Government warns funeral homes to stop misleading bereaved customers about pricing

Jan 25, 2024, 6:07 PM

The Federal Trade Commission warned 39 funeral homes across the US that they risk hefty penalties i...

The Federal Trade Commission warned 39 funeral homes across the US that they risk hefty penalties if they fail to disclose accurate pricing information to customers.(Kzenon/iStockphoto/Getty Images)

(Kzenon/iStockphoto/Getty Images)

New York (CNN) — A government agency warned 39 funeral homes across the US that they risk hefty penalties if they fail to disclose accurate pricing information to customers, the Federal Trade Commission announced Thursday.

The FTC conducted an undercover phone sweep of more than 250 funeral homes, placing calls to obtain pricing information. For 38 calls, the agency said the funeral homes either refused to answer questions about pricing or gave inconsistent information about identical services.

Funeral homes have to follow the FTC’s “Funeral Rule,” which provides bereaved consumers rights during the process and holds the business to strict requirements. One of the caveats is that funeral homes must give customers a general price list, and customers have the right to choose which services they want.

Funerals can be a major financial burden for families, and they are getting more expensive. The median cost of a funeral is $7,848 and the median cost of a funeral with cremation is approximately $6,971, according to the National Funeral Directors Association. Funeral prices rose 4.7% between December 2022 and December 2023, according to CPI data.

“Telephone inquiries are particularly important for people who are grieving a loss or making arrangements for a loved one in a different city. That’s why the Funeral Rule requires funeral homes to provide accurate price information over the phone,” Lesley Fair, a senior attorney with the FTC’s Bureau of Consumer Protection, wrote in an online post.

On one call, the funeral home said local health code required the body to be embalmed, the process of preserving a body after death. Most states’ health code, including that one, actually do not require embalming, the FTC said, and most states that do only require it in certain circumstances.

Yet another funeral home promised to send a general pricing list but instead sent a list of package prices. That broke the requirements, the FTC alleged.

The agency listed the funeral homes it sent warning letters to on its site, the locations ranging from Laredo, Texas, to Philadelphia. Funeral homes that don’t comply could pay up to $51,744 per violation.

The-CNN-Wire
™ & © 2024 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Tulsi Gabbard, President Donald Trump's choice to be the Director of National Intelligence, arrives...

David Klepper, Associated Press

Senate confirms Gabbard as Trump’s director of national intelligence after Republicans fall in line

WASHINGTON (AP) — The Senate on Wednesday confirmed Tulsi Gabbard as President Donald Trump’s director of national intelligence after Republicans who had initially questioned her experience and judgment fell in line behind her nomination. Gabbard was an unconventional pick to oversee and coordinate the country’s 18 different intelligence agencies, given her past comments sympathetic to Russia, a meeting she held with […]

59 minutes ago

four-day school week...

Becky Bruce

Utah public school enrollment declines slightly statewide

Utah public school enrollment dropped about a half percent from 2021 to 2024 statewide, though some districts saw much larger gains and losses.

2 hours ago

A sign welcoming people to the city of Ogden on 25th Street....

Verl Johansen

Ogden housing among 41 metro areas with inventory levels at or above pre-pandemic levels

Ogden housing availability makes the area one of 41 metro areas with supply at or above pre-pandemic levels.

3 hours ago

An electric shuttle at the Temple of Sinawava at Zion National Park. Zion National Park shuttles be...

Mariah Maynes

Zion National Park shuttles begin 2025 seasonal service in March

Zion National Park shuttles will begin regular operation on March 2, 2025.

4 hours ago

A FrontRunner train passes under a new pedestrian bridge at 300 North and 490 West, that crosses tw...

Shara Park, KSL TV

New video shows FrontRunner hit SUV stopped on tracks in Layton

A newly released video captured the moment an SUV was hit by a UTA FrontRunner train in Layton on February 4.

5 hours ago

A West Haven house fire killed one person on Feb. 11...

Mariah Maynes and Brian Carlson, KSL TV

West Haven house fire kills 1 person

One person is dead following a house fire in West Haven, Utah.

15 hours ago

Sponsored Articles

Full speed through the snow. A man on skis is pulled by his through the snow at full gallop Skijori...

Bear Lake Convention and Visitors Bureau

Get ready for an unforgettable skijoring adventure in Bear Lake!

“Skijoring the Bear” takes place this year on February 21-22 in Garden City, Utah.

the bedroom in a geodesic dome shows the night sky...

Clear Sky Resorts Bryce Canyon

Your front row to an extraordinary cosmos show

As America's first glass dome stargazing resort, Clear Sky Resorts Bryce Canyon is one of the world’s most unique and spectacular places to stay.

2 people huddled up in a blanket and warm clothes sipping hot chocolate...

Bear Lake Convention & Visitors Bureau

The best ways to spend your Christmas vacation in Bear Lake

If you're dreaming of a white Christmas this year, Bear Lake should definitely be on your radar. Read this guide for more!

big crowd of people under holiday lights in an outdoor market...

Western Nut

Our favorite family Christmas activities in Utah

We gathered up a list of our favorite activities, movies, and treats to try this holiday season that the whole family can enjoy.

an IT tech looks at a laptop in front of a server network...

Comcast Business

Tips to protect yourself from phishing attacks

Check out this resource from Comcast Business to learn more about phishing attacks and how to protect yourself from becoming a victim of one.

A surprise gift, wrapped and ready to bring holiday cheer! Whether for Christmas, a birthday, or an...

Western Nut

10 Holiday Gift Ideas to cover everyone on your list

This guide is for you if you need holiday gift ideas that will make a lasting impression. 

Government warns funeral homes to stop misleading bereaved customers about pricing