The Federal Trade Commission (FTC) recently released its report, “Calling for Information About Funeral Pricing: An FTC Staff Review of the Consumer Experience,” based on undercover calls that were previously made in 2023 to 278 funeral providers. This report provides greater detail into the findings from the FTC’s first undercover phone sweep, highlighting compliance challenges that were discovered.
Some Key Findings from the Report – The Report focused on several areas, identified below, and a provided data matrix on all the calls made during the telephone sweep. The FTC data compared calls made during business hours as well as after business hours. The Report also provided an explanation as to how they selected the funeral providers and how the calls were made. Some of the findings that were shared include:
- Challenges Reaching Funeral Providers for Pricing Over the Phone:
- 69% of funeral providers required multiple calls or did not provide complete pricing information during the first contact.
- Only 37% of providers responded to after-hours inquiries on the first attempt.
- Information Provided During Phone Calls:
- 33.5% quoted package prices without itemizing components.
- Some providers gave estimates or ranges rather than definitive prices, with discrepancies found in 37 cases.
- Many providers only disclosed fees for death certificates, flowers, or permits after specific prompting.
- Discussion Regarding Electronic Price Information:
- 43 providers referred callers to websites, and 67 offered to email price lists, showing a shift toward digital transparency.
Compliance and Impact
It is important to know that this telephone sweep was part of the Commission’s consideration on whether to propose amendments to the Funeral Rule. As part of the FTC’s consideration, the Commission staff sought to test whether funeral providers are currently giving out price information over the phone, how easy it was for consumers to obtain that information, and the clarity and comprehensiveness of the information provided.
To that end, Commission staff placed and reviewed undercover calls to 278 randomly selected funeral providers from around the country, to recreate the typical consumer experience. As stated by the FTC Commission in this report, “The results of staff’s review suggest that these consumers may be unable to obtain price information via a phone call as quickly as they may need it or when they need price information outside of the funeral provider’s business hours. For consumers grieving and facing time constraints, phone calls can be a less reliable, and less accurate option to obtain price information compared to reviewing a copy of a price list.”
The FTC’s findings emphasize the critical need for adherence to the Funeral Rule, and the likely update to the Funeral Rule, which mandates accurate, itemized pricing over the phone and prohibits requiring in-person visits for such information. Keep in mind, that non-compliance risks penalties of up to $51,744 per violation.
ICCFA Recommendations for Members
To ensure compliance with the Funeral Rule and deliver exceptional service, ICCFA encourages members to:
- Ensure Transparent Pricing: Provide clear, itemized pricing of your General Price Lists (GPLs) over the phone.
- Leverage Technology: If you offer GPLs online or via email, remember that you must still answer inquiries and provide complete pricing over the phone.
- Enhance After-Hours Access: Consider developing protocols to provide basic pricing information outside regular business hours. Please note that you are not required to provide pricing after-hours if that is your normal practice; but your practice must be consistent.
- Train Your Team: Equip staff with knowledge of the Funeral Rule and best practices to improve compliance and transparency.
For further details, you can read the full FTC report here.
The ICCFA will be addressing this in more detail during the Irwin W. Shipper Legislative Session & Reception on Friday, May 2nd, during the 2025 ICCFA Experience in Las Vegas.
The ICCFA is here to support you in implementing these practices. Please get in touch with us with questions or for additional resources. Together, we can continue setting the standard for professionalism and service excellence.