FTC FUNERAL RULE EXAM QUESTIONS
AND ANSWERS 100% PASS
Federal Trade Commission (FTC) - ANS consists of five commissioners appointed by the
President for a seven year term
Purpose of FTC - ANS -maintain free and fair competition amongst businesses
-take action against monopoly, restraint of trade or unfair practices
-prevent anti-competitive trade in the market to protect consumers
Clayton Anti Trust Act - ANS -price fixing, discrimination, and unfair business practices (1914)
Fair Packaging and Labeling Act - ANS -contents, packaging, and distributor info on consumer
packaging
Truth in Lending - ANS -unfair credit and billing practices (1968)
Fair Credit Reporting - ANS -regulates the collection and dissemination of consumer credit
Robinson-Patman Act - ANS -regulates against price discrimination
Magnusson-Moss Warranty Act - ANS -warranties on consumer products
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 20
,Cooling Off Regulation for Door to Door Sales - ANS -3 days to return items costing more than
$25
-Also applies to the Funeral Rule
1914 - ANS FTC created by an act of Congress (Clayton Anti-trust Act)
1938 - ANS Wheeler-Lea Amendment adds scope of FTC as it applies to unfair and deceptive
practices
1964 - ANS FTC concludes funeral regulation is best at state level
1970's - ANS sunset legislation eliminates various regulatory boards
1972 - ANS FTC begins review of current funeral legislation
July 1973 - ANS FTC initiates non-public investigation into funeral service
1974 - ANS Magnusson-Moss Warranty Act / FTC Improvement Act gives FTC power to create
Trade Regulations Rules. FTC calls for complaints about funeral service, receives 144
1975 - ANS Initial proposed Trade Regulation Rule published
1976 - ANS FTC conducts hearings on Trade Regulation Rule nationwide
1977-1979 - ANS FTC receives temporary funding to operate, negative sentiment towards
them begin. The Russo Amendment passes in the House of Representatives, would have exempt
funeral service
April 30, 1984 - ANS Full Funeral Rule takes effect
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 20
, July 19,1994 - ANS Revised Rule takes effect
1997 - ANS test shopping begins
2008 - ANS Review of Funeral Rule closed with no changes
The FTC Rule prohibits: - ANS -misrepresenting legal, crematory, and cemetery requirements
-embalming for a fee without permission
-requiring purchase of a casket for direct cremation
-requiring the purchase of certain funeral goods and services as a condition for furnishing other
goods and services
-engaging in other unfair or deceptive practices
Violations can result in fines up to how much per violation? - ANS $10,000
Who must comply? - ANS Any person who offers both funeral goods AND services to the
public
Funeral services are: - ANS -services used for care and prep of bodies for any type of
disposition
-services used to arrange, supervise, or conduct funeral ceremony or final disposition
The rule covers you even if: - ANS -you are not a licensed funeral director
-even if a consumer only buys either good or services from you
-even if you sell goods through one business and funeral services through another
Does it apply to Pre-Needs - ANS -FTC Rule must be followed for Pre-Needs
-Rule must be followed after death of arranger if arrangements are to be altered
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 20
AND ANSWERS 100% PASS
Federal Trade Commission (FTC) - ANS consists of five commissioners appointed by the
President for a seven year term
Purpose of FTC - ANS -maintain free and fair competition amongst businesses
-take action against monopoly, restraint of trade or unfair practices
-prevent anti-competitive trade in the market to protect consumers
Clayton Anti Trust Act - ANS -price fixing, discrimination, and unfair business practices (1914)
Fair Packaging and Labeling Act - ANS -contents, packaging, and distributor info on consumer
packaging
Truth in Lending - ANS -unfair credit and billing practices (1968)
Fair Credit Reporting - ANS -regulates the collection and dissemination of consumer credit
Robinson-Patman Act - ANS -regulates against price discrimination
Magnusson-Moss Warranty Act - ANS -warranties on consumer products
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 20
,Cooling Off Regulation for Door to Door Sales - ANS -3 days to return items costing more than
$25
-Also applies to the Funeral Rule
1914 - ANS FTC created by an act of Congress (Clayton Anti-trust Act)
1938 - ANS Wheeler-Lea Amendment adds scope of FTC as it applies to unfair and deceptive
practices
1964 - ANS FTC concludes funeral regulation is best at state level
1970's - ANS sunset legislation eliminates various regulatory boards
1972 - ANS FTC begins review of current funeral legislation
July 1973 - ANS FTC initiates non-public investigation into funeral service
1974 - ANS Magnusson-Moss Warranty Act / FTC Improvement Act gives FTC power to create
Trade Regulations Rules. FTC calls for complaints about funeral service, receives 144
1975 - ANS Initial proposed Trade Regulation Rule published
1976 - ANS FTC conducts hearings on Trade Regulation Rule nationwide
1977-1979 - ANS FTC receives temporary funding to operate, negative sentiment towards
them begin. The Russo Amendment passes in the House of Representatives, would have exempt
funeral service
April 30, 1984 - ANS Full Funeral Rule takes effect
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 20
, July 19,1994 - ANS Revised Rule takes effect
1997 - ANS test shopping begins
2008 - ANS Review of Funeral Rule closed with no changes
The FTC Rule prohibits: - ANS -misrepresenting legal, crematory, and cemetery requirements
-embalming for a fee without permission
-requiring purchase of a casket for direct cremation
-requiring the purchase of certain funeral goods and services as a condition for furnishing other
goods and services
-engaging in other unfair or deceptive practices
Violations can result in fines up to how much per violation? - ANS $10,000
Who must comply? - ANS Any person who offers both funeral goods AND services to the
public
Funeral services are: - ANS -services used for care and prep of bodies for any type of
disposition
-services used to arrange, supervise, or conduct funeral ceremony or final disposition
The rule covers you even if: - ANS -you are not a licensed funeral director
-even if a consumer only buys either good or services from you
-even if you sell goods through one business and funeral services through another
Does it apply to Pre-Needs - ANS -FTC Rule must be followed for Pre-Needs
-Rule must be followed after death of arranger if arrangements are to be altered
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 20
