FTC Announces Results of Inspection of Phoenix and Scottsdale Funeral Homes for Compliance with FTCs Funeral Rule

The Federal Trade Commission staff today announced the results of a sweep of 26 funeral homes in the metropolitan areas of Phoenix and Scottsdale, Arizona, to test compliance with the FTC’s Funeral Rule. Of the 26 homes that were visited, only one home appeared to be in violation of the Rule. The Funeral Rule is designed to ensure that consumers making funeral arrangements receive price information and information that they may purchase only the goods and services they want or need. The FTC’s Western Region - San Francisco Office - coordinated the sweep as part of an ongoing nationwide law enforcement program. FTC test shoppers visited the funeral homes to determine whether the homes comply with some key provisions of the FTC’s Funeral Rule, such as the requirement that consumers be given a copy of an itemized general price list that contains mandatory disclosures and that they are shown itemized price lists for caskets and outer burial containers in a timely manner.

“The high rate of compliance among these 25 funeral homes is good news for Arizona consumers who live in the Phoenix and Scottsdale areas,” said Jeffrey Klurfeld, Director of the FTC’s Western Region.

The funeral home considered to be in violation of the Funeral Rule has been given the opportunity to resolve the possible law violations by participating in the Funeral Rule Offenders Program (FROP), in lieu of possible formal legal action, which could result in an injunction and civil penalties.

The FROP program, announced in January 1996, was developed as a joint effort between the National Funeral Directors Association (NFDA) and the FTC to boost funeral industry compliance with the Funeral Rule. Under the program, funeral homes that have failed to give test shoppers the itemized price lists in the time and manner required by the Rule are given the option of entering the FROP program rather than face possible formal legal action. If they choose FROP, they make a voluntary payment to the U.S. Treasury, in lieu of civil penalties. They also pay a fee to NFDA and enroll in a program administered by the NFDA to ensure future compliance with the Funeral Rule. The NFDA program includes a review of price lists, compliance training, and follow-up testing and certification.

The Funeral Rule was promulgated by the Commission in 1984 and revised in 1994. One of the key requirements of the Rule is that funeral homes must give consumers a copy of an itemized general price list, which is useful for comparison shopping, at the beginning of any discussion regarding funeral arrangements, goods, services, or prices. The general price list must contain a number of disclosures and other information, including, for example, that embalming is not necessarily required by law. The FTC’s Rule also makes clear that consumers do not have to buy a package funeral, but instead may pick and choose the goods and services they want.

A free FTC brochure for consumers titled, “Funerals: A Consumer Guide,” provides additional information about legal requirements and consumers’ rights when planning funerals. A free FTC handbook titled, “Complying with the Funeral Rule” provides information to funeral providers on complying with the FTC’s Funeral Rule.

Copies of the news release and the brochures are available from the FTC's Web site at

http://www.ftc.gov and also from the FTC's Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and void them. To file a complaint, or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov.