Business Blog
Funeral provider to post key information on its website, due to FTC settlement
By
Lesley Fair
For grieving consumers who have to make funeral or cremation arrangements for loved ones in other parts of the country, the internet can ease the burden of long-distance logistics – but not if companies violate the law. Last year, the Department of Justice filed suit on the FTC’s behalf, charging that Legacy Cremation Services, owner Anthony Joseph Damiano, and related companies targeted the bereaved with practices that violated the FTC Act and the Funeral Rule, including by falsely claiming to be local providers and by charging more than advertised prices. If people balked at the bait-and-switch, the FTC says the defendants sometimes employed a particularly pernicious tactic: a threat to withhold the loved one’s remains until people knuckled under and paid up. A settlement in the case imposes a $275,000 civil penalty and requires the defendants to clearly disclose key facts on their website.
According to the complaint, when consumers searched online for cremation providers in a particular locale, the defendants’ sites led them to believe they were dealing with a business in that city or town. It was a false impression the FTC says the defendants didn’t correct when people contacted them. What’s more, the defendants failed to reveal that a third-party company – sometimes located hours away from the loved one – would actually provide the services. The complaint also alleges that the defendants advertised low prices they didn’t honor and, in some cases, retaliated when consumers complained by making those threats to withhold the loved one’s remains.
In addition to the civil penalty, the order includes provisions that protect grieving consumers when making major financial decisions associated with funerals or cremation.
First, in additional to the Funeral Rule’s existing requirement to promptly disclose written general price information during any in-person meeting or orally by phone, the order in this case goes further. It also requires the defendants to post key price information on their websites.
Second, the defendants must clearly disclose on their websites their actual physical location and a notice when funeral goods or services will be provided by a third-party company they don’t own.
Third, the order requires the defendants to affirmatively disclose to consumers the name, address, and contact information of any third-party provider that will provide funeral goods or services immediately upon selection of the provider. Another important provision: an express ban on withholding information about the location of the deceased and threats not to return the remains.
The FTC has compliance resources for members of the funeral industry and advice for consumers on their rights when buying funeral services or products.
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Consumer Alert
Funeral home now has to post prices online
By
Bridget Small
Consumer Education Specialist, FTC
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When families need to plan a funeral or cremation service, especially in an unfamiliar place, they often search online for a local provider. Now, thanks to a court order in an FTC case, people who work with one seller of cremations will find its prices online and know where it’s located.
You might have read about the FTC’s case against Legacy Cremation Services and others last April. If you didn’t, here’s the story: the FTC said in a lawsuit that the company used online ads to make it look like they performed cremations when they didn’t; made it look like they were local when they weren’t; and gave grieving people lowball quotes by phone —when the real price was much higher.
Now, among other things, a court order says that Legacy and its owner have to post price information on their websites. When it comes to location, Legacy has to give clear information about its (actual) locations — as well as the names, locations, and contact information for the local funeral homes they connect people with. (Info they didn’t so much share before.)
It’s never easy making funeral arrangements. To get help thinking through the steps, and knowing what funeral homes are required to do, check out Shopping for Funeral Services by Phone or Online — which, let’s face it, is how many of us shop for everything now. And remember: if one funeral home won’t answer your questions or give you the information you asked for, look somewhere else. And then tell the FTC: ReportFraud.ftc.gov.
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For Release
FTC Action Leads to Civil Penalties, Strict Requirements for Funeral and Cremation Provider That Withheld Remains from Loved Ones to Extract Payment
Proposed court order would require defendants to post price lists online and fully disclose all third-party providers
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Anthony Joseph Damiano and his funeral service companies—Funeral & Cremation Group of North America, LLC, and Legacy Cremation Services, LLC (doing business as Heritage Cremation Provider, Evergreen Funeral Home and Crematory, and Carolina Central Crematory)—will pay civil penalties and abide by strict requirements on how they communicate with customers to resolve a lawsuit filed on behalf of the Federal Trade Commission by the U.S. Department of Justice.
The DOJ and FTC filed their complaint against Damiano and his companies in April 2022, alleging that they misrepresented their location, leading consumers to believe they were a local provider, advertised deceptively low prices, illegally threatened and failed to return cremated remains to bereaved consumers, and failed to provide disclosures required by the Funeral Rule.
“Lying to consumers about critical information including price and location of services when they are dealing with the loss of a loved one is outrageous and illegal,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Our actions in this case show the FTC’s commitment to enforcing the Funeral Rule to protect consumers and honest funeral homes.”
The complaint alleged that the defendants claimed to be local funeral or cremation providers when speaking with customers, failing to disclose that the services would be contracted to a third party, sometimes hours away from loved ones. The complaint also alleged that when consumers were presented with undisclosed fees and higher prices, the defendants in some cases withheld the remains of their loved ones to extract payment.
The proposed court order, which was agreed to by the defendants in the case, would require the defendants to:
- Share important info on their website: The order requires the defendants to disclose key facts on their website, including their actual physical location and a general price list, as well as a notice when funeral goods or services will be provided by a third-party company not owned by the defendants.
- Disclose their price list upfront: The defendants are required to provide consumers with a general price list either during or immediately after their first interaction with a consumer about funeral goods or services, whether online or by telephone, and before any discussion of price occurs.
- Provide info on third parties: The order requires the defendants to give consumers the name, address, and contact information for any third-party provider that will provide funeral goods or services.
- Pay a civil penalty: The order requires the defendants to pay $275,000 in civil penalties.
The staff attorneys on this matter are Thomas Harris and Rebecca Plett.
The Department of Justice filed the order and civil penalty judgment on behalf of the Commission in the U.S. District Court for the District of Florida. NOTE: Consent judgments have the force of law when approved and signed by the District Court judge.
The Federal Trade Commission works to promote competition and protect and educate consumers. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.
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Consumer Alert
Reporting fraud 101: protect your community by reporting scams
By
Sara Rex
Intern, Office of Public Affairs, FTC
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Have you ora family member or friend ever lost money to a scam? You’re not alone: last year scammers pulled in over $8 billion. But there’s a way you can help.
If you think you’ve spotted a scam, tell the FTC at ReportFraud.ftc.gov to help fight fraud in your community. The FTC uses reports like yours to investigate and bring cases against fraud, scams, and bad business practices, and to spot trends and educate people about scams. To get started, go to ReportFraud.ftc.gov and click on “Report Now.” You can give as much or as little detail about yourself as you’d like. After you submit a report, you’ll get steps you can take to protect yourself or try to get your money back.
Watch the video below for more information about reporting fraud — then share it with your friends and family. And the next time you spot a scam, report it at ReportFraud.ftc.gov.
How to Report Fraud at ReportFraud.ftc.gov
Share this video using the links in the player above or use the YouTube version.
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Consumer Alert
Shopping online? Here’s what to do when things go wrong
By
Andrew Rayo
Consumer Education Specialist
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Ever had a bad online shopping experience? Maybe you ordered one thing but got another. Or that new company never shipped your order, despite charging you. So, what do you do?
If you can relate, you’re not alone. In 2022, online shopping scams were the second-most reported type of scam to the FTC. The good news is you have rights, and there are steps you can take.
If something didn’t arrive or you didn’t accept it, and now the company won’t refund your money, dispute the charges. If products show up that you never ordered, you don’t have to pay for them. Federal law protects you.
To try to stay ahead of these problems, if you haven’t shopped with a company before, start by searching online for the company’s name, plus words like “review,” “complaint,” or “scam.” See what other people are saying.
And no matter where you shop online, remember:
- Check refund and return policies. Sellers often have different (and stricter) refund and return policies for sale items, and dishonest sellers will use tricky disclosures and fine print to deny refund requests.
- Use a credit card for online purchases, if possible. Credit cards offer the most protection against fraud compared to other types of payments including the right to dispute charges if there are problems with your purchase.
- Always save your receipts and confirmation emails. If something goes wrong, these can help you get your money back from the seller or file a dispute with your credit card company.
Learn more about online shopping. Or if you want to learn more about last year’s top scams, visit ftc.gov/data.
And if you suspect a scam, report it to the FTC at ReportFraud.ftc.gov.
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| April is Financial Literacy Month, and a great time to take advantage of free advice at ftc.gov/MoneyMatters.Federal Trade Commission data show people reported losing $8.8 billion to scams in 2022, up more than 30 percent from 2021. Money Matters has the tools we can all use to spot, avoid, and report scams, and help those we care about protect their bottom line.The financial impact of the pandemic is far-reaching. Many of us are still feeling it in many ways: in finding work, buying or renting a home, getting loans, and simply making ends meet. And, just as we’re working to regain our financial footing, scammers are trying to take advantage by stealing both money and personal information.The information at Money Matters is here when and where you need it, on your phone or computer, and includes articles, videos, graphics to share on social media, and PowerPoint presentations on these topics: |
| Buying and Owning a CarPlease share what you learn with family, friends, and members of your community. Share the graphics and videos on social media. Even use the presentation slides to talk with groups you might be part of — say, at a neighborhood PTA or club meeting. Prizes and GrantsStay connected by subscribing to get consumer alerts on the latest scams.Subscribe |
