This section of our web site
is devoted to consumer information. It is our sincere hope that
this information will serve to educate families on what to expect
when making funeral arrangements, how the Federal Trade Commission
funeral rule is designed to protect consumers, and how to make
informed decisions at a very difficult time.
The Federal Trade Commission
Funeral Rule
Around 1985, the Federal Trade Commission Rule
was drafted in order to standardize the way funeral services,
and merchandise is purchased in the United States. The rule
is designed to protect consumers by requiring all funeral homes
to itemize their service charges and separate them from their
charges for merchandise (caskets, vaults, urns etc.) and accommodation
items (cemetery charges, minister’s stipends, flowers
etc.) Prior to the rule, most funeral homes included the charges
for their services with the casket selected. There are two basic
problems with this pricing system. The first is that not every
family wants to use all of the services a funeral home provides.
Some families may not want to have a public visitation, or use
all of the automobiles the funeral home offers etc. Under the
old system there was no way to make deductions for the items
of service a family did not require. Secondly, since the price
of the funeral service was predicated on the casket selected,
it was difficult for families to compare prices between funeral
homes. Most consumers can’t look at a casket and know
what material it is constructed from, which determines the price.
The Federal Trade Commission rule solves these problems by itemizing
all of the service charges and separating them from the merchandise.
According to the rule, the total cost of a funeral service is
broken down into three basic parts, Services, Facilities and
Automobiles; Merchandise; (Casket, Vault, Paper Products) and
Accommodation Items. There are also three documents, which every
funeral home must have, and share with the consumer. These consist
of, the General Price List, The Casket Price List and the Outer
Burial Container Price List
General
Price List
Under the funeral rule, every funeral home is required to have
a general price list. The general price list must include the
following categories. Basic Services of Funeral Director and
Staff; Transfer of Remains to Funeral Home; Embalming; Other
Preparation of the Body; Facilities Charges and Staff Services;
and Automotive Equipment. The Trade Commission does not regulate
what individual funeral homes charge for these categories. Therefore
there can be substantial differences in service charges between
funeral homes in the same area. The general price list must
also include a price range for caskets; vaults; cremation urns;
charges for paper products (register book, memorial folders
and acknowledgement cards). Also included on the price list
is the charge for Direct Cremations; Forwarding Remains to Another
Funeral Home; and Receiving Remains From Another Funeral Home.
A funeral home is required to give you a copy of their General
Price List for your retention any time funeral arrangements
are discussed in person. Funeral homes must also give you the
information on the price list over the phone.
Casket
Price List
Under the funeral rule, every funeral home is required to have
a casket price list. This list should include every casket the
funeral home offers for sale. The casket price list should list
the material the casket is constructed from (20 ga. Steel, 18
ga. Steel, Solid Oak, 32 oz. Copper etc.) the manufacturers
trade name and the type of interior (crepe or velvet) The funeral
home is not required to let you retain the casket price list,
but most funeral homes should let you keep a copy.
Outer
Burial Container Price List
Under the funeral rule, every funeral home is required to have
an outer burial container (Vault) price list. This list should
include the manufacturer, the material it is made from, and
the trade name (Monticello, Continental, Venetian etc.)
Price
Comparisons
The Federal Trade Commission Rule allows consumers to compare
prices between funeral homes due to the standardization of pricing
structure throughout the country. Obviously, price comparisons
must be done prior to need. As with any business or profession
the old adage, “you get what you pay for” does not
always hold true. The highest priced funeral home may not be
the best. The prices a funeral home charges should not be the
most important or only factor used to determine which firm to
place your trust in. Experience, honesty, professional skill,
facilities, and caring compassionate service should all be factored
in. In order to compare prices between funeral homes, you need
to consider the total price of the services and merchandise
you require. Some funeral homes will have a higher than normal
service charge but offer their merchandise at a lower price
than a competing firm. Others may be just the opposite with
a low service charge and higher merchandise charges. The best
way to compare prices is to select the specific type of funeral
service you are interested in (traditional funeral service;
funeral service with visitation the same day; traditional cremation
service; immediate cremation with memorial service; etc.) and
determine the price for those services. Next, select the merchandise
you are interested in, a specific casket; for example an 18
Ga. Steel Neopolitan Blue manufactured by Batesville Casket
Company; and a Venetian burial vault manufactured by Wilbert
Vault Company, or a Universal Urn, manufactured by Wilbert Vault
Company etc. and make a direct comparison of the exact services
and merchandise at another funeral home. This can be done in
person or over the phone. Accommodation items should also be
included in the total. These would include outside services
that a funeral home agrees to pay for you. These items would
include grave opening at the cemetery, minister, organist, vocalist
stipends, luncheon expense, flowers, obituary notices, monument
engraving etc. These items should be the same between firms
unless the funeral home charges a fee for cash advances.
Packages
Under the funeral rule, funeral homes can package services as
long as they itemize the individual charges on their price list.
Look at these closely. Sometimes the package price will be higher
than if you selected the items of service separately. This is
especially common with cremation packages. The funeral home
or cremation society may have an artificially low immediate
cremation price but if you add any type of service, graveside,
memorial etc. the price is higher than if you selected that
particular service from the general price list.
If you have questions about
any of the information presented here, please call or E-mail
Mike Phillips at the funeral home.
