09/16/2004

Funeral Consumer Alliance Surveys - Ohio Funeral Home Price Lists

By: T. Scott Gilligan, OFDA General Counsel

In the past ten years, the primary thrust of Funeral Rule enforcement has been the FTC's undercover shoppers program. The principal concern of that program has been to test whether consumers are receiving price lists in a timely manner. Consistent with its belief that the timely receipt of the General Price List is the cornerstone of the Funeral Rule, the FTC has not been overly concerned that the form and content of the price lists be in strict compliance with the detailed itemization and disclosure requirements contained in the Funeral Rule.

The Funeral Consumer Alliance, a self-described funeral consumer advocacy organization, has undertaken a program to gather funeral home price lists to check them for compliance with the Funeral Rule. In the past six months, state and local FCA Chapters have conducted these price lists surveys in Tennessee, Massachusetts, and central Ohio.

At the June 16, 2004 meeting of the Ohio Board of Embalmers and Funeral Directors, representatives of the Funeral Consumer Alliance of Central Ohio presented to the Ohio Board the results of its survey of price lists for 19 Columbus-area funeral homes. It alleged that some funeral homes were engaged in "blatantly illegal practices" and "employing misleading and manipulative tactics."

Several representatives from Columbus-area funeral homes as well as the OFDA Executive Director and General Counsel, were on-hand at the meeting and disputed the claims made by Funeral Consumer Alliance representatives. After reviewing the results of the Funeral Consumer Alliance "survey", we are aware that several of its claimed violations of the Funeral Rule are not violations at all. Nevertheless, the Funeral Consumer Alliance indicated its intent to continue to undertake these surveys and to publish the results in the future.

Even without the Funeral Consumer Alliance engaging in these price lists surveys, it is always a prudent idea for funeral homes to periodically review the form and content of their price lists for compliance with the Funeral Rule. NFDA members may still obtain a complete FTC Compliance Review for their price lists for $175.00 through NFDA. Also, funeral homes may conduct their own reviews by using the Funeral Rule compliance materials contained in the NFDA Directory of Members or through OFDA General Counsel Scott Gilligan.

In reviewing price lists, be mindful of the following items which have been targeted by the Funeral Consumer Alliance:

No Handling Fee
The funeral home may not charge any type of handling fee for third party merchandise. Also, please ensure that the funeral home charges less for its direct cremation package when the consumer provides the container than it does for its direct cremation package when the funeral home sells the container to the family.

Sheltering of Remains
Funeral homes should not have a shelter of remains charge that applies whenever a body is brought into the funeral home. Rather, normal sheltering of remains should be incorporated as part of the basic service fee. However, if the funeral home is compelled to hold a body past the normal three or four day period the funeral home typically shelters remains, the funeral home may charge for extended sheltering of remains. We recommend that the funeral home indicate on the price list when this charge will begin by using language such as: "Extended Sheltering of Remains. (This charge will begin the_________ day the funeral home is used to shelter the remains), $__________."

Positive Identification
Some consumer groups have claimed that funeral homes are unlawfully charging for positive identification of remains prior to cremation. These consumer groups believe that this is a second mandatory charge which is illegal under the Funeral Rule.

Contrary to the claims of the consumer groups, an Ohio funeral home may charge for positive identification of the remains prior to cremation since identification is required by Ohio law. In addition, this identification service may include preparing the body for identification by cleaning and disinfecting the unembalmed body.

Protective Caskets.
The Funeral Consumer Alliance objects to the use of the term "protective" when referring to a gasketted casket. While the Funeral Rule does not prohibit the use of this terminology, the Funeral Consumer Alliance alleges that it is deceptive and misleading.
Many experts in the funeral industry recommend that funeral homes use the term "gasketted" rather than "protective" or "sealer" when referring to a gasketted caskets. This term is a more accurate description and avoids claims by consumer groups that funeral homes are misleading consumers. While we do not believe the term protective or sealer is misleading, it is probably more accurate to refer to the casket as a gasketted model.

Mandatory Disclosures.
The Funeral Rule requires that funeral homes have six mandatory disclosures on the General Price List, one mandatory disclosure on the Outer Burial Container Price List, and three mandatory disclosures on the Statement of Funeral Goods and Services Selected. Funeral homes should check to ensure that the mandatory disclosures appear on the General Price List and use the wording required by the Funeral Rule.

OFDA members who receive requests by mail or by phone to submit their price lists to the Funeral Consumer Alliance should remember that a GPL only has to be given for retention in response to a face-to-face discussion. Therefore, whether you produce a copy of the GPL in response to mail or phone requests is up to you.

Of course, if a representative of a consumer group requests a GPL in person, the funeral home must provide it.

Members with questions regarding this article, should feel free to call OFDA General Counsel T. Scott Gilligan at (513) 871-6332.