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Federal Trade Commission

Federal Trade Commission. FTC Glossary (Vocabulary BM6-8). Introduction. created in 1914 by an act of Congress 5 commissioners appointed by the President for a 7 year term concerned with inter-state commerce. Purpose. maintain free and fair competition in United States business

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Federal Trade Commission

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

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

  3. Purpose • maintain free and fair competition in United States business • 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

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

  5. Impact on Funeral Service • 1914 FTC created by act of Congress • 1938 Wheeler-Lea Amendment • 1964 FTC looks at funeral service and recommends regulation at the state level • November 1972 FTC begins review of current funeral service practices • 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) • 1975 initial proposed TRR published in Federal Register • 1976 FTC conducts hearings • 1977-1979 FTC receives temporary funding

  7. Impact on FS (cont’d) • 1982 FTC promulgates TRR for FS • January 1, 1984 FTC Rule (portion prohibiting misrepresentation) 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 • 1999 to present 2nd review of the Rule

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

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

  10. Pricing Methods • Itemization • Package pricing • Alternative Pricing Methods • 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) • prohibited in 6 specific areas: • 1) embalming • 2) caskets for direct cremation • 3) outer burial containers • 4) legal and cemetery requirements • 5) preservative and protective claims • 6) cash advance items

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