The Federal Trade Commission announced Thursday that it sent warning letters to 39 funeral homes after an undercover telephone investigation found that the funeral homes failed to provide accurate pricing information or provide pricing information at all.
Violations of the FTC's funeral rule, which requires funeral homes to tell people who call or visit in person about their service offerings and prices, could carry a penalty of up to $51,744 per violation.
However, the funeral homes in this investigation received warning letters. In the letters, the FTC reiterated the funeral rule and asked funeral homes to take prompt remedial action to ensure they are no longer in violation.
“We believe it is important for funeral homes to comply with the Funeral Rule and provide accurate information over the phone,” said Rebecca Plitt, an attorney with the FTC's Consumer Protection Bureau and one of the co-coordinators of the funeral rule.
During the investigation, which was the industry's first undercover telephone investigation, FTC investigators and staff made calls in 2023 to more than 250 funeral homes across the country to try to obtain pricing information, and found that 39 funeral homes violated the funeral home rule.
From the archives (December 2022): Opinion: Funeral homes should post prices online
The Federal Trade Commission declined to comment on what prompted the investigation.
In 38 calls, funeral homes refused to answer questions about pricing at all or provided inconsistent prices for identical services, the FTC said.
In one of those calls, the funeral home also misrepresented that a local health code required an embalmer to remain if more than a certain number of people wanted to view it, when the local health code did not actually require it, the FTC said.
Mummification is the process of preserving a body after death. Direct cremation does not include embalming. Most states do not require embalming of a body, and the few states that do require embalming do so only in limited circumstances, such as unavailability of refrigeration.
In another call, the funeral home promised to send a general price list, which should include important disclosures and detailed services, but instead provided prices for service packages that did not meet the requirements of the funeral rule, the FTC said.
A list of funeral homes to which the agency sent letters can be found in the FTC's press release.
“It's an important protection, especially if people can't go in person for whatever reason or are calling from out of state. It's important for people to be able to compare, because funerals can be a cost prohibitive for a lot of people,” Plett said. We hope to make difficult times easier. People are forced to make emotional decisions when they feel sad, and they are often under time pressure.
The National Funeral Directors Association could not immediately be reached for comment.
Related: Death is not a life event you can skip, and the cost is rising
Finding prices for funeral services can be difficult because funeral homes are not required to post their services and prices online.
This may change in the future. The FTC has collected public comments and is reviewing whether to require funeral homes to post their prices online. The original funeral rule, which took effect in 1984 and was amended in 1994, predates widespread use of the Internet.
From the archives (November 2022): Do you want your funeral to be a Porsche or a Hyundai? Funeral homes may have to post prices online for the first time.
The FTC also offered tips for consumers who work with funeral homes:
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Consumers should be aware that funeral homes must answer questions by phone or in person about the services they offer and disclose all of their prices.
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When you ask a funeral home about a service, such as direct cremation, inquire about what is and is not included in the price. Ask if there will be other costs, such as transportation costs, death certificates or obituaries.
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Ask the funeral home to send you an email or text message with information about prices, services and merchandise. Funeral homes are not required to send the information in this format, but many will, the FTC said.
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If you don't want to go in person, let the funeral home know you want to plan without having to visit. If a funeral home doesn't send you information about prices, services and merchandise, look for a different business, the FTC said.
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You can purchase a casket, cremation container, or urn online from a third-party manufacturer or retailer for use at the funeral home. The funeral home cannot charge a fee for the use of your item.
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You may have to pay additional fees due to state or local laws. The funeral home must list the items required by law and their cost in the written statement provided.
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Some funeral homes offer discounted funeral packages, but you don't have to purchase a package that includes items you don't want. Ask for detailed pricing. The funeral home should allow you to purchase only the services you want and need.
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Request a written statement before accepting arrangements.
