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US Federal Trade Commission: review16cfr453

US Federal Trade Commission: review16cfr453

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Published by: ftc on Jan 21, 2008
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0009722
FEDERAL TRADE COMMISSION
REPORT OF THE PRESIDING OFFICER ON
A TRADE REGULATION RULE PROCEEDING:
REVIEW OF THE FUNERAL INDUSTRY PRACTICES TRADE
REGULATION RULE
16 CFR PART 453
PubliC Record (215-66)
R011004
This report required by 16
CFR 1.
13(1) of the
CommlsslonTRules of Practice
contains the Presiding Officer
s recommended decision based upon his findings
and conclusions as to the relevant and material evidence In the rulemaklng record.
It has not been
reviewed or approved by the
Commission or the
Bureau of
Consumer Protection.
HENRY B. CABELL
PRESIDING OFFICER
JULY 1990
 
TABLE OF CONTENTS
Introduction.
..... I'"
 
Preliminary Matters.
 
I ""
, I
"'"1
The Funeral Rule.......
 
Price disclosures......................
I . . . . . .
Misrepresentations.
. . . . . . I . . . . . . . . . . . . . . . . . . . .
a.Embalming.......
. . . . . . . . . . . . . . . . . . I . . . . .
h.
Caskets for cremation..........
c.
Outer burial containers.......
I . . . . . . . . .
d.
Legal and cemetery requirements.....
e.
Preservative and protective claims.... .
f.
Cash advance items....".................Required purchases of funeral goods
or
serv
ces.........................
I I . . . . . . . .
a.
Casket for cremation.
b.
Other required purchases................Services without prior approval...............Miscellaneous provisions......................Objectives of the Rule and of this review.
 
II.
Findings.
. . . . . . . . I . . . . . . . . . . .
 
Compliance with the Rule.
 
Introduction.
The Baseline Study............................The 1987 Replication Study................
The Gallup Survey.............
Other surveys of compliance...
The issue of recall...........................Compliance with the misrepresentationprovisions of the Rule........................
Views of industry members regarding
compliance.
Sufficiency of the level of compliance........Consumer selection of funeral providers andgoods and services..........................
 
Selection of the funeral home.................
Funeral service options............
I . . . . . . . . . .
Selection of goods and services......
Consumer knowledge of the Funeral Rule........
Conclusions.
 
C. Costs and benefits of the Rule..................... 72
1. General......
2. The Bureau of Economics econometric analysesto determine the effect of the Funeral Rule... 78a. The cross-section analysis............... 79b. The time-series analysis................. 82
3.
Monetary costs...............
4.
Non-monetary costs.. t
. I . . I . . . . . . . . . . . . . . . . . . ..
a.
Requests for permission to embalm....... 91
b.
The affirmative price disclosure
requirement.
5. Assessing the effects and benefits ofthe Rule...................................... 96a. The effect of the Rule on purchasesof funeral goods and services............ 96b. Benefits of the telephone price
disclosure provision. .................... 102
c. The general price list requirement....... 108d. Effect of the misrepresentation
provisions.
113
( 1) The
embalming misrepresentationand disclosure requirement........ 113(2) Caskets for cremation............. 114(3) Outer burial containers........... l17
(4) Preservative and protective
value claims...................... 120(5) Cash advance items................ 121e. Consumer satisfaction.................... 121f. Anecdotal evidence--views of state
officials and others............
124
D. Proposals for extension of the Rule...............
126
1. The Rule limitations.......................... 1262. Extension of the Rule to cemeteries........... 1273. Extension of the Rule provisions
affection cremation....
143
a. Cremation standards............
........ 143
b. Al ternati ve container
standards.......... 1484. Application of the Rule to the pre-needpurchase of funeral goods and services........ 1535. Extension of the Rule to prohibit caskethandling fees................................. 163

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