Pub. 1 2022 Issue 4

FTC to Move Forward with Rulemaking Process to Modernize the Funeral Rule The commissioners of the Federal Trade Commission voted unanimously in favor of retaining the Funeral Rule and issuing an Advance Notice of Proposed Rulemaking seeking comment on potential updates to modernize the rule, including improvements to the public accessibility of funeral home price information. The Commission also approved the issuance of a staff report that summarizes the results of their review of almost 200 funeral provider websites. NFDA ensured the perspective of funeral service was heard loud and clear. President Jack Mitchell and General Counsel Chris Farmer spoke on your behalf, commenting on the issue of the FTC’s stated goal of modernizing certain aspects of the Funeral Rule – without impeding funeral homes’ ability to serve families with compassion and dignity. Additionally, association members Cason Hightower, a member of the NFDA Advocacy Committee from Carrollton, Georgia, and former At-Large Representative Stephen Kemp of Southfield, Michigan, offered comments. You can watch a recording of the meeting at https://kvgo.com/ftc/open-commissionoctober-20-2022. One of NFDA’s long-held positions is that the trigger for presenting a General Price List (GPL) to families is vague and imprecise, a point which Mitchell, Hightower and Kemp addressed in their comments. The Funeral Rule currently requires the GPL to be given upon “beginning a discussion” of funeral goods, services, arrangements or prices. NFDA has pointed out that this requirement can be triggered in many different situations and scenarios where the consumer has no interest in selecting funeral goods or services. It can also come at a point when presenting a price list may seem cold and crass. Commissioner Bedoya commented that he did not believe a scenario shared by Hightower during her remarks would have triggered the requirement to provide a GPL as she believed; however, this assertion appears to be inconsistent with how the Commission has enforced the Rule to date. Farmer’s comments focused on two areas. First, he focused on the rigidity of the Rule and its effect of stifling funeral homes’ ability to offer reduced packages, such as cremation with a service for less than the basic non-declinable service fee. As written, the Rule stifles competition and keeps prices artificially high for consumers. Second, Farmer addressed the suggestion that the Funeral Rule be amended to require funeral homes to post prices online. While NFDA agrees that funeral homes should be transparent regarding pricing, it is NFDA’s position that posting prices online should be the choice of the business owner. Further, there is no evidence that consumers have difficulty obtaining pricing information. 10 Montana Funeral Directors Association

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