FTC Tests Funeral Homes for Compliance With Funeral Rule; New Brochure Explains Consumer Rights Under Federal Law

The Federal Trade Commission today announced the results of enforcement sweeps of more than 100 funeral homes in seven states to assess their compliance with the FTC’s Funeral Rule, and a new consumer brochure, “Paying Final Respects: Your Rights When Buying Funeral Goods & Services.”

During the past year, undercover visits to funeral homes in California, Georgia, New York, Ohio, Oklahoma, Oregon and Texas found violations at 12 funeral homes. Faced with the prospect of FTC lawsuits that could lead to a court order and civil penalties, these funeral homes elected to participate in a voluntary compliance program, the Funeral Rule Offenders Program (FROP). The FTC also sent enforcement letters warning 32 other funeral homes to correct technical violations of the Rule or face possible enforcement action.

The Funeral Rule requires funeral homes to give consumers an itemized General Price List (GPL) at the start of a visit to the home to make funeral arrangements. Funeral homes also must show consumers separate casket and outer burial container price lists if those prices are not included in the GPL. By requiring itemized prices, the Rule gives consumers the ability to compare prices among funeral homes and buy only the goods and services they want.

FROP is a five-year compliance training and monitoring program run by the National Funeral Directors Association (NFDA). Funeral homes that participate in the program must make a voluntary payment to the U.S. Treasury in lieu of a civil penalty, and pay annual administrative fees to the NFDA. They receive on-site compliance training, legal review of price list disclosures required by the Funeral Rule, and regular testing and compliance monitoring.

The year-long sweeps completed in 2006 were in Alameda County, California; DeKalb County, Georgia; North Westchester and Putnam County, New York; Youngstown and Warren, Ohio; Bryan, Johnston and Noble counties in Oklahoma; Eugene, Springfield, and Salem, Oregon; and Longview and Marshall, Texas. Since the FROP was established in 1996, the FTC has surveyed the compliance of more than 1,850 funeral homes in 33 states, and referred some240 funeral homes to the FROP. In its enforcement sweeps, the FTC has benefitted from assistance from AARP and several state Attorneys General. This year’s sweeps were conducted by the FTC’s regional office staff. The Civil Enforcement Division of the Oregon Department of Justice provided particularly valuable assistance.

The new brochure, “Paying Final Respects: Your Rights When Buying Funeral Goods & Services,” also available in Spanish, includes information about the Funeral Rule, consumers’ rights, cost considerations, resources to help consumers plan funerals for themselves and others, and suggestions for resolving any problems they may have with funeral services they obtain. The brochure is available at http://www.ftc.gov/bcp/edu/pubs/consumer/products/pro26.shtm. The FTC also has produced a more comprehensive pamphlet, “Funerals: A Consumer Guide,” which is available at http://www.ftc.gov/bcp/edu/pubs/consumer/products/pro19.shtm.

The FTC works for consumers to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint in English or Spanish (bilingual counselors are available to take complaints), or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to thousands of civil and criminal law enforcement agencies in the U.S. and abroad.