FTC Sweep of Tyler, Texas Area Funeral Homes Finds Substantial Compliance with Consumer Protection Law

The Federal Trade Commission announced today that it found a high level of compliance in East Texas with the FTC’s Funeral Rule, which protects consumers from abusive practices in the funeral industry. In a recent sweep of funeral homes in the Tyler, Texas area, nine of the 10 funeral homes shopped were found to be in compliance with the rule.

The FTC’s Southwest Region office test-shopped the funeral homes as part of the Commission’s ongoing nationwide law enforcement program. Under the program, FTC test shoppers visit funeral homes to see if they comply with key requirements of the law, such as providing consumers with an itemized general price list that contains mandatory disclosures and an itemized price list for caskets. The Funeral Rule is designed to ensure that consumers receive price lists and are told they can purchase only the goods and services they want or need.

“This is great news for consumers. Most of the homes we visit now are complying with the law,” said Brad Elbein, Director of the FTC’s Southwest Region.

In January 1996, the FTC announced the Funeral Rule Offenders Program (FROP), a joint effort with the National Funeral Directors Association (NFDA), to boost compliance with the Funeral Rule. Under FROP, funeral homes that do not give test shoppers itemized price lists in a prescribed time and manner may choose to enter the FROP program rather than face possible legal action, which could result in an injunction and civil penalties. If they choose FROP, they make a voluntary payment to the U.S. Treasury in lieu of civil penalties, and enroll in a program administered by the NFDA, which includes a review of price lists, compliance training, and follow-up testing and certification.

Depending on the severity of the violation, funeral homes may be given the opportunity to resolve law violations through means other than through FROP or a formal law enforcement action, which could result in an injunction and civil penalties. Among those alternative means of
resolving possible violations, a funeral home may receive a letter notifying the funeral home that it is not in compliance with the Rule and warning that future noncompliance could result in a
monetary penalty.

In the East Texas sweep, one funeral home agreed to enroll in FROP, and two funeral homes received compliance letters for lesser violations.

The Funeral Rule, promulgated by the FTC in 1984, was revised in 1994. One of
its key requirements is that, at the beginning of any discussion of funeral arrangements, goods, services or prices, consumers must receive an itemized general price list for use in comparison shopping and other information, including, for example, the fact 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, “Funerals: A Consumer Guide,” describes consumers’ rights and legal requirements. A free FTC handbook for funeral providers, “Complying with the Funeral Rule,” is also available.

Copies of the FTC brochure and other documents pertaining to the FROP program 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 or call toll-free: 1-877-FTC-HELP (1-877-382-4357).