Funeral properties warned after FTC’s first undercover telephone sweep reveals deceptive pricing

Funeral properties have been warned to adjust to federal laws after the Federal Commerce Fee performed its first undercover telephone sweep and located a number of violations of the company’s so-called “Funeral Rule.” 

The rule is supposed to permit bereaved clients to match costs between funeral properties and choose solely the specified preparations. As a part of the rule, funeral administrators should give shoppers value info over the telephone whether it is requested. Shoppers can even request a written, itemized value record at a funeral house and see a written casket value record earlier than viewing caskets. The rule additionally states that clients can use their very own casket or container at a funeral house.

The telephone sweep performed by the FTC discovered that 39 funeral properties have been violating the rule, together with some that have been failing to offer correct value info or any value info in any respect, based on a information launch from the company. 

Warning letters have been despatched to the 39 funeral properties, the FTC mentioned. The letters reiterate the funeral rule and warn that failing to adjust to it can lead to penalties of as much as $51,744 per violation. 

The telephone sweep was the primary such operation performed by the FTC. All through 2023, investigators and different FTC employees from throughout the nation positioned undercover calls to greater than 250 funeral properties in the USA. On the calls, FTC staff requested for value info. 

On 38 of the calls, funeral properties both refused to reply questions on value or supplied inconsistent pricing, the FTC mentioned. On one name, the funeral house additionally misrepresented a neighborhood well being code, telling investigators that is still needed to be embalmed. A part of the FTC funeral rule is that customers could make funeral preparations with out embalming. On one other name, the record despatched by the funeral house didn’t meet funeral rule necessities. 

The complete record of the funeral properties who obtained warning letters is accessible on the FTC’s web site.