The GPL That Wasn't Given
A funeral home in Kansas City publishes a General Price List (GPL) with a basic services fee of $2,195 and casket prices from $995 to $8,000. The GPL never states that embalming is not required by law, and it mentions a $250 'casket handling fee' for caskets purchased elsewhere only in a footnote to the casket price list. A daughter calls from California and asks for the price of a direct cremation and the least expensive casket. The receptionist says, 'We don't give prices over the phone; you have to come in.' At the arrangement conference, the funeral director tells the family that Missouri law requires embalming for any viewing and that they must buy a casket from the funeral home because 'outside caskets don't fit our retort.' The family signs a statement of goods and services but is not given a copy.
1. List the FTC Funeral Rule violations and explain the rule for each.
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Funeral Rule violations. (1) The GPL omits the required disclosure that embalming is not required by law except in certain circumstances. (2) The GPL does not disclose the $250 casket handling fee; if the funeral home charges a handling fee for caskets purchased elsewhere, the fee must appear on the GPL. (3) The receptionist refused to give price information over the telephone. The Funeral Rule requires funeral providers to answer telephone inquiries about the prices of the 16 required items, including direct cremation and the least expensive casket. (4) The funeral director misrepresented that Missouri law requires embalming for viewing; the Rule prohibits false statements that embalming is required by law. (5) The director said the family must buy a casket from the home and that outside caskets do not fit the retort. The Rule prohibits requiring a casket for cremation and prohibits refusing to accept a casket purchased elsewhere. (6) The family was not given a copy of the statement of funeral goods and services selected. The statement must be given after the arrangement conference and before delivery.
2. What corrective action should the funeral home take, and what are the possible consequences?
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Corrective action. The funeral home should revise the GPL to include all 16 itemized prices and required disclosures, revise the casket price list, and train the receptionist and directors on telephone price quotes and the right to use an outside casket. It should give the family a corrected statement and a copy of the GPL, and refund the handling fee if one was charged without disclosure. It should document the training. Consequences. The FTC can investigate and seek civil penalties and injunctive relief for Rule violations. The Missouri Board can also discipline the funeral director and the funeral home for misrepresentation and unprofessional conduct. A state attorney general or private plaintiff may pursue deceptive-practice claims. Because the conduct was repeated and involved a vulnerable family, the risk is higher than a single clerical omission.
3. How should the receptionist have handled the telephone call?
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The receptionist should have answered the price questions directly. The Funeral Rule requires funeral providers to give price information over the telephone for the 16 items on the GPL, including the direct cremation price and the least expensive casket price. The receptionist could say, 'Our direct cremation price is $X, and our least expensive casket is $995; I can also mail or email you our General Price List.' The receptionist should not require the caller to come in before giving prices, and should not guess or quote a package price that hides required itemization. The call should be documented in a price-inquiry log, and the GPL should be available for mailing. If the caller asks about caskets purchased elsewhere, the receptionist should explain any disclosed handling fee and that the family may supply its own casket.