Which of the following is a primary function of the FTC in relation to funeral prearrangement?

The primary function of the Federal Trade Commission (FTC) in relation to funeral prearrangement revolves around ensuring compliance with truthful advertising. This responsibility is rooted in the Funeral Rule, which was established to protect consumers in the funeral industry. The rule mandates that funeral providers offer clear and accurate information about their services and pricing, allowing consumers to make informed decisions without misleading marketing practices.

By enforcing truthful advertising, the FTC aims to foster transparency in the funeral industry. This includes requirements for itemized pricing and disclosures that prevent deceptive practices, ensuring that consumers are fully aware of their options and the associated costs. Therefore, ensuring compliance with truthful advertising directly aligns with the FTC's mission to protect consumers by promoting fair competition and eliminating unfair or deceptive acts in commerce.

Other choices, such as setting price limits, designating approved funeral homes, or providing licenses to funeral directors, do not fall within the scope of the FTC's regulatory functions. The FTC focuses on consumer protection through truth in advertising rather than price control or licensing, which are typically managed by state-level entities or other regulatory bodies.