-789-6977, or MAIL to NFDA Professional Development, 13625 Bishop's Dr., Brookfield, WI 53005-6607 CE Attendance Record CE certificates sent to individual email address only include below. Group email address not accepted. Participant Name Please print Participant Signature 1. FD License/s # & State/s Required APFSP # (if Academy member) Your Individual Email Required 2. Your Individual Email Required 3. Your Individual Email Required 4. Your Individual Email Required Additional applicants for CE hours must have preregistered for NFDA to process CEs with state licensing boards ($60/member; $110/nonmember). CE verification from NFDA will be received via email within 2 weeks of webinar date. If this presents a problem due to licensing deadlines, please call Shari Foucault at NFDA (1-800-228-6332, ext. 1551). Participation times will be verified. I verify that above-listed participants attended this NFDA Webinar for the complete two hours. _ Signature of Funeral Home Owner or Manager Date Watch for your Evaluation Survey, which will come via email. Thank you.