Antitrust Law Daily Wrap Up, CONSUMER PROTECTION—S.D.N.Y.: New York funeral home settles FTC charges for Funeral Rule violations, (Jan 8, 2014)

By Linda O’Brien, J.D., LL.M.

A New York funeral home and its funeral director/owner have agreed to pay a $32,000 civil penalty to settle FTC charges that the funeral home violated the agency’s Funeral Rule. The consent decree also permanently prohibits the defendants from violating the Funeral Rule (U.S. v. Harrison Funeral Home, Inc., January 2, 2014, Roman, N.).

In May 2012, at the FTC’s request, the Department of Justice filed a complaint in a federal district court, against the Harrison Funeral Home in Harrison, New York, and John Balsamo. The FTC charged the defendants with failing to provide consumers with an itemized general price list at the beginning of any in person discussion about funeral arrangements, a casket price list at the beginning of any discussion about caskets, and an outer burial container price list at the beginning of any discussion about outer burial containers, as required by the Funeral Rule. The allegations were based on inspections by FTC staff posing as consumers seeking to make funeral arrangements. The FTC was seeking $80,000 in civil penalties.

The FTC conducts undercover inspections yearly to ensure that funeral homes are complying with the funeral regulations, which give consumers important rights when making funeral arrangements. The Funeral Rule, issued in 1984, requires funeral homes to provide consumers with itemized price lists at the start of any in-person discussions of funeral arrangements, caskets, and/or outer burial containers. The Rule also requires funeral homes to provide price information by telephone on request. It also prohibits funeral homes from requiring consumers to buy any item, such as a casket, as a condition of obtaining any other funeral good or service.

The case is No. 12 CV 3733.

Attorneys: Timothy P. Parlatore (Cutler & Parlatore, PLLC) for Harrison Funeral Home, Inc. and John Balsamo.

Companies: Harrison Funeral Home, Inc.

Cases: ConsumerProtection NewYorkNews FederalTradeCommissionNews