FTC charges funeral company with deceptive marketing practices

Federal Issues Courts FTC DOJ Enforcement FTC Act UDAP Deceptive

On April 22, the DOJ filed a complaint on behalf of the FTC against certain defendants providing funeral goods and services to consumers throughout the U.S. for alleged violations of Section 5 of the FTC Act and the FTC’s Funeral Rule. (See also FTC press release here.) According to the complaint, the defendants, who arrange third-party cremation services, allegedly (i) misrepresented that they perform local funeral services, which were instead outsourced to unaffiliated third parties; (ii) charged consumers additional undisclosed costs; and (iii) illegally threatened to withhold remains or information about the remains from consumers who refused to pay previously undisclosed fees or the new, higher prices. The complaint seeks injunctive relief, monetary relief, and civil penalties.