Funeral pricing transparency and fair practices will benefit all consumers. Evidence shows that a large and growing majority of consumers expect funeral price information to be available online and that a significant and growing minority of funeral consumers, despite the lack of current price transparency, are searching for funeral prices. Today, it is particularly difficult for the elderly, disabled, transport poor, and out-of town funeral planners to compare prices, especially on the short timeline inherent to funeral planning. Online price disclosures should also be prominently placed and easily accessible.

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“CFA is encouraged that Service Corporation International, the parent company, now allows Dignity Memorial Funeral homes to post prices online but is disappointed that so many of these disclosures are hard to find,” said Stephen Brobeck, a CFA senior fellow.

CFA surveyed the websites of 320 of the some 1,300 Dignity Memorial funeral homes in the United States.  The survey found that three-quarters of the websites posted price lists somewhere yet only about one-third of all surveyed websites included a link to these prices on the home page that could be found with little scrolling down.  In nearly one-third of the surveyed websites, it appears that the funeral homes were trying to hide the price lists.  “Only a very determined or lucky consumer could find these price lists,” noted Brobeck.

CFA believes that the new price disclosures, by a company that in the past apparently refused to allow their funeral homes to post price lists, is related to the Federal Trade Commission’s (FTC) consideration of mandatory online price postings.  The FTC’s 1984 Funeral Rule required funeral homes to maintain a price list of services that is handed to prospective customers.  The basis for this rule is that funeral services are relatively complex and expensive products that are purchased infrequently at times of emotional stress.

“If the Internet had existed in 1984, the FTC would certainly have required online price disclosure for those funeral homes with websites,” said CFA’s Brobeck.  In October 2022, all four FTC commissioners voted in support of an advance notice of proposed rulemaking (ANPR) to update the agency’s price disclosure requirement under the Funeral Rule.

In a sample of 46 cities, the survey found some city and regional differences.  All or almost all funeral homes in a city often disclosed, or did not disclose, prices in the same way.  For example, homes in the Pacific Coast region usually posted their general price lists adequately.  In contrast, a large majority of New England and New York funeral homes, including 18 of 19 in the New York City area, refused to post prices.

CFA urges consumers seeking funeral services to search for price lists online.  “Researching funeral prices online can help consumers not only select the right funeral home but also assist their selection of specific services at that home,” said CFA’s Brobeck.  “We also urge caution in purchasing services from funeral homes that refuse to disclose prices,” Brobeck added.

The post CFA Survey Finds that Most Dignity Memorial Funeral Homes Recently Began Disclosing Prices Online, but Not Prominently appeared first on Consumer Federation of America.

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“If the internet had existed when the Funeral Rule was issued in 1984, the rule would certainly have required online posting of price lists,” said Josh Slocum, FCA’s Executive Director.  “Requiring online price disclosures would, for the first time, permit consumers to effectively compare prices,” he added.

Many consumers now face stiff challenges in comparing prices.

• Old persons who are ill or infirm.
• Out-of-town relatives who are planning funerals.
• Anyone without a car.
• After a death, those pressed by hospitals to make a quick decision about the disposal of the body.

Research by FCA and CFA has revealed some of the difficulties consumers currently face in obtaining price lists.

• Email or phone requests for price lists are often ignored or used by funeral homes to aggressively market their services.
• Visits to funeral homes for price lists can be followed by aggressive marketing.
• Collecting price lists from over 50 funeral homes in one city took researchers 15 hours.

Online price disclosure is important because of the lack of price competition in the funeral industry.  Huge price ranges exist for the same services.  “Our research has shown typical price ranges of 400 to 500 percent for the same service in local markets,” said Stephen Brobeck, a CFA senior fellow.  “Not all of these price differences reflect differences in service quality,” he added.

Online price disclosure would benefit all consumers, not just those who compare prices.  “Research has shown that the easy availability of price information discourages price gouging,” noted CFA’s Brobeck.  “In part, this is because third parties, such as consumer groups and journalists, can access and report on prices much more easily,” he added.

Requiring online price disclosure would cost funeral homes virtually nothing.  They already have digitized price lists and could easily post them on their websites or Facebook pages, as about one-fifth currently do.  California required online disclosure of funeral prices in 2013, and FCA and CFA are unaware of any complaints from their funeral homes about compliance costs.

Until there is required price disclosure, FCA and CFA suggest that consumers plan ahead and visit at least several funeral homes to collect price lists.  “Funerals are one of the most expensive services that consumers will purchase in their lifetime,” said FCA’s Slocum.  “Consumers can potentially save thousands of dollars by comparing funeral home price lists,” he added.  The typical funeral, according to the industry, costs over $7,000.  Elaborate funerals can cost $20,000 or more.

Contacts:
Stephen Brobeck, CFA, sbrobeck@consumerfed.org
Josh Slocum, FCA, Inc., josh@funerals.org, 802-865-8300

The post Consumer Groups Applaud the Federal Trade Commission for Considering a Needed Update of the FTC’s Funeral Rule appeared first on Consumer Federation of America.

The FTC’s Funeral Rule, first issued in 1984, requires funeral homes to maintain a detailed price list and to hand it to consumers visiting and discussing services with the funeral home.  The report notes that this price disclosure has reduced deception and fraud but has not facilitated comparison shopping of relatively expensive funeral services purchased by consumers.

“Most consumers, especially those out-of-town or having to deal with a sudden death, cannot practically visit several funeral homes to pick up price lists,” said Joshua Slocum, FCA’s Executive Director and the report’s co-author.  The Ipsos survey found that only 20 percent of 1,146 respondents who had helped plan a funeral said they had visited more than one funeral home to obtain price lists.

Only a small minority of funeral homes allow consumers to view their price lists on their websites and compare prices of more than one funeral home.  In May 2022, FCA and CFA surveyed online disclosures of general price lists (GPLs) at 1,046 funeral homes with websites in 35 state capitals.  Only 191 of these homes (18%), listed in the report’s appendix, posted their prices online.

The refusal of most funeral homes to post prices online also makes it difficult for third party information providers, such as consumer groups and journalists, to collect and compare price information.  “Online price posting would benefit not just those consumers searching for price information, but also all consumers by encouraging price competition and discouraging funeral homes from charging exorbitant prices,” said Stephen Brobeck, a CFA Senior Fellow and the report’s co-author.

There were wide differences in the percentages of those posting prices among the 35 cities.  In Sacramento, because California requires online posting, 70 percent of 45 funeral homes posted prices (30 percent chose to use a loophole in the law to avoid posting).  In Helena (MT), three of four funeral homes posted prices, and in Topeka (KS), six of 14 funeral homes posted prices.  On the other hand, no funeral homes posted prices in Dover (DE), Frankfurt (KY), Bismarck (ND), Pierre, (SD), Cheyenne (WY), Santa Fe (NM), and Jefferson City (MO).

As one moved from east to west in the sample, more funeral homes posted prices.  In five of 19 cities (26%) east of the Mississippi River, but in seven of ten cities (70%) in Mountain and Pacific states, at least one-fifth of funeral homes posted prices.  However, none of the 102 funeral homes in the sample that are affiliated with Dignity Memorial posted their prices.  Dignity Memorial is owned by Service Corporation International (SCI), which controls about ten percent of approximately 19,000 funeral homes in the U.S.

FCA, CFA, and other consumer groups submitted comments to the FTC in response to the agency’s announcement in 2020 that it was considering updating the Funeral Rule to improve price competition.  The FTC is still considering whether to initiate formal rule-making.

Despite the lack of easy access to price lists, FCA and CFA urge consumers to visit several consumer homes to obtain prices lists before choosing one.  Earlier FCA and CFA surveys, as well as other research, have revealed differences in funeral prices of up to 400 to 500 percent for the same services.

FCA and CFA also urge consumers to consider patronizing funeral homes that post their price lists online.  “Online price posting reveals whether a funeral home wishes to facilitate consumers knowing the price of their funeral services and allowing a comparison of those prices with the services of other funeral providers,” observed FCA’s Slocum.

Contacts

Josh Slocum, FCA, Inc., 802-865-8300  

Stephen Brobeck, CFA, sbrobeck@consumerfed.org 

The post Only 18 Percent of 1,046 Funeral Homes in 35 Cities Post Price Lists Online appeared first on Consumer Federation of America.

The post Online Price Posting At More Than 1,000 Funeral Homes In 35 State Capitals appeared first on Consumer Federation of America.

The post An Evaluation of Consumer Information Provided by State Funeral Regulators appeared first on Consumer Federation of America.

• Arizona State Board of Funeral Directors and Embalmers
• California Cemetery and Funeral Bureau
• Kansas State Board of Mortuary Arts
• Minnesota Department of Health Mortuary Science Section
• New York Bureau of Funeral Directing, New York State Department of Health
• Oregon State Mortuary and Cemetery Board
• Virginia Board of Funeral Directors and Embalmers

“State regulatory agencies with good consumer information fulfill their state mandates to serve the interests of the public,” said Joshua Slocum, FCA’s Executive Director.  “Consumer information can make a huge difference in the lives of the bereaved who must often quickly choose among funeral services where costs can range from under $2,000 to more than $20,000, and who sometimes have legitimate complaints about these services,” he added.

Researchers from FCA and CFA graded state regulatory agencies using six criteria that included not only the content of information but also its presentation – most importantly, whether a link to consumer information was prominently featured on the home page of the agency’s website.  The content included a link to the Federal Trade Commission’s (FTC) excellent consumer guide, “Shopping for Funeral Services”

FCA and CFA also make available information to consumers through a pamphlet, “Planning a Funeral: 5 Key Tips”

In part because of the historic failure of many state regulatory agencies to recognize their responsibilities to consumers, the FTC has had to establish standards of conduct for the industry.  The FTC has done this mainly through the issuing and enforcing of its Funeral Rule.  Among other consumer protections, the Funeral Rule requires funeral homes to give consumers a General Price List of services during in-person arrangements conferences. The federal agency is now considering whether to update and modernize the Funeral Rule, including requiring funeral homes to post their price lists on their websites.

“Posted price lists would greatly assist bereaved consumers who now must physically visit funeral homes to obtain the price lists,” noted Stephen Brobeck, a CFA senior fellow.  “An updated Funeral Rule, coupled with improved consumer information from state agencies, would significantly benefit consumers who face costly choices at a time when many must cope emotionally with the death of a loved one,” he added.

States and the District of Columbia regulatory agencies received the following grades for their consumer information.  (Hawaii was excluded because it has no agency.)

Contacts:
Josh Slocum, FCA, Inc., 802-865-8300
Stephen Brobeck, CFA, sbrobeck@consumerfed.org

The post New Report Concludes that 33 State Funeral Service Regulators Provide Poor or No Useful Information to Consumers While Seven State Agencies Make Available Excellent Information appeared first on Consumer Federation of America.

These are two findings of an online consumer knowledge survey of 2,009 representative Americans commissioned by the Funeral Consumers Alliance (FCA) and Consumer Federation of America (CFA), and undertaken by ENGINE (formerly ORC International) on November 18-22, 2020.

“It is understandable that consumers who rarely purchase funeral services are not aware of well-established consumer protections,” said Josh Slocum, FCA’s Executive Director.

Free Pamphlet Provides Key Money-Saving Tips

To better inform consumers about their funeral rights, FCA and CFA are releasing a free pamphlet titled, Planning a Funeral: 5 Key Tips.  These tips include:

• Talk It Out Ahead of Time: Tough decisions about cremation or burial, venue of any memorial services, and related issues can be resolved without the pressures of immediate disposition of the body.
• Know Your Rights: The Federal Trade Commission’s Funeral Rule provides specific rights including an itemized price list, a written price estimate, and acceptance of your casket without a handling fee.
• Shop Around: Comparing prices at area funeral homes can lower costs by as much as 50 percent.
• Keep It Simple: The typical cost of a full funeral is $7,360, according to the National Funeral Directors Association, yet in most areas a cremation without extras can cost only $800-$1,200
• Avoid Expensive Extras: Most funeral homes offer dozens of service options, including sealed caskets, that may not provide you with value.

“Planning a funeral ahead of time can reduce costs by well over 50 percent and provide peace of mind,” said Stephen Brobeck, a CFA senior fellow.

The pamphlet is being distributed by FCA’s local and state affiliates.  It is also available for free online on either the FCA or CFA website.

Survey Findings Support Online Price Disclosure

The Federal Trade Commission is currently considering whether to revise its Funeral Rule.  FCA and CFA, among other groups, have argued that this revision should include requiring funeral homes to post their price lists online.

“Online prices could be easily compared, obviating the need to visit a number of funeral homes to collect price lists,” said Slocum.  “One cannot expect a recently bereaved family under pressure to make quick decisions to take the time and effort to visit several funeral homes,” he added.

The value of easier access to funeral home price lists was suggested by the FCA/CFA survey finding that only 17 percent of the 2,009 respondents correctly thought that direct cremation of the body is usually available for less than $1,200.  Fifteen percent thought the low price was usually above $2,400, and 38 percent said they did not know.

“Online price lists would dramatically increase a consumer’s ability to cut funeral costs,” said Brobeck.  “Online posting of an existing price list would cost funeral homes a trivial amount,” he added.

Older Persons are Least Informed about Funeral Rights

Only 15 percent of those 65 years and older know that funeral homes are required to provide price quotes over the phone and a price list at the home, and 60 percent said they did not know the answer to this question.  In contrast, nearly 30 percent of those aged 18-54 knew the correct answer.  Moreover, 76% of older persons surveyed said they did not know whether funeral homes were required to accept a casket provided by the bereaved without charge.

“We were surprised to learn that older persons are least aware of their funeral rights because they are the age group most likely to confront funeral-related decisions,” said Slocum.

The survey data and method are available on request to any member of the news media.

To download the pamphlet, click here.

Contacts:
Josh Slocum, FCA, Inc., 802-865-8300
Stephen Brobeck, CFA, sbrobeck@consumerfed.org

The post National Survey Shows That Most Consumers Do Not Understand Their Funeral Rights appeared first on Consumer Federation of America.

The post CFA Urges FTC to Update the Funeral Rule to Better Protect Consumers and Promote Competition appeared first on Consumer Federation of America.

• For the basic services fee, the $1,835 median price of price hiders was 36 percent higher than the $1,348 median price of price posters.
• For direct cremation, the $1,695 median price of price hiders was 31 percent higher than the $1295 median price of price posters.
• For immediate burial without casket, the $2,595 median price of price hiders was 37 percent higher than the $1,900 median price of price posters.

“Many funeral homes charging high prices use a legal loophole to hide these prices from the public,” said Josh Slocum, FCA’s Executive Director.  “The California legislature should close this loophole so that consumers can comparison shop among all funeral homes,” he added.

The 24 Dignity Memorial funeral homes in the study, none of whom posted their prices, charged the highest prices of all.  Dignity Memorial is a brand owned by the Service Corporation International (SCI).

• For the basic service fee, the $1,995 median price of Dignity Memorial homes was 48 percent higher than the $1,348 median price of price posters.
• For direct cremation, the $1,695 median price of Dignity Memorial homes was 31 percent higher than the $1,295 median price of price posters.
• For immediate burial without casket, the $3,095 median price of Dignity Memorial homes was 63 percent higher than the $1,900 median price of price posters.

“In our national research, we have not found one Dignity Memorial funeral home that posts prices,” noted Stephen Brobeck, a CFA senior fellow.  “And throughout the nation, we have also found that they tend to charge higher prices,” he added.

The research also found that 28 funeral homes studied apparently do not comply with California or Federal law (six of these are not included in the final price analysis of 120 funeral homes; their “price lists” did not provide the basic data necessary).   For example, fourteen homes failed to disclose to cremation consumers that they may choose an “alternative container” for direct cremation.  Five funeral homes failed to offer customers the option of buying a simple “immediate burial” without ceremony.  And five homes provided only package prices without itemized options.

The research showed not only significant price differences between price disclosers and price hiders but also a huge range of prices in the six areas studied – City of Sacramento, City of San Francisco, Alameda County, City of Los Angeles, Orange County, and City of San Diego.  Prices ranged from $250 to $4,370 for a basic services fee, from $525 to $4,115 for direction cremation, and from $495 to $4,715 for immediate burial without casket.

“Prices vary so greatly that consumers can potentially save thousands of dollars on a funeral by shopping around,” said Alegra Howard, Consumer Action’s policy advocate.

“It’s unfortunate that consumers need to comparison shop during an already stressful and upsetting time in order to avoid being fleeced. However, we recommend that consumers do just that, and begin their search with funeral homes that prominently post prices,” she added.

The report emphasizes that prominent price posting by funeral homes is especially important to consumers who are bereaved, face an unexpected death, and/or are required to quickly select a funeral home because a hospital is urging them to do so.

“It is unrealistic to expect families confronted with a sudden death to visit a number of funeral homes to pick up paper price lists,” said FCA’s executive director, Josh Slocum. “When prices are prominently posted online, it takes relatively little time for consumers to learn more about costs related to funeral homes they are considering.”

This research follows up a report on price posting by the 203 funeral homes in the six major areas noted above.  That research found that 45 percent of these funeral homes prominently disclosed their prices but 25 percent did not.  This latest research collected information from the price disclosers online and from the price hiders by calling and requested a General Price List.  Most but not all of the hiders emailed their price list in response to a phone call.

Contact:

Josh Slocum, FCA, Inc., 802-865-8300

Steve Brobeck, CFA, sbrobeck@consumerfed.org

The post California Funeral Homes Hiding Prices Charge More than Homes Prominently Disclosing Prices appeared first on Consumer Federation of America.

The post The Relationship between Funeral Price Disclosures and Funeral Prices: A California Case Study appeared first on Consumer Federation of America.

“We urge California legislators to close the legal loophole so that all funeral homes are required to post prices online,” said Josh Slocum, FCA’s Executive Director.  “This price disclosure greatly helps consumers plan for funerals that they can afford,” he added.  According to 2017 National Funeral Directors Association data, the average cost of a full-service conventional funeral is $7,360.

Funeral homes in some areas surveyed were more likely than those in other areas to disclose prices prominently.  For example, FCA and CFA judged that 73 percent of the websites in the City of Los Angeles have prominent disclosures, but only 27 percent in Alameda County have prominent disclosures.  “We commend the many California funeral homes that prominently disclose their price lists,” said Joe Ridout of Consumer Action.  “These homes honor the spirit as well as the letter of the law,” he added.

Most of the 33 funeral homes surveys that are affiliated with the nation’s largest funeral home company – Service Corporation International (SCI) operating under the brand name Dignity Memorial – refused to disclose prices online then largely ignored consumer requests for these prices.  California law allows compliance by listing types of service and merchandise with a note that says, “A General Price List is available on request.”  When, as a consumer, we requested the price list by email, we received only two responses.  One Dignity Memorial employee provided the price lists for four Orange County funeral homes while one other employee provided the price list of one Los Angeles home.  Three-fifths of the funeral homes using the loophole were affiliated with Dignity Memorial.

“In all of our research nationally, we have yet to find one Dignity Memorial funeral home that posts prices online,” said Stephen Brobeck, a CFA senior fellow.  “It appears to us that their company is leading industry resistance to price-posting,” he added.  Research by FCA and CFA nationally has suggested that Dignity Memorial funeral homes tend to charge higher prices for the same services than do other funeral homes.

The report also identified six funeral homes that appear to violate the law by neither posting prices nor utilizing the law’s loophole.

The report urges consumers seeking funeral services to pay careful attention to whether a home prominently discloses prices.  “Those funeral homes that disclose prices prominently are the ones that are likely to care the most about helping customers control their funeral costs,” said Jean Okuye, President of FCA of California.

Since 1984, the Federal Trade Commission (FTC) has required all funeral homes in the nation to give consumers a printed, itemized list of prices and services, called a General Price List (GPL), before the funeral arrangements are discussed.  In 2013, California updated this requirement for state funeral homes by requiring them to post prices online.  However, faced with intense industry lobbying, the legislature created a loophole that allowed funeral homes to comply with the law by listing 16 types of services and merchandise then adding the note about a price list being available on request.  The law did not define what this availability meant, nor did it require homes using the loophole to make available their price list in response to phone or email requests.

In their research, FCA and CFA distinguished funeral homes that prominently disclose price lists and those that only visibly disclose these prices.  We considered a disclosure to be prominent when the site posted the price list on the visible screen of the home page or as a dropdown on a related link.  Two researchers agreed on these criteria, independently judged whether each website prominently or visibly disclosed prices, and resolved any differences in judgment.  While this research was undertaken over the summer, those websites with no or hidden disclosures were checked in the past week.

The 203 websites include all those of funeral homes listed by the California Cemetery and Funeral Bureau, the state regulator for the funeral and cemetery industries.  They include the active websites for all listed funeral homes in the City of Sacramento, Alameda County (East Bay area including Oakland), City of San Francisco, City of Los Angeles, Orange County, and City of San Diego.  The Bureau lists 1,086 funeral establishments in the state.

The post New Research Reveals That One Quarter of California Funeral Homes in Urban Areas Use Loophole in State Law to Hide Prices appeared first on Consumer Federation of America.

The report identified the 45 percent of funeral homes surveyed that prominently display their complete price and service lists.

The post Hidden Funeral Prices: An Evaluation of California Funeral Home Price Disclosure and Lack of Disclosure appeared first on Consumer Federation of America.

The Funeral Consumers Alliance of California, the Funeral Consumers Alliance (FCA), Consumer Action, and the Consumer Federation of America (CFA) have written to the California Funeral and Cemetery Bureau urging the agency to investigate this issue and require compliance with the law.  When the groups first surveyed compliance earlier this year, 23 funeral homes appeared to be violating the law.  Knowledge of the consumer survey has apparently encouraged most of these homes to begin listing prices.

“It couldn’t be easier for a funeral home to comply with state law,” said FCA Executive Director Josh Slocum.  “All funeral homes with websites have the capability to easily add their General Price List to the site.”  Since 1984, the Federal Trade Commission has required all funeral homes to have available, for personal distribution, itemized price lists (called “General Price Lists”).

Forty-four Orange County funeral homes posted their General Price lists (see attached list).  And 11 funeral homes listed the 16 categories of service with a note about the availability of their price list.  “We commend the 44 funeral homes that post prices,” said Joe Ridout of Consumer Action.  “These firms help Orange County consumers more easily shop for relatively expensive funeral services,” he added.

All of the 11 funeral homes that do not post prices, but appear to comply with the law, are owned by Dignity Memorial, the nation’s largest chain of funeral homes. Dignity Memorial is a brand name of Service Corporation International (SCI), which is traded on Wall Street.  None of the several hundred Dignity Memorial funeral homes researched by FCA and CFA nationwide post prices online. FCA/CFA surveys show that Dignity-owned funeral homes are substantially more expensive than independent, local firms.

The average cost of a full-service funeral is more than $7,000, and surveys by CFA, FCA, and FCA affiliates reveal that there is wide variation in prices among funeral homes.  Even simple, direct cremations can range in price from about $600 to more than $3,000. In addition to the financial burden, most consumers who purchase a funeral must do so under time pressure and in a state of emotional distress.  “Ensuring that consumers could access price information online would ease the time and emotional pressures that they face,” said Jean Okuye, President of the Funeral Consumers Alliance of California.

FCA and CFA have petitioned the Federal Trade Commission to update the Funeral Rule to require posting of required price lists on their websites.  In the meantime, they have begun to research funeral price posting in many cities and counties throughout the U.S. with particular focus on California.  “Consumers who have suffered the unexpected death of a loved one cannot be expected to drive around to funeral homes to collect price lists,” said CFA senior fellow Stephen Brobeck.  “It is very easy for funeral homes to ease this consumer burden by posting their existing price list,” he added.

Survey Results

The post Six Orange County Funeral Homes Appear To Violate State Law appeared first on Consumer Federation of America.

“These funeral homes help Baltimore area consumers shop for relatively expensive services by fully disclosing all charges on their websites,” said Marceline White, Executive Director of the Maryland Consumer Rights Coalition.

The Federal Trade Commission’s Funeral Home Rule requires funeral homes to make available General Price Lists to consumers who ask.  However, this Rule was issued in 1984, before the existence of the Internet and websites.  “Now that the internet has become the consumers best resource for comparative prices, the FTC Funeral Rule needs to be modernized by requiring funeral homes to post all of their prices on their websites,” said Josh Slocum, President of the Funeral Consumers Alliance.

The good news: 13 of the 45 funeral homes with websites inside the Baltimore Beltway (Route 695) have decided to post their price lists voluntarily.

In addition to calling on the FTC to require website price disclosures by funeral home, these consumer groups will be examining disclosure practices in other parts of the country.The FTC’s Funeral Rule requires price disclosures because funeral prices can be very high – averaging more than $7,000 nationwide.  Even simple cremations can sometimes cost thousands. Compounding these high costs is the fact that most consumers must make this complex purchase under time pressure and in a state of emotional distress.  “Consumers who have suffered a loss and must quickly choose a funeral home benefit greatly by the availability of online price lists,” said Stephen Brobeck, a senior fellow at the Consumer Federation of America.

Contacts:

Josh Slocum, FCA, josh@funerals.org

Barbara Blaylock, FCAME, info@mdfunerals.org

Marceline White, MCRC, marceline@marylandconsumers.org

Steve Brobeck, CFA, sbrobeck@consumerfed.org

The post Consumer Groups Applaud 13 Baltimore Funeral Homes for Posting Prices Online appeared first on Consumer Federation of America.

“In an era when the large majority of consumers use the Internet to shop, the FTC should extend the Funeral Rule disclosure requirement to funeral homes with websites,” said Josh Slocum, president of the Funeral Consumers Alliance. “The cost of posting an existing price list is insignificant,” he added.

Because of the failure of the FTC to act, California requires funeral homes to post their General Price Lists online, or to list 16 categories of funeral-related services on offer, noting that a price list is available on request. Not surprisingly, then, a survey of 25 Sacramento funeral homes with websites revealed that 18 (72%) posted their General Price List.

“In the absence of FTC action, states should consider requiring funeral home price disclosure on websites,” said FCA’s Slocum. “The California experience has shown that this posting places no burden on funeral homes and enhances market efficiency by facilitating price comparison,” he added.

Consumers strongly support this online price disclosure. In a 2017 phone survey conducted for CFA and FCA by ORC International, 79 percent of 1,000 representative Americans favored a requirement that funeral homes with websites disclose online the same price information they are required to make available in person.

Survey Focuses on Small- and Medium-Sized State Capitals

FCA and CFA surveyed 211 funeral homes within a 10-mile radius of 25 small- and medium-sized capital cities. Of these homes, 193 had active websites. The cities are Augusta ME, Baton Rouge LA, Bismarck ND, Boise ID, Charleston WV, Cheyenne WY, Concord NH, Des Moines IA, Dover DE, Frankfort KY, Harrisburg PA, Helena MT, Jackson MS, Jefferson City MO, Lansing MI, Montpelier VT, Olympia WA, Pierre SD, St. Paul MN, Salem OR, Salt Lake City UT, Santa Fe NM, Springfield IL, Tallahassee FL, and Topeka KS.

Funeral homes in some cities were notable for their refusal to post prices on their websites. None of 17 funeral homes with websites in Harrisburg PA posted prices. Nor did any of 14 homes in Baton Rouge LA or any of 10 homes in Topeka KS.

On the other hand, 4 of 7 funeral homes in Springfield IL posted prices, as did 3 of 5 homes in Olympia WA, 4 of 8 homes in Des Moines IA, and the only home in Montpelier VT.

Why Price Disclosure is Critically Important for Consumers of Funeral Services

The FCA/CFA report includes a quote, from the 1978 report recommending that the FTC require price disclosure, which contains a compelling argument for the Funeral Role that is as valid today as it was then.

• Grief-stricken, consumers are often dependent and disoriented.
• Consumers are under severe time pressure to make a decision about funeral arrangements.
• Consumers typically have no previous experience purchasing funeral services.
• As a result of these factors, consumers can easily make poor decisions about the funeral home selected and the specific services purchased.

“With easily available price information, consumers who today spend an average of more than $7,000 on a funeral could often lower that figure considerably,” said Stephen Brobeck, Executive Director of the Consumer Federation of America. “And just the availability of this information online would tend to restrain prices for all funeral services,” he added.

FCA and CFA recommend that consumers select a funeral home well in advance of an imminent death. In visiting homes, they should request a General Price List. If the list is not made available, FCA and CFA recommend purchasing services at another funeral home.

Contact: Joshua Slocum, FCA, 802-865-8300; Jack Gillis, CFA, 202-737-0766

FCA is a nonprofit federation of 70 local consumer education groups who help Americans learn about their legal rights and options in the funeral purchase. Founded in 1963 to give grieving consumers a voice, FCA is the only national charity dedicated to ending deceptive practices in the funeral sales transaction.

The Consumer Federation of America is a nonprofit association of more than 250 consumer groups that was founded in 1968 to advance the consumer interest through research, advocacy, and education.

The post Few Funeral Homes in 25 Cities Disclose Useful Price Information on Their Websites appeared first on Consumer Federation of America.

This report, prepared by Funeral Consumers Alliance and CFA, researched the websites of all funeral homes, found by Google search, in and within a 10-mile radius of 26 capital cities. We chose 25 small to mid-sized capital cities to study. In addition, we included Sacramento, California as a comparison. California is the only state that requires funeral homes to post their General Price Lists online, or, if they choose not to, to list 16 categories of funeral-related services on offer and a note that a price list is available on request. The results from Sacramento underscore the effectiveness of this law, enacted in 2013. The contrast between Sacramento and the other 25 capital cities is striking.

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The post A Needle in a Haystack – Finding Funeral Prices Online in 26 State Capitals appeared first on Consumer Federation of America.

“Consumers charged high prices undisclosed online are not treated with dignity by the many funeral homes operated by Dignity Memorial,” said Josh Slocum, Executive Director of the Funeral Consumers Alliance.  “Consumers would be wise to patronize those funeral homes that allow easy price comparisons.  And the Federal Trade Commission should facilitate this comparative shopping by extending their required price disclosures to funeral home websites.”

Consumers strongly support this online price disclosure.  In a February 2017 survey of 1,004 representative adult Americans conducted for FCA and CFA by ORC International, 78 percent of respondents agreed, and only 18 percent disagreed, that funeral homes should be required to make the price information, which they currently are required to disclose in person and over the phone, available on their websites as well.  The survey was by cell phone and landline and has a margin of error of plus or minus three percentage points.

SCI is the fastest growing provider of funerals and other death care products.  Having absorbed several of the largest funeral home companies in the past decade, it now operates more than 1,000 funeral homes and cemeteries in the U.S. with an estimated 16 percent of total industry revenues.

SCI Funeral Homes Charge Higher Prices Than Other Funeral Homes

The FCA-CFA report is based on research of 35 SCI funeral homes and 103 other independent funeral homes in nine major metropolitan regions.  The research tabulated the prices of three types of service found at every funeral home – simple cremation, simple burial, and a full-service traditional funeral with a viewing of the body.

The research found that the SCI funeral homes charged far higher median prices than other funeral homes in the nine areas (Atlanta, Denver, D.C., Minneapolis, Philadelphia, Princeton, Seattle, Southern California, and Tucson), as the table below shows.

SCI Funeral Homes Refuse to Disclose Prices on Their Websites.

The FCA-CFA report revealed that no SCI funeral homes disclosed prices on their websites.  This was true not only for the 35 SCI funeral homes in the study but also for all others operated by SCI.

Moreover, a comparison of the prices of SCI funeral homes with those of funeral homes that did disclose prices, revealed significant price differences.  The median prices of the SCI funeral homes, compared to those with price disclosures, were 30 percent higher for simple cremation, 32 percent higher for simple burial, and 50 percent higher for a full-service funeral.

“SCI funeral homes can maintain high prices in part because they fail to disclose these prices,” said Stephen Brobeck, Executive Director of the Consumer Federation of America.  “In today’s marketplace, most consumers begin shopping for expensive products by searching online.  SCI’s refusal to disclose prices on their websites makes comparison shopping very difficult.”

FTC Can and Should Act to Modernize Its Funeral Rule by Requiring Website Price Disclosures

In 1984, the FTC issued a Funeral Rule that required funeral homes to maintain a price list of services that is handed to prospective customers and to provide this price information by phone.  The basis for this rule is that funeral services are expensive products, purchased infrequently at times of emotional stress, which did not allow comparison shopping.

These disclosure requirements, while still essential, are of diminishing practical use to consumers because they conduct most product searches online.  The Pew Research Center found, in a 2016 survey, that 82 percent of Americans examine online review and ratings when buying a product or service for the first time.  A growing number of funeral homes — and a very large majority now have websites — disclose their prices online.  But SCI, which makes available a website template to all their Dignity Memorial Funeral homes, refuses to disclose any prices on the websites of these funeral homes.

The FTC is required in 2018 to review the Funeral Rule.  “It would be a dereliction of duty for the FTC to fail to extend their price disclosures to funeral homes websites,” said FCA’s Slocum.  FCA and CFA will be communicating the results of its survey to FTC commissioners and staff as well as to members of Congress, such as Rep. Bobby Rush (D-IL), who are concerned about this issue.

Contact: Josh Slocum, FCA, 802-865-8300; Jack Gillis, CFA, 202-737-0766

FCA is nonprofit organization founded in 1963 to protect the consumer’s right to choose a meaningful and affordable funeral.  More than 70 local educational groups are included in FCA’s national federation.

The Consumer Federation of America is a nonprofit association of more than 250 consumer groups that was founded in 1968 to advance the consumer interest through research, advocacy, and education.                                          

The post Nation’s Largest Funeral Home Company Charges High Prices and Refuses to Disclose These Prices On Their Websites appeared first on Consumer Federation of America.

SCI says that its success results mainly from rationalizing a previously inefficient “death-care” industry.  However, this rationalization has emphasized anti-consumer practices including relatively high prices that it fails to disclose adequately, aggressive sales that push customers to upgrade products purchased, and sloppy service that have led to court settlements as large as $80 million.

The post Death with Dignity? A Report on SCI/Dignity Memorial High Prices and Refusal to Disclose These Prices appeared first on Consumer Federation of America.

The post Cremation Services: Highly Variable and Misleading Pricing, Lack of Disclosure, and Violation of Federal Rules appeared first on Consumer Federation of America.

Moreover, 22 percent are advertising prices for simple cremations that don’t include the cremation itself. Consumers at these funeral homes will face unexpected fees ranging from $200 to $595 above the advertised cost for “Direct Cremation.”

These anti-consumer practices affect hundreds of thousands of American families each year. The rate of cremation equaled the rate of burial for the first time in 2015. About 1.6 million American families will choose cremation for a loved one who dies this year.

The new report supplements an October 2015 survey that found only 25 percent of funeral homes fully disclosed their prices online. In July of 2016, Funeral Consumers Alliance (FCA) and the Consumer Federation of America (CFA) formally requested that the FTC re-open the Funeral Rule for amendments, including a new requirement for funeral homes to publish their complete prices on their websites.  Today, FCA and CFA are calling on the FTC to ensure that funeral homes obey existing law and also expand this law to also eliminate egregious practices, such as the failure of some homes to include the cost of the cremation itself in the price of cremation services.

“Since 1984, funeral homes have been required to tell customers they have the right to buy a simple, no-frills cremation, and that they have the right to purchase a container or casket from outside the funeral home,” said Joshua Slocum, Executive Director of Funeral Consumers Alliance. “We found a significant minority of businesses that fail to alert consumers to these options, depriving grieving customers of the ability to control costs through free choice.”

Cremation Prices Vary Substantially

FCA and CFA analyzed 142 price lists from funeral homes in 10 metropolitan regions. Researchers looked for the FTC-required disclosures and prices for Direct Cremations:

-The price of Direct Cremation when the customer supplies their own casket or cardboard “alternative container” to hold the body prior to cremation, such as a homemade casket or a container bought from a third-party retailer

-The price of Direct Cremation when the customer buys the funeral home’s least-expensive alternative container

Researchers also visited the websites of these same funeral homes.  In every metropolitan region, prices for the same Direct Cremation varied so widely it is clear how important consistent and accurate price disclosures are for consumer families.

“This extreme price variation provides compelling evidence of the need for effective price disclosure,” noted Stephen Brobeck, CFA’s Executive Director.  “Accurate price disclosure on all funeral home websites would certainly restrain those homes that clearly are gouging consumers today,” he added.

Some Funeral Homes Violate Current FTC Funeral Rule

While all surveyed funeral homes listed a price for Direct Cremation, more than 20 percent failed to list prices and options for consumers who buy an outside casket or container. Most often, these funeral homes offered one price with the container included, directly contradicting the Funeral Rule’s requirement to “unbundle” merchandise and services.

Some Funeral Homes Exploit Funeral Home Loophole to Disclose a Cremation Price That Fails to Include the Cremation of the Body

Remarkably, the report also found that 31 of 142 funeral homes (22 percent) are advertising a price for Direct Cremation that does not include the cremation of the body. Many funeral homes use third-party crematories. These typically charge $250 to $400 to cremate a body, a cost that is passed along to consumers. But it is inherently deceptive to list a Direct Cremation service for, say, $1,500, and then surprise the client family with an additional charge of many hundreds of dollars for the very service they thought they were buying.

“Countless consumers have told us they were baffled at how a funeral home can advertise a price for a simple cremation that doesn’t actually include the cremation,” FCA’s Josh Slocum said. “They ask a good question: What am I paying for in this Direct Cremation if it doesn’t include cremation?”

The Funeral Rule does not require funeral homes to include what are known as “cash advance” charges within their Direct Cremation fee. Instead, funeral homes may list them separately, and there is no requirement to list them directly next to the advertised price for Direct Cremation. This led to an unintended consequence:  Too many funeral homes omit this fee from their advertised charge, making Direct Cremation prices seem artificially low. As part of our request to the FTC to amend the Funeral Rule, FCA and CFA urge the Commission to close this loophole.

Contact: Josh Slocum, FCA, 802-865-8300; Jack Gillis, CFA, 202-737-0766

FCA is nonprofit organization founded in 1963 to protect the consumer’s right to choose a meaningful and affordable funeral.  More than 70 local educational groups are included in FCA’s national federation.

CFA is a nonprofit association of more than 250 pro-consumer groups that was established in 1968 to advance the consumer interest through research, advocacy, and education.

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The post Petition to FTC to Require Online Funeral Price Disclosure appeared first on Consumer Federation of America.

We find it fitting that we are submitting this petition on Amazon’s “Prime Day,” sometimes called the “Cyber Monday of the summer.” Prime Day serves as a reminder that we are now firmly a nation of online shoppers. Some consumers have compared prices online for months and have waited until today to buy their flat screen TV, e-reader for their kids, or shiny new kitchen appliance. Millions of Americans will go online before midnight tonight and view historical pricing data, compare similar products, and score a great deal.

However, the most vulnerable consumers in the marketplace must spend thousands of dollars on a funeral and still cannot compare prices online. Today, the Funeral Consumers Alliance and the Consumer Federation of America urged the FTC to change the Funeral Rule so consumers can make an informed decision on one of the largest purchases they will ever make.

The Funeral Rule has protected consumers for over 30 years by requiring funeral homes to disclose price information in a meaningful fashion. The Rule was enacted to provide basic price information for vulnerable consumers purchasing funeral services.  This information is vital to protect consumers. Many Americans cannot afford the average funeral as the market functions today, and between now and 2019, consumers will likely spend at least $50 billion on funeral services.

However, those protections are limited to face-to-face or telephone disclosures.  The Rule does not apply to the Internet.  Thus, it is almost impossible for consumers to secure price information online. The Funeral Rule no longer reflects how Americans access information on a daily basis and to make almost every large purchase.

“The Federal Trade Commission should update antiquated disclosure rules developed in the pre-Internet 1980s,” said Josh Slocum, Executive Director of Funeral Consumers Alliance. “Almost all funeral home websites feature stories on how the funeral home has been providing caring, compassionate service since the days of the horse and buggy but nothing about how much it actually costs.”

The Funeral Rule currently mandates that any person who asks for a general price list, an itemized list of funeral products and services, be furnished with complete and accurate price information via telephone or in person, but not online. Today, the function of the telephone in the Funeral Rule has been augmented, if not supplanted by the Internet.

The petition makes a compelling case for online price disclosure, refutes common misconceptions about extending the Funeral Rule, and shows that consumers will be harmed if the FTC waits until 2019 to review the rule.

“In the 1980s, consumers were prepared to comparison shop by phone and even to visit funeral homes to collect price information, but commerce has been revolutionized because of the Internet.  In almost every other market information is just a click away and that intensifies competition, drives down prices and improves services.  Especially for such an expensive purchase by vulnerable consumers, quick access to price information is vital.  Consumers expect to get information online, which is why we undertook this survey and are urging the FTC to update the rule.” Stephen Brobeck, Executive Director of the Consumer Federation of America

“We hope that the FTC acts promptly upon our request,” says Slocum. “Grieving families don’t have time to wait.”

FCA is nonprofit organization founded in 1963 to protect the consumer’s right to choose a meaningful and affordable funeral.  More than 70 local educational groups are included in FCA’s national federation.

 The Consumer Federation of America is an association of more than 250 non-profit consumer groups that, since 1968, has sought to advance the consumer interest through research, education, and advocacy.

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