As the Federal Trade Commission observed when setting the funeral rule, “A funeral is more than just a social ritual: It is also an expensive consumer purchase.” But unlike other major expenses, “a funeral usually must be Decisions are made under the emotional stress of bereavement. Additionally, consumers lack familiarity with the funeral transaction.” These considerations remain at the forefront of the protections funeral rules provide grieving families, but traditions and technology have changed. So what does the future hold for The Funeral Rules? Three developments deserve your attention, including new advance notices of proposed rulemaking.
First, the FTC launched a routine review of the Funeral Rule in 2020 and received 785 comments. Overall support for the rule was nearly unanimous among responding industry members, consumer groups and individuals. So the FTC decided to keep the funeral rule in place – but it doesn’t stop there.
The FTC also just released a staff report, “Purchasing Funeral Services Online: FTC’s Review of Funeral Service Provider Websites,” which explores the results of research conducted between June and September 2021—during the pandemic, Many people are unable to visit a funeral home to obtain pricing information in person. According to the report, less than 40% of funeral service providers provide any price information on their websites. Consumers can only obtain general price lists from about 24% of websites.
This research is consistent with some of the comments we received during our 2020 rule review. Many commenters raised the question: Why are funeral service providers not required to provide pricing information online and through other electronic means? In times of bereavement, especially during a pandemic, one cannot get pricing information from one funeral home to another. The availability of online information will make it easier for consumers to compare costs.
Therefore, in addition to announcing the retention of the Funeral Rule and the findings of the staff report, the FTC has issued an Advance Notice of Proposed Rulemaking seeking your input on seven issues under consideration:
- electronic price disclosure – Whether and how funeral providers are required to display or distribute price information online or through electronic media
- Cremation related costs revealed – Should funeral providers be required to disclose third-party crematorium or other charges on their master price list?
- Limited exceptions to basic service charges – Whether the requirements in the rules regarding reduction of basic service fees should be modified
- New alternative disposal methods – Whether the rules should be modified to take into account new forms of disposal
- Amendments to Mandatory Anti-Corruption Disclosures – Whether the rule’s anti-corruption disclosure requirements should be modified
- Improve price list readability – Should the rules be changed to improve the readability of the price list?
- Impact on Historically Underserved Communities – Whether the rules should be modified to avoid negative impacts on underserved communities.
After the ANPR runs in the Federal Register, you will have 60 days to submit public comments. Save steps by submitting online.
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