FTC Staff Issues Opinion on Use of Memorial Service Facilities
The Federal Trade Commission (FTC) Funeral Rule applies to funeral providers-companies that supply funeral or cremation merchandise and services. Recently, the FTC staff was asked if a funeral provider or crematory that is covered by the Funeral Rule is required to provide its facilities for a memorial service or cremation services for a family that purchased funeral merchandise and incurred cremation costs from other sources. The basis for the request was the Funeral Rule’s anti-tie-in provision (Section 453.4(b) (1) (i) that makes it a violation for a funeral provider to require that a consumer buy additional merchandise and services, if they purchase any. The FTC Staff issued its opinion on July 9, 2007, According to the staff, the Funeral Rule does not require a funeral provider or a covered crematory to make its facilities available for a memorial service to families who do not wish to make any other funeral arrangements or purchase merchandise or services from the provider. The staff conclude that the request could be denied because it fell under the safe harbor in Section 453.4(b)(2)(ii) that provides “[a] funeral provider shall not violate this section by failing to comply with a request for a combination of goods or services which would be impossible, impractical, or excessively burdensome to provide.” The staff indicated its conclusion was based on the following statement by the Commission made in the original Statement of Basis and Purpose for the Rule:”The Commission would not consider it a violation of section 453.4 (b) for a funeral provider to refuse doing business with a consumer who said, ‘we have our own casket, transportation, flowers, etc., but wish to use your viewing facilities for two hours next Monday.” However, there may be another restriction in a member’s state or local law. It would be prudent to check for any requirements and provide the facility- other attendees may decide to purchase merchandise and services from your business in the future.
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