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1 Rulemaking Record Is Inadequate for Issuing Funeral Regulation, Say Two FTC Bureau Directors [1] (1982)

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Federal Trade Commission Washington, D.C. 20580

FOR IMMEDIATE RELEASE:  July 26,  1982


                 RULEMAKING RECORD IS INADEQUATE
                 FOR ISSUING FUNERAL REGULATION,
                 SAY  TWO FTC BUREAU DIRECTORS


     The Federal Trade Commission's top consumer protection
official has urged the Commission not to issue the industrywide
funeral rule that received FTC approval last year.

     In a memo released today, Timothy J. Muris, director of the
Bureau of Consumer Protection, recommended instead that the
Commission reopen the rulemaking proceeding so it can take  into
consideration findings of important new survey data which appear
inconsistent with a major premise of the rule.  In addition,
Muris said reopening the record would allow new, statistically
valid evidence to be collected.

     Robert Tollison, director of the FTC's Bureau of Economics,
also recommended against issuing the rule, but said the record
should be closed, ending the proceeding.

     The Muris and Tollison memos are among eight documents
placed on the public record today, for consideration when the
Commission examines the funeral rule in open session at 10:00
a.m., Wednesday, July 28, in Room 432 of the FTC Building,
Washington, D.C.

     The proposed rule would require funeral directors to provide
itemized price lists to their customers and disclose prices, when
asked, over the telephone.  The rule's other provisions include
bans against misrepresenting local law, against placing
conditions on the purchase of funeral items and against claiming
that embalming preserves the body indefinitely.

     Muris' primary recommendation was to reopen the rulemaking
record, but if the Commission decides against that, he suggested
six ways to significantly strengthen the rule before it is
promulgated:

     -- Allow funeral directors to furnish prices for packages,
        instead of by item, providing there is a list of items
        customers may decline for credit.

     -- Make the required disclosures more noticeable, for
        example, by specifying the typeface and print size of
        required price lists.


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