arrangement. Neither mother nor son ask many questions or scan your written materials carefully. Do you emphasize the higher-priced goods and services because the more she spends, the better you’ll do at work? Or do you try to present the options evenhandedly and suggest that she take time to review her options and consult with an advisor? Ethical sales tactics related to preneed sales require tailoring recommendations to knowledge of the consumer’s resources. These plain language principles, increasingly required by law in consumer transactions, are discussed in detail in Texas Administrative Code Title 7, Part 2, Subchapter A, Rule §25.4. The Department of Finance has written sample contract forms and requires anyone who sells preneed contracts to use their model contract or to submit their own contract to the Department for approval. Most states require preneed information to be presented in clear, concise language. The writer should choose everyday words and avoid complicated legal terms. If a complex term is necessary, an explanation of the term is required when it is first mentioned. Copying legal language from a document without explaining it is prohibited. Regarding style, sellers should use short, explanatory sentences whenever possible, include bullet lists, and avoid passive voice. The language must avoid repetition, wordiness, and multiple negatives, such as “this contract is not irrevocable.” In a passive voice sentence, the subject of the sentence does not perform the action, but instead receives it. For example, in the passive voice sentence, “This contract must be signed by the consumer,” the subject of the sentence is “Contract.” However, this subject does nothing; it merely gets signed. The reader may become confused because the subject does nothing; also, if the person or thing performing the action—here, “consumer”—isn’t mentioned in the sentence, the reader has no idea who performs the vital action. On the other hand, the active voice sentence, “The consumer must sign the contract” leaves no doubt. The Code explains that complex information becomes easier to understand when the seller uses a question-and- answer format or provides an example scenario. The seller should also group related points together when possible and should not repeat the same information at different points in the document. The Code even specifies fonts, font size, and margins. Refer to this useful statute as a guide when you draft written materials for the consumer. Of course, its content is tailored to Texas state law; your own state law will likely differ. ● The GPL requires the provider to include separate prices for cremations and burials when the consumer provides the urn or casket. A provider is not required to emphasize this information or offer tips on comparison casket shopping. However, since the Funeral Rule was enacted, third-party casket and urn businesses have proliferated; many people have heard of the “Costco casket.” Using the internet, consumers have many choices at their fingertips. It makes sense to tell the customer that many third-party retailers offer merchandise. ● Keep your GPL prices current. The Funeral Rule requires the list have an “effective date.”
Consumer groups look askance on preneed sales when salespeople are required to sell them by their employers. If one works for a company that implements these practices, it makes financial sense to comply with the company’s policies in order to retain a job, but in doing so one can also maintain his or her integrity. Consider the following scenario: You are meeting with an elderly person and her son in her large, well-decorated home. She is interested in purchasing a preneed A well-informed consumer Funerals rank among the most expensive purchases many consumers will ever make. A traditional funeral, including a casket and vault, costs about $7,500–$10,000, although extras such as flowers, death notices, and cemetery property can add thousands of dollars to the bottom line. Every family is different in terms of their individual funeral preferences. Most funeral practices are influenced by religious and cultural traditions, costs, and personal choices. These factors help determine whether the funeral will be elaborate or simple, public or private, religious or secular, and where services will be held. They also influence whether the body will be present at the funeral, if there will be a viewing or a visitation, and if so, whether the casket will be open or closed. These factors will also determine whether the remains will be buried or cremated. Again, this is why the often-mentioned Funeral Rule is so important. The Funeral Rule, enforced by the Federal Trade Commission (FTC), makes it possible for the consumer to choose only those goods and services he or she wants or needs, and pay only for those selected—whether she or he is making arrangements when a death occurs or well in advance. The Rule allows a consumer to compare prices among funeral homes. It also makes it possible to select the funeral arrangements the consumer wants at the funeral home of his or her choosing. (The Rule does not apply to third-party sellers, such as casket and monument dealers, or to cemeteries that lack an on-site funeral home.) Since the Funeral Rule became law over 20 years ago, it is increasingly accepted that consumers and readers of government documents should understand what they are reading. Government documents are not known for their clarity. The Funeral Rule, for example, has long sentences, is stuffed with information, and is difficult to navigate. It is ethical to write documents that consumers can understand. Many states have passed “plain language” rules for persons drafting government legislation and for service providers, such as funeral directors, who provide information to consumers. Texas, for example, requires preneed contracts to be clear and readable in both English and Spanish. A consumer-friendly general price list (GPL) The following suggestions, compiled from state statutes, the National Funeral Directors Association (NFDA), and other consumer group recommendations, offer possibilities for revising a GPL to make it clearer for the consumer: ● Clearly define what “goods” and “services” mean and the difference in how prices are handled. ● In any contract, identify all goods and services purchased so clearly that someone with no knowledge of these purchases will understand what they are. ● Specify each good and service not included in the contract. ● Clarify if the contract excludes cemetery services and goods.
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Book Code: FTX1625
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