- Funeral homes must provide pricing information in person and over the phone under federal regulation.
- But the rule, adopted in 1984, didn't account for the dawn of the internet age.
- Now, the Federal Trade Commission is looking to broaden transparency for funeral pricing.
Funeral homes may have to disclose their prices online, as the federal government works to crack down on business practices that may exploit grieving families.
The Federal Trade Commission is considering an update to a federal rule that forces funeral homes to disclose prices in person and over the phone, the New York Times reported. Adopted in 1984, the rule did not account for the dawn of the internet age, and has allowed for funeral homes to skirt regulations by communicating with customers via text and email.
"People are at their most vulnerable when they're grieving," Lina M. Khan, chair of the Federal Trade Commission, told the Times. "Funeral providers are not required to list prices on their websites."
The FTC is considering the change after winning a civil lawsuit against a funeral home in Fort Lauderdale, Florida, where the government accused the business of "bait-and-switch" pricing tactics, going so far as to threaten to keep loved ones' remains to force grieving families to pay, the Times reported.
The government reached a settlement with Legacy Cremation Services this month, according to the Times, including a $257,000 fine against the company and a promise from the funeral home to include important details on its website.
"Lying to consumers about critical information including price and location of services when they are dealing with the loss of a loved one is outrageous and illegal," Samuel Levine, director of the FTC's bureau of consumer protection, told the Times in a statement.
In a statement to the Times, funeral home owner Anthony Joseph Damiano said Legacy Cremation Services "never intended to mislead" customers, adding the company would update its website to comply with the settlement.
The lawsuit and resulting settlement have begun a new push within the federal government for transparency around funeral and cremation prices, which tend to exceed $7,000, according to the Times. Additionally, many graveyards require bodies to be placed in coffin containers, which can add thousands on top of the already expensive funeral viewings and burials.
According to the FTC, less than a quarter of all funeral homes provide full price lists on their websites, and many provide little to no pricing information.
Now, the commission is rethinking its rules around transparency, with an eye toward bringing the funeral business into modern times.
"In the internet era, it's hard to see why anyone should have to physically visit or call multiple funeral homes just to compare prices," Khan told the Times in October.