United States Attorney for the 

Southern District of New York 

By: NATALIE N. KUEHLER 

Assistant United States Attorney 

86 Chambers Street, 3rd Floor 

New York, New York 10007 

Telephone: (212) 637-2741 

Facsimile: (212) 637-2750 

Email: natalie.kuehler@usdoj.gov 

UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF NEW YORK 

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: 

UNITED STATES OF AMERICA, : 

: AMENDED COMPLAINT 

 Plaintiff, : 

: 12 Civ. 03722 (ER) 

v. : 

 : ECF Case 

HARRISON FUNERAL HOME, INC. and : 

JOHN BALSAMO, : 

: 

 Defendants. : 

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Plaintiff, United States of America, by its attorney Preet Bharara, United States Attorney 

for the Southern District of New York, alleges for its complaint against Harrison Funeral Home, 

Inc. (“Harrison Funeral Home”) and John Balsamo (“Balsamo”) upon information and belief as 

follows: 

I. INTRODUCTION 

1. The United States brings this action under Sections 5(a)(1), 5(m)(1)(A), 13(b), 

and 16(a) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. §§ 45(a)(1), 

45(m)(1)(A), 53(b), and 56(a), to obtain monetary civil penalties and a permanent injunction 

against Harrison Funeral Home and Balsamo (collectively, “Defendants”) for their repeated 

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violations of the Federal Trade Commission’s Trade Regulation Rule Concerning Funeral 

Industry Practices (the “Funeral Rule”), 16 C.F.R. Part 453. 

II. JURISDICTION AND VENUE 

2. This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 1337(a), 

1345, and 1355, and 15 U.S.C. §§ 45(m)(1)(A), 53(b), and 56(a). This action arises under 

15 U.S.C. § 45(a)(1). 

3. Venue is proper in this district under 15 U.S.C. § 53(b) and 28 U.S.C. §§ 1391(bc) and 1395(a) because Harrison Funeral Home is located in this district, Balsamo resides in this 

district, and the events or omissions giving rise to the claims alleged herein occurred in this 

district. 

III. PARTIES 

4. Plaintiff is the United States of America, suing on behalf of the Federal Trade 

Commission (“FTC”), an independent agency of the United States government given statutory 

authority and responsibility by the FTC Act, as amended, 15 U.S.C. §§ 41-58. The FTC is 

charged with, inter alia, enforcing Section 5 of the FTC Act, 15 U.S.C. § 45, which prohibits 

unfair and deceptive acts or practices in or affecting commerce, and may obtain civil penalties 

for rule violations pursuant to 15 U.S.C. § 45(m)(1)(A). 

5. Defendant Harrison Funeral Home is a New York corporation providing funeral 

services with a principal place of business located within the Southern District of New York at 

329 Halstead Avenue, Harrison, New York 10528. 

6. Defendant Balsamo is the president and an owner of Harrison Funeral Home. His 

business address is the same as Harrison Funeral Home’s principal place of business. At all 

times material to this complaint, acting alone or in concert with others, Balsamo formulated, 

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directed, and controlled, had the authority to control, or participated in the acts and practices of 

Harrison Funeral Home set forth in this complaint. 

THE FUNERAL RULE

7. The FTC issued the Funeral Rule, a trade regulation rule concerning funeral 

industry practices, to ensure that people inquiring about funeral arrangements receive full and 

fair pricing information and are not taken advantage of by funeral providers through inflated 

prices, overcharges, double charges or unnecessary services. 

8. The Funeral Rule requires, among other things, that funeral providers disclose 

information about prices to persons inquiring about funeral arrangements, and give them a 

written general price list, casket price list, and outer burial container price list. The Funeral Rule 

also prohibits certain unfair practices, such as embalming for a fee without prior permission or 

conditioning the purchase of any funeral good or service upon the purchase of any other funeral 

good or service, and prohibits misrepresentations about legal, cemetery or crematory 

requirements pertaining to the disposition of human remains. In addition, the Funeral Rule 

requires that each person who arranges a funeral be given a statement of the funeral goods and 

services selected by that person and the price to be paid for each item. 

9. The Funeral Rule, which was promulgated by the Commission under Section 18 

of the FTC Act, 15 U.S.C. § 57a, became effective in its entirety on April 30, 1984, and was 

amended on July 19, 1994. 

DEFENDANTS’ INITIAL VIOLATIONS OF THE FUNERAL RULE

10. Defendants have at all times relevant to this complaint been “funeral providers” 

who sold or offered to sell “funeral goods” and “funeral services,” as those terms are defined in 

the Funeral Rule, 16 C.F.R. § 453.1(h)-(j). 

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11. On April 12, 2001 and May 7, 2001, to ascertain whether Defendants were acting 

in compliance with the Funeral Rule, FTC staff visited Harrison Funeral Home and posed as 

consumers making inquiries about prospective funeral arrangements. On both occasions, the 

Defendants violated the Funeral Rule by failing to provide a general price list and failing to 

present a casket pricelist in the time and manner required. 

12. Specifically, in violation of 16 C.F.R. Part 453.2(b)(4), Defendants failed to 

provide to each person who inquires in person about funeral goods, funeral services, or prices of 

funeral goods or services a printed or typewritten general price list, upon beginning discussion of 

any of the following: (1) the prices of funeral goods or funeral services; (2) the overall type of 

funeral service or disposition; or (3) specific funeral goods or funeral services offered by the 

funeral provider. 

13. Moreover, in violation of 16 C.F.R. § 453.2(b)(2), Defendants failed to provide to 

each person who inquires in person about the offerings or prices of caskets or alternative 

containers a printed or typewritten casket price list, upon beginning discussion of, but in any 

event before showing, caskets or alternative containers. 

14. The FTC gave Defendants the option of enrolling in the Funeral Rule Offenders 

Program (“FROP”) in connection with their 2001 violations of the Funeral Rule. The FROP was 

developed by the National Funeral Directors’ Association (the “NFDA”) and allows the FTC to 

offer enrollment to first-time Funeral Rule violators in lieu of formal law enforcement actions. 

Participating funeral providers are required to (i) make a payment to the United States Treasury; 

(ii) allow the NFDA to examine the adequacy of the home’s general price list, casket price list 

and outer burial container price list; and (iii) enroll all employees who are engaged in the 

offering or selling of funeral goods and services in training classes to prevent future violations. 

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15. Although Defendants agreed to enter into the FROP and submitted the required 

payment to the U.S. Treasury, they never participated in any FROP training to ensure future 

compliance with the Funeral Rule. 

DEFENDANTS’ SUBSEQUENT VIOLATIONS OF THE FUNERAL RULE 

16. On March 12, 2010, and July 2, 2010, to ascertain whether Defendants were 

acting in compliance with the Funeral Rule, FTC staff again visited Harrison Funeral Home and 

posed as consumers making inquiries about prospective funeral arrangements. On both 

occasions, the Defendants again violated the Funeral Rule by failing to provide a general price 

list and failing to present a casket pricelist in the time and manner required. On one occasion, 

Defendants also violated the Funeral Rule by failing to present an outer burial container price list 

in the time and manner required. 

17. Specifically, in violation of 16 C.F.R. Part 453.2(b)(4), on March 12, 2010, 

Defendant Balsamo discussed the prices of funeral goods or services with FTC staff but did not 

provide the FTC staff with a general price list to retain. 

18. That same day, in violation of 16 C.F.R. § 453.2(b)(2), Defendant Balsamo 

discussed the prices of caskets with FTC staff and showed FTC staff caskets or pictures of 

caskets, but did not provide the FTC staff with a casket price list. 

19. Moreover, in violation of 16 C.F.R. § 453.2(b)(3), Defendant Balsamo on March 

12, 2010 discussed the prices of outer burial containers with FTC staff and showed FTC staff 

outer burial containers or pictures of outer burial containers, but did not provide the FTC staff 

with an outer burial container price list. 

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20. On July 2, 2010, in violation of 16 C.F.R. Part 453.2(b)(4), Defendant Balsamo 

again discussed the prices of funeral good or services with FTC staff but did not provide the FTC 

staff with a general price list to retain. 

21. That same day, in violation of 16 C.F.R. § 453.2(b)(2), Defendant Balsamo again 

discussed the prices of caskets with FTC staff and showed FTC staff caskets or pictures of 

caskets, but did not provide the FTC staff with a casket price list. 

FIRST CLAIM FOR RELIEF 

Civil Penalties under the FTC Act – Violations of the Funeral Rule

22. Plaintiff incorporates the allegations contained in Paragraphs 1 through 21 above. 

23. Defendants sell and offer to sell funeral goods and funeral services in or affecting 

commerce as “commerce” is defined in Section 4 of the FTC Act, 15 U.S.C. § 44. 

24. Defendants violated the Funeral Rule as described above with knowledge as set 

forth in Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. § 45(m)(1)(A). 

25. Pursuant to Section 18(d)(3) of the FTC Act, 15 U.S.C.§ 57a(d)(3), a violation of 

the Funeral Rule constitutes an unfair or deceptive act or practice in violation of Section 5(a)(1) 

of the FTC Act, 15 U.S.C. § 45(a)(1). 

26. Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), provides that “unfair or deceptive 

acts or practices in or affecting commerce are hereby declared unlawful.” 

27. Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. § 45(m)(1)(A), authorizes the 

Court to award monetary civil penalties of not more than $16,000 for each such violation of the 

Funeral Rule. 

 

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SECOND CLAIM FOR RELIEF 

Injunctive Relief under the FTC Act – Violations of the Funeral Rule

28. Plaintiff incorporates the allegations contained in Paragraphs 1 through 27 above. 

29. Defendants sell and offer to sell funeral goods and funeral services in or affecting 

commerce as “commerce” as defined in Section 4 of the FTC Act, 15 U.S.C. § 44. 

30. Defendants have violated the Funeral Rule as described above with knowledge as 

set forth in Section 5(m)(1)(A) of the FTC Act, 15 U.S.C. § 45(m)(1)(A). 

31. Pursuant to Section 18(d)(3) of the FTC Act, 15 U.S.C.§ 57a(d)(3), a violation of 

the Funeral Rule constitutes an unfair or deceptive act or practice in violation of Section 5(a)(1) 

of the FTC Act, 15 U.S.C. § 45(a)(1). 

32. Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), provides that “unfair or deceptive 

acts or practices in or affecting commerce are hereby declared unlawful.” 

33. Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), authorizes the Court to issue a 

permanent injunction enjoining defendants from violating the FTC Act. 

PRAYER FOR RELIEF 

WHEREFORE, plaintiff United States prays for judgment against the Defendants for 

their violations of the Funeral Rule and Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), as 

follows: 

A. On the First Claim for Relief, awarding monetary civil penalties in the maximum 

amount permitted by law; 

B. On the Second Claim for Relief, enjoining Defendants’ from violating the Funeral 

Rule and Section 5 of the FTC Act, 15 U.S.C. § 45; and 

 

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C. All other relief this Court deems just. 

Dated: New York, New York 

 October 5, 2012 

PREET BHARARA 

United States Attorney for the 

Southern District of New York 

Attorney for the United States

By: ______/s. Natalie N. Kuehler______ 

NATALIE N. KUEHLER 

Assistant United States Attorneys 

86 Chambers Street, 3rd Floor 

New York, NY 10007 

Telephone: (212) 637-2719/2741 

Facsimile: (212) 637-2650 

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