State of New Jersey
DEPARTMENT OF LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
OFFICE OF THE DIRECTOR
124 HALSEY STREET, 7TH FLOOR, NEWARK, NJ

John J. Farmer
Christine Todd Whitman (973) 504-6534 Attorney General
Governor Mark S. Herr
Director PO Box 45027
Newark, NJ 07101

July 9, 1999

Secretary
Federal Trade Commission
Room H-159
600 Pennsylvania Avenue NW
Washington, DC 20580

RE: Comments to 16 CFR Part 453

Dear Sir/Madam:

New Jersey Division of Consumer Affairs has reviewed the proposed changes to the Funeral Rule published in the May 5th issue of the Federal Register, 64 Fed. Reg. 24, 250. The following are New Jersey's comments on the Funeral Rule:

  • Expanding Scope of "Funeral Providers" - Because caskets and monuments are such expensive items, New Jersey believes that the sellers of these items should be included in the FTC Funeral Rule for the protection of consumers. It is recommended that the exclusion of cemeteries from the definition be continued because cemeteries and funeral homes, under New Jersey law, may not be owned by the same entity. N.J.S.A. 8A:5-3
  • "Unbundling" Provisions; Handling Fees - New Jersey believes that relaxation of the "unbundling" provision would impose an unnecessary fee on the consumer simply for the handling of the casket and recommends no change to this provision.
  • General Price List - New Jersey recommends no change to the provisions of the General Price List ("GPL") Rule. The preprinted GPL simplifies the comparison shopping process.

In addition to these recommendations, New Jersey also recommends that 100% of pre-need funeral funds be placed in trust. The FTC Rule is silent on this issue. As of about 5 years ago, 19 states required 100% trusting, 4 required 90%, 3 required 85% and one each required 80%, 75% and 50%; other states' information was not available or applicable. New Jersey's experience has shown that failure to place these fund in trust accounts leads to theft, abuse and other problems.

Thank you for the opportunity to comment. If you have any questions, please advise.

Sincerely,

Edith S. Brower
Deputy Director