WASHINGTON, D.C. — The Federal Trade Commission (FTC) recently released a detailed report summarizing the results of its inaugural undercover Funeral Rule phone sweep. The report highlights widespread compliance issues among funeral providers regarding transparency about pricing, as required by the FTC’s Funeral Rule.
Established to ensure that consumers can make informed decisions during what is often a difficult time, the Funeral Rule mandates that funeral providers must provide accurate pricing and service information when requested, including over the phone. This regulation applies to all funeral providers across the United States.
Methodology and Scope of the Phone Sweep
The undercover operation, conducted between February 2023 and December 2023, involved calls to 278 randomly selected funeral providers across the country. These were drawn from large, mid-sized, and small metropolitan and micropolitan areas to gain insight into compliance across different geographic and market settings.
FTC staff made up to three attempts during regular business hours (9 a.m. to 5 p.m.) and up to three additional attempts outside of business hours to contact each funeral provider. During these calls, staff requested pricing information for specific types of services, including direct cremation, cremation with a memorial service, and cremation with a viewing.
Key Findings from the Report
The report revealed notable gaps in compliance with the Funeral Rule. Among the 278 funeral providers contacted:
- 26% Non-Responsive After Hours: After-hours calls to 73 funeral providers did not result in the provision of any pricing information.
- 7% Non-Responsive During Business Hours: Even during standard business hours, 21 funeral providers failed to provide the requested pricing information.
- Multiple Attempts Frequently Needed: Nearly 70% of the funeral providers called after hours required either multiple calls or follow-ups to provide pricing details. For business hours, this was true for approximately 30% of providers.
- Incomplete or Vague Pricing Information: Half of the funeral providers contacted answered pricing inquiries with estimates or general price ranges rather than providing specific prices. Additionally, 33% of providers gave package pricing (such as for cremation with a memorial service) without offering itemized information for individual services.
- Discrepancies in Pricing: The report also noted that at least 37 funeral providers gave different quotes for identical services on separate calls, suggesting inconsistencies in how pricing information is communicated.
Consumer Implications
The findings raise concerns about the accessibility and reliability of funeral pricing information for consumers, particularly during time-sensitive or emotional situations. Non-compliance with the Funeral Rule not only complicates decision-making for families but also creates barriers to comparison shopping, potentially undermining fair competition within the industry.
The FTC’s report sheds light on the need for improved enforcement of the Funeral Rule and raises awareness among consumers about their rights when seeking pricing information from funeral providers. By releasing these findings, the FTC emphasizes the importance of transparency and accountability in this sensitive sector, ensuring that families have the information they need to make informed choices during challenging times.
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