“The laws were not made so much for the direction of good men, as to circumscribe the bad.” –English Novelist Samuel Richardson
Journalist Earl Wilson once observed, “Some have figured it out – we have 35 million laws on the books to enforce the Ten Commandments.”
I’m sure the number has increased since Mr. Wilson’s observation.
The Federal Trade Commission will be one of those adding to that figure in 2017 as they review the funeral rule. In their last review of the funeral rule, the FTC was criticized for expensive hearings that produced very little result. That is unlikely to happen again.
One of the proposals brought to FTC to consider is the requirement of all funeral homes to post prices on their websites. The California Department of Consumer Affairs already requires that California funeral homes do so: “If the funeral establishment has a Web site, it must post the list of funeral goods and services that are required to be included in their GPL, pursuant to federal rule, and include a statement that the GPL is available upon request via a link from the home page, OR include the words ‘price information’ or a similar statement that includes the word ‘price’ with a link to the GPL.” (from the CA DCA website)
A petition has been submitted to FTC by Funeral Consumers Alliance for this nationwide proposal. They chose Amazon’s “Prime Day” (aka “Cyber Monday of Summer”) for this petition submission. They have aligned themselves with the Consumer Federation of America, Executive Director Josh Slocum stated, “The Federal Trade Commission should update antiquated disclosure rules developed in the pre-internet 1980s.”
“In almost every other market information is just a click away and that intensifies competition, drives down prices and improves services.”
Forbes magazine’s writer Ashlea Ebeling wrote the article “Should Funeral Homes Have to Post Prices Online?” She begins: “It pays to comparison shop when it comes to funeral home services; Prices for the same funeral services in the same city can be double or triple those of a nearby funeral home.”
Nextavenue.org Money & Work editor Richard Eisenberg wrote: “The Federal Trade Commission (FTC) issued its Funeral Rule in 1984 and amended it in 1994. Trouble is, the rule only requires funeral homes to provide price information over the phone or in price lists if you visit them. The rule doesn’t require disclosure on the websites of the homes. There’s also no requirement that a funeral home respond to an email request. And in the survey, many homes didn’t.”
Betty Yerak of the Chicago Tribune wrote in her article, “Funeral Homes Should put Funeral Costs online, Consumer Groups Say”: Only 38 of 150 funeral homes examined in 10 U.S. markets by the Funeral Consumers Alliance and Consumer Federation of America fully disclosed prices on their websites. Meanwhile, 24 failed to fully disclose prices both on their website and in response to an email and a phone call, the survey said.”
NY Times’ “Your Money Advisor” Ann Carrns, uses Funeral Home Consumer Alliance’s data for its discussion of this issue: Just a quarter of the funeral homes in the study fully disclosed prices on their websites, while another 58 percent provided them after researchers sent emails or made phone calls. But 16 percent failed to disclose the information even after researchers followed up by email or phone, the report found. In two markets – Atlanta and Washington – just one of 15 operators posted price information online. None did so in Indianapolis and Philadelphia.”
The question becomes what constitutes fair presentation of funeral pricing? There are differences in funeral homes. There are some located in industrial areas that specialize in low cost cremations (primarily) but also offer simple burial. These funeral homes generally do not offer assistance with obituary placement, obtaining a flag and assisting with other veterans benefits, assisting with other paperwork, do not offer no cost private viewings to the immediate family, will not accept verified insurance policies as payments, do not offer grief support groups, complimentary online obituary placement and on and on. There is a difference.
How do you explain that with the simple posting of FTC required Direct Cremation pricing template. You cannot. It then becomes a matter of price not service. There is a reason why the cost of eyeglasses ranges from the internet providers to your local optician who may be associated with an ophthalmologist for full care. There is a reason for the cost of dentures or dental implants ranging from the brand new labs and the established dentist. It is not just about profit.
Las Vegas weddings vary in price also. From the “Drive Thru Chapel”: Prices start at $62. “A Special Memory Wedding Chapel is well known for offering this cool cheap Las Vegas wedding package – a drive-thru wedding, where you can get hitched, without leaving your car – yes it is that fast and simple! The basic package starts at a mere $62.49 where you get a drive-through ceremony with music; rose bouquet and boutonniere; 12 photos; and a certificate holder.”
Wynn Hotel ceremonies range a bit higher. Remember it is only a cremation….errr wedding: Packages range include the Opulent wedding at $3,490, Zen Wedding at $5,492 or the budget breaking Elegant affair $29,990. It’s a wedding, how can price matter? The same way as the final care establishment that handles the final services can. The difference is we have to display prices in the FTC format. The FTC does not look at these websites to see how they display their offerings.
I asked Michael Turkiewicz, President of FuneralNet for his view on this expected regulation: “Well that’s a good question. Here are a couple beliefs I have, right or wrong.
“Most families, because of the ease of researching on the Internet, are going to search for prices prior to making arrangements. Americans have become accustomed to doing so in almost everything that they purchase especially larger ticket items. It is difficult to compare and justify costs between service providers. There are just too many variables and the options are rarely understood fully by consumers.
“We’ve always felt at FuneralNet that funeral homes should list prices on their sites, but not simply a GPL, as that is too confusing. If funeral homes are publishing prices, we feel prices need to be in price ranges or “starting at…” format. Package pricing works too, if there are good visuals to illustrate the items within the packages.
“There was a time that we did not recommend a higher than market price average funeral home publish its prices. Those years are long gone now as the national and regional cremation providers advertise across the country.”
Jeff Harbeson, (“The Funeral Commander”), founder of the Harbeson Group and the Director of Marketing for the Foresight Companies laid the blame appropriately on our doorstep. So many funeral directors still do not comply with a 32 year old law and appropriately disclose prices.
“We have brought this on ourselves.”
Jeff expanded, “As a consumer, I want to see prices. As a funeral director it is unfair to simply list prices. We need to change the dynamics of how we do business. The tide has turned. We tried to change the tide and cannot and the sand is washing out to the jetty. If they can’t find price information on your website they will go to the next one.”
Jeff suggests three approaches to this challenge: “1. Admit that we failed to police ourselves. 2. Explain your charges wisely. 3. Trust that the consumer has common sense to see the difference between you and your competitor.”
We don’t know what the FTC will propose, but be ready. Being a member of an association matters as the FTC hearings begin.
Be proactive and create the website pricing presentation you need to show your value. Look at many other websites, including the ones mentioned.
It is coming.
“The fatal attraction of government is that it allows busybodies to impose decisions on others without paying any price themselves. That enables them to act as if there were no price, even when there are ruinous prices – paid by others.” –Thomas Sowell