The FTC Funeral Rule has been in effect since 1984 and was revised in 1994. Unfortunately, there are still funeral directors that ignore the requirements or are just negligent in complying. A client recently called me about a warning that he received from a state regulator that the GPL used by his firm was not in compliance with the FTC Funeral Rule. The client was very surprised since he believed the Guidelines issued by the FTC had been followed. The Guidelines are contained in a publication titled “Complying With the Funeral Rule” that can be downloaded from the FTC.gov website. It is a good idea for every funeral provider subject to the Rule to review the Guidelines on a regular basis. The Guidelines were updated in August of 2012.

  After the author reviewed the client’s forms it was concluded the regulator was correct. Upon further discussion with the client it was discovered that the client interpreted the Guidelines as being permissive and just suggestive of what is required. However, this really is not the case and a funeral provider that deviates from the requirements can be in violation. For example it states at page 6 of the Guidelines the following:

  “Required Disclosures on the GPL

  The Rule also requires you to make six disclosures on your General Price List. These disclosures discuss:

1.      The consumer’s right to select only the goods and services desired;

2.      Embalming;

3.      Alternative containers for direct cremation;

4.      The basic services fee;

5.      The Casket Price List; and

6.      The Outer Burial Container Price List.

  Each of these disclosures is discussed in the following sections. You must place these required disclosures on the General Price List exactly as the Rule provides. (See also Sample 1 GPL at the end of this publication.)

  In addition, you must use the identical wording given in the Rule. You cannot edit or paraphrase.” (Emphasis supplied)

  Please note the Guidelines use the term “exactly” and “identical.” What may be confusing is another statement in the Guidelines immediately preceding the Sample Forms at page 27 that provides:

“The FTC staff has attached these sample price lists to help you to understand the Funeral Rule's requirements. You do not have to adopt these sample price lists. They are only examples. In addition, the fact that the FTC staff has developed these price lists does not mean that this format is the only appropriate one. A variety of formats will satisfy the Rule's requirements.”

  It is the author’s experience that it is not prudent to vary too much from the sample forms, as this is what regulators will refer to when determining compliance. If the GPL and other forms required by the Funeral Rule are not in compliance with the requirements there can be severe penalties. Since there is a tremendous amount of information available from the FTC, industry associations and private sources about the requirements for these forms, there really is no excuse for the failure to comply.