On Wednesday the FTC published the below information and video to help define what a “funeral business” is and how to comply with the funeral rule.
The Funeral Rule establishes some basic requirements that apply to all funeral providers. Who’s considered a funeral provider? Any business that sells funeral goods and funeral services to the public, including funeral directors, funeral homes, cemeteries, and crematories, among other businesses.
One key provision requires those covered by the Rule to give potential clients a written price list of the goods and services their business provides. The Rule also spells out some practices that are not allowed. For example, it is not permitted to:
- require a client to buy a “package” of goods and services that includes items they don’t want.
- say the law requires a client to buy a particular item or service if it isn’t true.
- refuse to handle, or charge a fee for handling, a casket or urn a client bought somewhere else.
Each violation of the Rule is subject to a penalty of up to $16,000, so it pays to learn what compliance entails. Watch the video for more details.
If I understand this correctly, a cemetery that doesn’t have a funeral home on it’s premise doesn’t fall under the rule, but a third party casket supplier does. So what if the cemetery sells vaults and caskets? Do they now fall under the rule?
You are correct a cemetery that doesn’t have a funeral home on it’s premise doesn’t fall under the rule. Also, the Third party casket supplier is not covered by the funeral rule. The FTC trigger for complying with the funeral rule is the provide must offer both goods and services. The companies that only offer goods are exempt and those that offer only services are exempt. It is my understanding that a cemetery that sells caskets and vaults only is not required to comply with the funeral rule, so long as they are not offering funeral services.