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Washington Report
September 2002
Online Casket Sales Are
Focus of New FTC Hearings
by Robert M. Fells, Esq., general counsel
In late July, the Federal Trade Commission announced it would convene a public workshop conference on October 8-11, in Washington, D.C., titled "Possible Anticompetitive Efforts to Restrict Competition on the Internet."
According to the FTC announcement, "The workshop will focus on how certain state regulation may have anticompetitive effects, and how certain business practices may raise antitrust concerns, in the
context of business-to-consumer e-commerce."
Of particular interest to industry members, this workshop marks the first time the FTC is focusing on efforts to restrict the online Internet sales of caskets to consumers.
The workshop is designed "to enhance the commission's understanding of particular practices and regulations" and panels will "address certain specific industries including retailing, automobiles, real estate/mortgages, health care/pharmaceuticals/telemedicine, wine sales, auctions, contact lenses, and funerals (caskets)."
The FTC announcement observed that each of these industries has experienced "some growth in commerce via the Internet, but according to various commentators, each also may have been hampered by anticompetitive state regulation or business practices. ... In addition, these industries involve goods and services that comprise a very large portion of a consumer's budget, such as homes, cars, schools and health care."
The FTC intends that each industry panel "have at least one independent analyst or academic, and also have a
representative from the affected industries (on both sides of the issue). Where appropriate, the panel will also include a representative from a government agency, including (where appropriate) representatives from different states."
The FTC stated that it hoped that "each panel will provide all sides of the issue, including perspectives of industry, intermediaries, consumers, and regulators."
With respect to online casket retailing, the FTC indicated that it wants to explore the following areas:
- What types of state regulations limit online casket sales?
- What are the costs to the consumers?
- What are the pro-consumer rationales for such regulations, particularly in light of recent controversies?
- Are there less restrictive means of achieving the same goals?
- What is the status and focus of current litigation?
The ICFA has notified FTC staff to express its interest in participating in the upcoming workshop and to submit written testimony.
Members will be updated as plans for the workshop are finalized.
Copyright ICFA 2002
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