Government warns funeral homes to stop misleading bereaved customers about pricing

The Federal Trade Commission (FTC) has warned 39 funeral homes in the United States of potential penalties if they fail to provide accurate pricing information to customers. The FTC conducted an undercover phone sweep of over 250 funeral homes and found that 38 refused to disclose pricing information or provided inconsistent details about identical services. 

Funeral homes must follow the FTC’s “Funeral Rule,” which grants bereaved consumers rights and imposes strict requirements on businesses. The rule includes the obligation for funeral homes to provide customers with a general price list, allowing them to choose desired services. The median funeral cost is $7,848, and funeral prices have risen by 4.7% between December 2022 and December 2023. 

The warning letters issued by the FTC indicate that funeral homes failing to comply could face penalties of up to $51,744 per violation.

For more information see Ramishah Maruf “Government warns funeral homes to stop misleading bereaved customers about pricing”, CNN Business, January 25, 2024.