1. Federal Trade Commission FTC Glossary (Vocabulary BM6-8)

2. Introduction created in 1914 by an act of Congress created in 1914 by an act of Congress 5 commissioners appointed by the President for a 7 year term 5 commissioners appointed by the President for a 7 year term concerned with inter-state commerce concerned with inter-state commerce

3. Purpose maintain free and fair competition in United States business maintain free and fair competition in United States business take action against monopoly, restraint of trade and unfair or deceptive trade practices take action against monopoly, restraint of trade and unfair or deceptive trade practices prevent anti-competitive practices in the marketplace as an aid to consumers prevent anti-competitive practices in the marketplace as an aid to consumers

4. FTC Administers: FTC Act * FTC Act * Clayton Anti-Trust Act Clayton Anti-Trust Act Fair Packaging and Labeling Act Fair Packaging and Labeling Act Truth in Lending* Truth in Lending* Fair Credit reporting Fair Credit reporting Robinson-Patman Act Robinson-Patman Act Magnusson-Moss Warranty Act* Magnusson-Moss Warranty Act*

5. Impact on Funeral Service 1914 FTC created by act of Congress 1914 FTC created by act of Congress 1938 Wheeler-Lea Amendment 1938 Wheeler-Lea Amendment 1964 FTC looks at funeral service and recommends regulation at the state level 1964 FTC looks at funeral service and recommends regulation at the state level November 1972 FTC begins review of current funeral service practices November 1972 FTC begins review of current funeral service practices July 1973 FTC initiates “non-public” investigation of funeral service July 1973 FTC initiates “non-public” investigation of funeral service

6. Impact on FS (cont’d) 1974 Magnusson-Moss Warranty/FTC Improvement Act give the FTC the power to create Trade Regulation Rules (TRR) 1974 Magnusson-Moss Warranty/FTC Improvement Act give the FTC the power to create Trade Regulation Rules (TRR) 1975 initial proposed TRR published in Federal Register 1975 initial proposed TRR published in Federal Register 1976 FTC conducts hearings 1976 FTC conducts hearings 1977-1979 FTC receives temporary funding 1977-1979 FTC receives temporary funding

7. Impact on FS (cont’d) 1982 FTC promulgates TRR for FS 1982 FTC promulgates TRR for FS January 1, 1984 FTC Rule (portion prohibiting misrepresentation) takes effect January 1, 1984 FTC Rule (portion prohibiting misrepresentation) takes effect April 30, 1984 Full FTC Regulation Rule for funeral industry practice takes effect April 30, 1984 Full FTC Regulation Rule for funeral industry practice takes effect July 19, 1994 FTC Funeral Industry Practices Revised Rule takes effect July 19, 1994 FTC Funeral Industry Practices Revised Rule takes effect 1999 to present 2 nd review of the Rule 1999 to present 2 nd review of the Rule

8. FTC Trade Regulation Rule for Funeral Industry Practices (The Rule, TRR) (The Rule, TRR) 16 C.F.R. (Commission Funeral Rule) Part 453 (Supplement p. 130) 16 C.F.R. (Commission Funeral Rule) Part 453 (Supplement p. 130) Primary Purposes Primary Purposes Requirements Requirements Funeral Provider: one who offers funeral goods and services Funeral Provider: one who offers funeral goods and services

9. Prices Disclosures (16 CFR 453.2) (16 CFR 453.2) NJ: a) unfair or deceptive acts or practices NJ: a) unfair or deceptive acts or practices b) preventive requirements b) preventive requirements Telephone Price Disclosures Telephone Price Disclosures CPL CPL OBCPL OBCPL GPL GPL SFGSS SFGSS

10. Pricing Methods Itemization Itemization Package pricing Package pricing Alternative Pricing Methods Alternative Pricing Methods Preneed Contracts entered into before the Rule went into effect in 1984, do not require disclosures unless the contract is modified. Preneed Contracts entered into before the Rule went into effect in 1984, do not require disclosures unless the contract is modified.

11. Misrepresentations (CFR 453.3) (CFR 453.3) prohibited in 6 specific areas: prohibited in 6 specific areas: 1) embalming 1) embalming 2) caskets for direct cremation 2) caskets for direct cremation 3) outer burial containers 3) outer burial containers 4) legal and cemetery requirements 4) legal and cemetery requirements 5) preservative and protective claims 5) preservative and protective claims 6) cash advance items 6) cash advance items