Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC charges Alabama funeral home with violations of its Funeral Rule, (Dec 4, 2013)

By Tobias J. Gillett, J.D., LL.M.

The FTC has filed a complaint in the federal district court in Montgomery, Alabama, alleging that Ross-Clayton Funeral Home, Inc. and its owners, David C. Ross, Jr. and Eleanor Lewis Dawkins, failed to provide consumers with a written casket price list prior to discussing caskets or showing them to the consumers, in violation of the FTC’s Funeral Rule (FTC v. Ross-Clayton Funeral Home, Inc., FTC File Nos. 132 3128 and X140007, Case No. 2:13-CV-00851).

According to the complaint, the defendants operate a funeral home in Montgomery, Alabama. The FTC’s Funeral Rule prohibits funeral providers from failing to show a printed or typewritten price list to persons who inquire in person about the offerings or prices of caskets or alternative containers, and requires that the list be offered upon beginning discussion of, but in any event before showing, caskets. The Rule is intended to provide consumers with sufficient information to decide what goods and services to purchase. The defendants’ failure to comply with this provision constituted an unfair or deceptive act or practice in violation of Section 5 of the FTC Act.

The FTC noted that the defendants declined to resolve their alleged violations through participation in the National Funeral Directors Association (NFDA)’s Funeral Rule Offenders Program, a three-year training program designed to increase compliance with the Rule. The FTC offers first-time offenders a chance to enter the program, and pay a sum less than the amount that the Commission would likely seek in a lawsuit, plus administrative fees to the NFDA, as an alternative to possible legal action. The FTC can seek civil penalties of up to $16,000 for each violation of the Rule.

The FTC has published guidance on complying with the Rule.

Companies: Ross-Clayton Funeral Home, Inc.

News: ConsumerProtection FederalTradeCommissionNews