NFDA NEWS Breaking News: FTC Issues Report on Undercover Phone Pricing Sweeps By NFDA FTC staff issued a report on the commission’s undercover Funeral Rule phone sweep it conducted in 2023, which is available by scanning the QR code. The report presents the FTC’s findings on its ability to obtain price information from funeral providers by phone from the agency’s first-ever undercover Funeral Rule phone sweep. www.ftc.gov/system/files/ftc_gov/pdf/staffreport_-calling-for-funeral-services.pdf About the Phone Sweep As you are aware, the FTC placed calls to 278 funeral providers from February through December of 2023. For each of the randomly selected funeral providers, there were three attempts to reach the provider by phone during business hours (9 a.m.-5 p.m.) and up to three attempts outside of business hours. On the calls, FTC staff asked for pricing information, typically for direct cremation, cremation and a memorial service, and cremation with a viewing. Key Findings of the Report The FTC’s report asserts that they were “unable to obtain price information after business hours” from 26% of the funeral providers they called (73 providers), and they were unable to obtain price information from 7% of the providers during business hours (21 providers). The report also shows that, in many instances, multiple calls were needed to obtain price information from a funeral provider. After business hours, staff either had to call more than once or wait for a return call from nearly 70% of the funeral providers called during the sweep. During business hours, staff had to call multiple times or wait for a return call for about 30% of the funeral providers called. Finally, the report details that half of the funeral providers called answered at least some questions about pricing with estimates or ranges rather than actual prices. The report also notes that at least 33% of the funeral homes provided package pricing for at least one service on a call (such as cremation with a viewing) without giving itemized price information for that service. In addition, staff found that at least 37 funeral providers quoted different prices for the same services on different calls. While the FTC has previously reported on this phone sweep, this report is focused on how long it took to get the information and how many times they had to call. Remember, many of the findings just listed, in and of themselves, are not violations. It is generally acceptable to use an answering machine, have nonlicensed personnel defer to licensed individuals to provide the information, and have a policy of only providing the required information during business hours. 12 | Directors Digest
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