Price List Discrepancy at the Counter
A family arrives at Northgate Funeral Chapel to arrange a direct cremation for their mother. The general price list posted in the lobby shows direct cremation at $1,295, but the arrangement counselor, Ben, quotes $1,650 and explains that the posted list is 'last year's.' Ben also says the required alternative container is included, then adds a $185 'handling' charge on the statement. The family asks for a copy of the price list to take home. Ben says the list is for display only and offers a brochure instead. The family signs and pays a $500 deposit. Two days later they learn the crematory charges $395, which Northgate did not disclose. The owner asks you, the new compliance manager, to assess the file. Northgate's license is current and the crematory is separately licensed.
1. Identify each disclosure and pricing violation visible in this file, and explain why the 'display only' position is untenable.
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Several violations appear. First, quoting $1,650 when the current general price list shows $1,295 is a pricing misrepresentation unless a properly dated revised list was in effect; a licensee must charge according to its filed or posted list and cannot dismiss it as 'last year's' without replacing it. Second, adding a $185 'handling' charge not shown on the price list is an undisclosed charge. Third, telling the family the alternative container is included and then billing separately is inconsistent and misleading.
The 'display only' position fails because California requires the general price list to be given to consumers to keep, not merely displayed. Refusing to provide a copy and substituting a brochure defeats the disclosure purpose. Fourth, failing to disclose the $395 crematory charge, if it is a charge the family must pay, is an omitted required disclosure. Each item supports a consumer-protection finding and possible license discipline.
2. What corrective steps and documentation should Northgate take, and what should happen to the $500 deposit and the overcharges?
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Northgate should immediately reconcile its posted general price list with the prices actually quoted, issue a dated corrected list, and train staff that the list must be handed to consumers. It should send the family a written itemization showing the correct direct cremation price, remove the undisclosed $185 handling charge, and disclose the crematory charge or absorb it if it was never properly passed through.
The family should receive a refund of the difference between $1,650 and the properly applicable price, plus the $185 charge, and a clear statement of any crematory cost. The $500 deposit should be applied to the corrected total or refunded on request. Northgate should document the corrected list, the refund calculation, staff retraining, and a written apology, and retain all records for inspection. Because the conduct may constitute a deceptive practice, the compliance manager should evaluate whether self-reporting to the licensing authority is prudent before a complaint arrives.