Page 2 August/September 1998 Volume 1.7

The National Casket Retailers Association, Inc. will elect its 1999 Officers and Board Members by ballot between October 15^th and November 1^st, 1998. Current Officers and Board Members will remain in office until December 31^st, 1998. The newly elected Officers and Board Members term will begin on January 1^st, 1999 and end December 31^st, 1999. (We are electing early this year to avoid the holidays)

The year 1999 will be a very important year for Casket Stores, It is the year the Federal Trade Commission is supposed to review the Funeral Rule. This means the membership must elect people with strong leadership skills who will fight for our rights during Funeral Rule proceedings.

At Previous elections members elected officers and board members who they were unfamiliar. This election you have the opportunity to meet the candidates face to face at the Dallas Convention, Don’t miss out on this opportunity.

The positions available are:

If you wish to be a candidate, You must notify us by:

Phone: 847-662-4664

Fax: 847-662-4411

You must announce your candidacy before 10-01-98

The National Funeral Directors Association (National Funeral Directors Association) has asked the Federal Trade Commission for an early review of the Funeral Rule. Under the guise of consumer protection. They want to add "Unregulated" Casket Stores, and Cemeteries to the Funeral Rule.

A recent survey of Casket Stores shows that Casket Storeowners, in general, think it’s a good idea to be under the Funeral Rule. Casket Stores do not provide any services (Except maybe a delivery service) so our GPL might have our delivery service charge and our casket price ranges.

One member said if he was under the Rule he would reduce his casket prices (Example: Currently Charging $800 for a casket would charge only $400 for casket and $400 Non-Declinable to cover overhead).

One member said maybe they want to make us give out our Casket Price List upon request, I already do when requested by phone or in person and I have them outside my store for anyone to pick-up at any time of day or night. But that means the Funeral Homes will also have to give out a CPL., which they currently do not.

One member pointed out that the Funeral Directors typically mark-up Cash Advance Cemetery expenses, so if Cemeteries were forced to give out printed price information it would be harder for the Funeral Directors to mark-up these items. They would also have to give Printed prices if they attempted to Cash Advance Cemetery expenses.

Some Funeral Directors are not afraid to tarnish their reputation by penalizing consumers with the National Funeral Directors Association phony pricing scheme. Casket Stores continue to send complaints to the Federal Trade Commission, regarding this scheme. However, the overburdened and under funded Federal Trade Commission has yet to take any action against the offenders

We have heard rumors of an early review of the Funeral Rule. Casket Stores welcome the opportunity to participate in the review.

The Funeral trade press recently quoted Kelly Smith, The public relations director for the National Funeral Directors Association, as saying "The retail casket stores have presented an image that they are cheaper than funeral homes, but we have found that in some markets, funeral homes casket prices are lower, such as in Milwaukee". When we interviewed Maynard Cheris, The owner of several casket stores, one in West Allis, WI. (Milwaukee Suburb) he had a whole different story.

Editor: "Are you seeing lower casket prices in the Milwaukee market?"

Cheris: "No, But some funeral homes in the Milwaukee area are following the National Funeral Directors Association pricing scheme which eliminates consumer savings"

Editor: "How do they eliminate savings?"

Cheris: "Simple, if the total usual service price is $2500 they add a penalty for those who buy an outside casket. (The penalty equals the savings at the casket store) Lets say in Milwaukee they add a $1500 penalty to the $2500 service price for a total of $4000. If you buy a casket from the Funeral Home you get a so-called $1500 discount back to the usual price of $2500, but if you buy a third party casket you pay $4000 and get penalized $1500" (Continued on Page 4)

 Page 4 August/September 1998 Casket Retailing Volume 1.7

Continued from page 3 (Above the Law)

Editor: "Are all funeral homes in the area practicing the scheme?

Cheris: "No. The National Funeral Directors Association cannot convince everyone to blindly follow the "Pricing Guidelines". Some won’t join the conspiracy. One conspirator, Church and Chapel in Milwaukee, has been telling consumers that "A new June 1^st law allows them to charge $1500 extra for an outside casket". They are confused. There is no new June 1^st law. That is when the National Funeral Directors Association came out with the updated pricing Guidelines.

Cheris: We have been gathering evidence for over two years, and now we intend to have our day in court.

Editor: "What kind of evidence?"

Cheris: " Before we opened our stores we gathered every GPL from every Funeral Home in our trading area, and we have continued to do so regularly. Our evidence is not only before and after GPL’s, but we also have statements from consumers" (See example below)

Editor: "What is the nature of your complaint?"

Cheris: It’s obvious that when numerous Funeral Homes do the same thing at about the same time, they have conspired for the purpose of eliminating casket store competition and maintaining their inflated prices How can a licensed professional risk back-dating his price list?

Editor: "A lawsuit in Federal Court could run several hundred thousand dollars and could take several years . . . are you prepared for that?"

Cheris: "Yes, we have been a Plaintiff in federal court before, and feel this cause is worth while, We have worked with the same law firm for 25 years and they have a solid track record. "

Editor: "Is the National Funeral Directors Association correct when they say that this issue has already been decided in PFDA Vs

Federal Trade Commission?"

Cheris: " The PFDA motion to allow casket-handling fees was denied by the court. However, there was language that allowed a discount on packages. Neither the Federal Trade Commission nor the Court contemplated or authorized phony discounts. (I.e.: a discount is a reduction in the regular price) In their Pricing Guidelines the National Funeral Directors Association encourages inflating prices before discounting. This is not a complaint about a legitimate reduction from the usual price. If this pricing practice were legal why does the National Funeral Directors Association caution not to make the discount unreasonable… why a limit?"

** Price list claims amount is $1,500.00 actually $1,400.00