Federal Trade Commission (FTC), Funeral Rule

    The Funeral Rule, enforced by the Federal Trade Commission (FTC), is a federal regulation designed to protect consumers who are making funeral arrangements. The rule was enacted in 1984 and amended in 1994 to address concerns about deceptive and unfair practices within the funeral industry. The Funeral Rule establishes requirements for funeral providers to ensure transparency, fair pricing, and consumer choice. Here's a detailed overview of the key provisions and requirements of the FTC's Funeral Rule:

Disclosure of Pricing Information:

    One of the central requirements of the Funeral Rule is that funeral providers must disclose pricing information to consumers in a clear and transparent manner. This includes providing an itemized price list of all goods and services offered by the funeral home. The price list must be presented to consumers in person, over the phone, or upon request, and it must include the cost of basic services, caskets, outer burial containers, embalming, transportation, and other relevant fees.

General Price List (GPL):

    Funeral homes are required to have a General Price List (GPL) available for consumers to review. The GPL is a comprehensive document that itemizes the cost of all goods and services offered by the funeral home. It must include descriptions of each item, along with the corresponding price. The purpose of the GPL is to enable consumers to compare prices and make informed decisions about funeral arrangements.

Casket Price Disclosure:

    The Funeral Rule requires funeral providers to disclose the price of individual caskets and alternative containers available for purchase. This information must be provided on the GPL or in a separate price list specifically for caskets. Funeral homes cannot refuse to show consumers lower-priced caskets or charge handling fees for caskets purchased elsewhere.

Outer Burial Container Price Disclosure:

    Similar to caskets, funeral homes must disclose the prices of outer burial containers, such as burial vaults and grave liners. These prices must be included on the GPL or in a separate price list. Consumers have the right to choose an outer burial container from the funeral home or purchase one from an outside vendor.

Package Pricing Disclosures:

    If funeral providers offer package pricing for bundled goods and services, they must disclose the individual prices of each component included in the package. This ensures that consumers understand what they are paying for and have the option to decline any items or services they do not wish to purchase.

Required Disclosures:

    Funeral homes are required to provide certain disclosures to consumers before they purchase any goods or services. These disclosures include informing consumers of their right to choose only the goods and services they want (known as the "unbundling" requirement) and informing them of any legal or cemetery requirements that necessitate the purchase of specific items or services.

Pre-Need Funeral Arrangements:

    The Funeral Rule also applies to pre-need funeral arrangements, where consumers plan and pay for their funerals in advance. Funeral providers must provide consumers with a separate pre-need funeral contract that outlines the terms and conditions of the agreement, including the cost of goods and services, cancellation policies, and any applicable fees or charges.

Enforcement and Penalties:

    The FTC enforces the Funeral Rule through inspections, investigations, and consumer complaints. Funeral homes found to be in violation of the rule may face civil penalties, fines, or other corrective actions. Consumers who believe their rights under the Funeral Rule have been violated can file a complaint with the FTC or their state's attorney general's office.

    Overall, the Funeral Rule is intended to empower consumers to make informed decisions about funeral arrangements and to protect them from deceptive or unfair practices within the funeral industry. By requiring funeral providers to disclose pricing information and adhere to certain standards of transparency and fairness, the rule helps ensure that consumers receive the services they need at a reasonable cost and without unnecessary pressure or manipulation.