Responding to public concern over recent tragic incidents in Georgia and Florida involving cemeteries and a crematorium, the Federal Trade Commission updated Congress of the Commission's efforts to enforce the Federal Funeral Rule.

In testimony before the Subcommittee on Children and Families of the Senate Committee on Health, Education, Labor and Pensions, Eileen Harrington of the FTC's Bureau of Consumer Protection advised Senators on details of how the Federal Funeral Rule can protect consumers.

Developed by the FTC, the Federal Funeral Rule (16 CFR Part 453) took effect on April 30, 1984. The Rule requires that consumers shopping for a funeral be given accurate itemized price information, and prohibits misrepresentation and other harmful practices. In particular, the Funeral Rule prohibits:

• misrepresenting that embalming is legally required or necessary (when it is not);
• misrepresenting that a casket is required for direct cremation;
• misrepresenting that any funeral goods or services have protective or preservative abilities (when this is not the case);
• embalming without consent; or
• subjecting consumers to "tying" arrangements - requiring a consumer to purchase any funeral good or service as a condition of purchasing any other good or service

Other consumer-protection requirements of the Funeral Rule include:

• consumers have the right (with some exceptions) to choose the funeral goods and services they want;
• funeral providers must state this right in writing on the general price list;
• if state or local law requires you to buy any particular item, the funeral provider must disclose it on the price list, with a reference to the specific law;
• the funeral provider may not refuse, or charge a fee, to handle a casket purchased elsewhere; and
• funeral providers offering cremations must make alternative containers available

Harrington also testified on the FTC's concern about the recent shocking cremation- and burial-related incidents in the states of Georgia and Florida. "The conduct involved in these incidents appears to be essentially criminal in nature," she noted. According to Harrington, the FTC chose not to prosecute under federal law in those cases, because state laws provided more severe punishments leading to better probability of deterring similar future conduct.

Other testimony focused on the FTC's Funeral Rule Offenders Program (FROP), a Commission-approved industry education and certification program operated by the National Funeral Directors Association (NFDA). FROP offers a non-litigation alternative for correcting "core" violations of the Funeral Rule. Funeral providers, often found through "test shopping" industry sweeps, who have not provided the mandatory price lists can participate in FROP rather than face law enforcement action by the FTC which could result in civil penalties. Participating violators make voluntary payments to the U.S. Treasury in an amount slightly less than the $11,000 per violation civil penalty. Participants also undergo NFDA-led training and competency testing.

Harrington stated that the Commission remains cautiously optimistic about the success of the FROP program and is seeking ways to improve the program as part of its overall effort to protect consumers in their dealings with the death care industry. "By implementing FROP, while continuing to maintain some traditional enforcement presence," Harrington concluded, "we can encourage greater compliance and thus achieve greater protection for consumers."

Nationwide, 22,300 funeral homes conduct more than 2 million funerals a year. A typical funeral and burial costs $8,000. Funerals are likely to be a family's third most costly expense after purchases of homes and cars.