FOR IMMEDIATE RELEASE: July 29, 1988 FTC CHARGES NATION'S LARGEST CASKET MAKER WITH MAKING FALSE DURABILITY CLAIMS; CONSENT AGREEMENT PROHIBITS FUTURE MISREPRESENTATIONS AND UNSUBSTANTIATED CLAIMS The Federal Trade Commission has charged the nation's largest casket manufacturer, Batesville Casket Co., with making false claims about the length of time their caskets will keep out air, water, and other gravesite substances. A consent agreement settling the charges prohibits future misrepresentations and unsubstantiated claims concerning casket durability. According to trade sources, Batesville has annual sales of more than $300 million and a 30 percent share of the casket industry. The company, which has been in business since 1879, advertises and sells its caskets throughout the United States. Batesville's protective metal caskets retail for $1,500 to $5,000. The company also sells nonprotective caskets, which are substantially less expensive. According to a complaint issued with the consent agreement, through its warranties and advertising Batesville has misrepre- sented that its caskets would ordinarily remain protective for the warranty period, in some cases 50 years. In fact, according to the complaint, the reasonably expected protective period in most soil conditions was significantly shorter. The complaint also charged that Batesville made these long- term protective claims without having a reasonable basis for them. In addition, according to the complaint, Batesville falsely represented that the Commission had approved or endorsed the company's warranty program and product design. The consent agreement, which has been placed on the public record for comment, prohibits future misrepresentations and unsubstantiated claims concerning casket durability. Under the consent agreement, whenever Batesville offers a warranty for a specific time period for a casket, it will be considered a claim that the casket will remain protective throughout that time, unless the company states otherwise. (More) …Under the agreement, Batesville also must have a reasonable basis, consisting of competent and reliable scientific evidence, for any claims it makes about the expected durability of any casket. The agreement also prohibits false claims that the Commission or any other government agency has endorsed Batesville's products or warranty or programs. Batesville must notify all media outlets in which it advertised last year that it was incorrect to interpret the company's pre-1988 warranty duration as an indication of the expected protective life of the caskets. The company must also provide that information to any funeral providers and casket showrooms that bought a casket or received marketing material from the company in 1987 that have not yet received the information. Batesville is located in Batesville, Ind. The consent agreement is scheduled to appear in the Federal Register today. It will be subject to public comment for 60 days, until Sept. 27, after which the Commission will decide whether to make it final. Comments should be addressed to the Office of the Secretary, FTC, 6th St. and Pennsylvania Ave. N.W., Washington, D.C. 20580. A consent agreement is for settlement purposes only and does not constitute admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $10,000. Copies of the agreement, the complaint and an analysis of the agreement are available from the FTC's Public Reference Branch, Room 130, 6th St. and Pennsylvania Ave. N.W., Washington, D.C. 20580; 202-326-2222; TTY 202-326-2502. # # # MEDIA CONTACT: Dee Ellison, Office of Public Affairs, 202-326-2177 STAFF CONTACT: Rachel Miller, Bureau of Consumer Protection, 202-326-2463 FTC File No. 842 3076 [batesville]