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Receipt of Third Party Merchandise

Receipt of Third Party Merchandise. FTC Opinion Letter April 19, 2010. The Rule prohibits funeral providers from “tying” services to purchase of goods. The Rule bans the following activities: Requiring consumers to be present at delivery. Refusing to sign delivery acknowledgements.

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Receipt of Third Party Merchandise

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  1. Receipt of Third Party Merchandise

  2. FTC Opinion LetterApril 19, 2010 • The Rule prohibits funeral providers from “tying” services to purchase of goods. • The Rule bans the following activities: • Requiring consumers to be present at delivery. • Refusing to sign delivery acknowledgements. • Charging storage fees. • Charging fees to dispose of packing materials. (Exception to be addressed later.)

  3. Delivery Times • Funeral firms must accept third-party casket deliveries during their usual business hours. • Cannot require deliveries by appointment only. • Exception: small firms that do not have staff available during normal business hours. • Exception: not required to accept casket delivery during funerals, viewings etc.

  4. Delivery Requirements • FH may not set time parameters for at need casket deliveries. (Possible exception according to Scott Gilligan: can require it be delivered in sufficient time for “casketing”.) • FH must still accept “late deliveries”.

  5. Unpacking/Unloading • FH not required to provide personnel or pay someone else to do it. • Must allow delivery people to use equipment on hand to transport caskets into the FH. • FH may require casket company to haul away all packing materials ONLY if the requirement includes ALL casket providers. • FH may not charge consumer for disposal of packaging and shipping materials.

  6. Disparaging Third Party Sellers • Section 5 of the FTC Act prohibits all businesses, including funeral firms, from misrepresenting materials or making misleading or deceptive statements to consumers.

  7. Recommendations by Scott Gilligan • NFDA has “Receipt of Third Party Merchandise” form available on their website • Document the condition of the casket upon receipt. • Sign a statement that acknowledges receipt from the SUPPLIER for use in the funeral of the DECEDENT. • Does not constitute legal acceptance of the MERCHANDISE or its condition. (That can only be given by the PURCHASER of the merchandise.)

  8. Third-Party Casket Issues • Is the FH legally obligated to store the casket? • Can the FH charge a fee for picking up the casket at the airport? • May the FH insist that the family sign an “indemnification form” that releases the FH is the casket is defective?

  9. Hiring Outside Service Providers NFDA’s Best Practices

  10. NFDA Recommendations • Interview at least 2 candidates & inspect facilities that will be used. • Ask for list of clients & references & follow-up. • Check provider’s license with licensing authorities. • Should be active members of trade and professional organizations. • Employees should be bonded, certified etc. • Show proof of insurance.

  11. Contracts with Outside Service Providers • Avoid lengthy terms, ideally you can terminate with little or no notice. • Avoid automatic-renewal provisions. • Avoid signing a contract that ONLY allows you to discharge the OSP “for cause”. • Written contract should spell out duties, job-performance criteria and obligations of the OSP. • Have a prohibition against assignments.

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