The Funeral Rule (FTC Regulations and Consumer’s Rights)

            by Charlie Taggart, FD

            Each year, Americans arrange more than 2 million funerals for their families and friends. In fact the average consumer spends more for a funeral than for almost anything else he might buy: At an average cost of $8,500.00, a funeral may be the third most expensive consumer purchase after a home and a car.

            Accordingly, it is exceedingly important that persons arranging or preplanning a funeral understand all of their rights, both legal and ethical. I am offering this article as the first in a series designed to educate readers about one of the most difficult and costly purchases that they will make.

            The Federal Trade Commission (FTC) developed so-called trade regulations governing funeral industry practices. They went into effect on April 30, 1984 and have since been revised. The declared purpose is to enable consumers to make informed choices and decisions about funeral arrangements.

            The “Funeral Rules” require all funeral directors to give consumers accurate, itemized price information and various other disclosures about both funeral goods (merchandise) and services.  The itemized pricing for individual products can be provided in person or over the phone.

            The main purpose of this regulation is to make it easier for consumers to choose only the goods and services that they want or need, and to pay only for the goods and services selected. The rule prohibits “hidden costs” from being charged at the time that the funeral director renders his services. The Funeral Rules apply to both pre-need (pre-arranged) and at-need funeral contracts.

            According to the Funeral Rule:

·         Consumers have the right to choose the funeral good and services that they want (with some exceptions)

·         The funeral provider must state this right in writing on the General Price List

·         If state or local laws require the consumer to buy any particular item (e.g. a vault), the funeral provider must disclose this fact on the price list, with  specific reference to that law

·         The funeral provider may not refuse to handle a casket bought somewhere else, or to charge a fee for so doing

·         a funeral provider that offers cremations must make alternative containers available

Funeral providers are also prohibited from:

·         misrepresenting legal, crematory, and cemetery requirements

·         embalming for a fee without permission

·         requiring the purchase of a casket for direct cremation

·         requiring consumers to buy certain funeral goods or services as a condition for furnishing other funeral goods or services; and

·         engaging in other deceptive or unfair practices