Federal Trade Commission communication hints at “Funeral Rule” retention & modification

The Federal Trade Commission issued the “Funeral Rule” in 1982 with an effective date of September 1984.  Since that time it has operated as a consumer tool for price comparison in the funeral home market.  This recent communication from the FTC asks for additional comments on several items by January 3, 2023, as the FTC states, “Based on the comments received in response to the Rule Review, along with the prior rulemaking records and the Commission’s experience enforcing the Rule, the Commission has determined the Rule continues to serve a useful purpose and should be retained. The Commission now seeks additional comment on possible modifications to the Funeral Rule.”

From my point of view that is about as clear-cut statement that the “Funeral Rule” is staying put and that it will have modifications — most likely, in my opinion, would be a modernization that would include online pricing.

The FTC mentions in the communication that they received 785 comments on the Rule since it has been up for oversight and review.  Of these comments, 689 came from individuals and the FTC states that “most commentators expressed support for the Rule“.

The purpose of this latest communication from the FTC is to inform us that before finalizing any changes or modernizations of the Funeral Rule, they are seeking additional comments on 7 topic areas.  Here is how they list those topic areas:

(1) Whether and how funeral providers should be required to display or distribute their price information online or through electronic media

(2) Whether funeral providers should be required to disclose third party crematory or other fees on the GPL

(3) Whether the Rule’s requirements regarding reduced basic services fees should be amended

(4) Whether the Rule should be amended to account for new forms of disposition

(5) Whether the Rule’s embalming disclosure requirements should be amended

(6) Whether the Rule should be changed to improve the readability of the price lists

(7) Whether changes should be made to the Rule to avoid negatively impacting underserved communities.

Comments are being accepted until January 3, 2023.  The linked article has all the information for one to know if they would like to be heard.

Regardless of what you think of the Federal Trade Commission and their stance on the “Funeral Rule”, I would suggest taking a look at this linked communication simply to get an idea of what they are thinking, and maybe more importantly, about what some of the 689 individual commentators are thinking of the funeral profession.

Here are a couple of interesting comment thoughts that I noticed:

  • “One commenter suggested that the FTC define “green burial” to “make clear that the term applies not only to provider arrangements for casketed burials in green cemetery plots, but also to arrangements using mushroom burial suits, biodegradable tree urns, and body pods in lieu of caskets.
  • “if a funeral provider offers green burials, what “this includes and the requirement for the burial board or container should be specifically stated.”
  • If funeral homes decide to post their disclosures online, it would be helpful to consumers if that information was provided in a standardized format. This requirement will impose limited burdens on businesses who are choosing to move this information online and greatly assist consumers who want to be able to compare services online from their homes.”
  • . . . .believes that the broad variety of products and services offered by funeral homes across the nation likely makes a fully standardized price list unfeasible.”

Another thing I noticed was the FTC’s take on cemeteries.  At present they are not included in the “Funeral Rule”.  Here’s what they say about including cemeteries within the “Funeral Rule”:  “The Commission’s position on this issue remains the same. No evidence of changed circumstances has been submitted that would warrant a fresh look at this issue. The Commission encourages companies or individuals with knowledge of unfair or deceptive practices by cemeteries to submit a complaint with the Commission . . “

Related ArticleDo you want your funeral to be a Porsche or Hyundai?  Funeral homes may have to post prices online for the first time.  MarketWatch

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