UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF ILLINOIS

 

 )

UNITED STATES OF AMERICA, )

Plaintiff, )

)

v. ) Civil Action No.

)

)

HARRY J. CARTER III, )

individually and doing business as )

Carter Funeral Chapels, Ltd. )

)

Defendant. )

)

COMPLAINT FOR CIVIL PENALTIES

AND INJUNCTIVE AND OTHER RELIEF

 Plaintiff, the United States of America, acting upon notification and authorization to the

Attorney General by the Federal Trade Commission (“Commission”), for its Complaint alleges

that:

1. Plaintiff 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, a permanent injunction, and other equitable relief for Defendant’s

violations of the Commission’s Trade Regulation Rule Concerning Funeral Industry Practices

(“Rule” or “Funeral Rule”), 16 C.F.R. Part 453.

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).

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3. Venue is proper in this district under 15 U.S.C. § 53(b) and 28 U.S.C. §§ 1391(b)-(c)

and 1395(a).

PLAINTIFF

4. This action is brought by the United States of America on behalf of the Federal Trade

Commission pursuant to 15 U.S.C. § 56. The Commission is 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 Commission is charged, inter alia, with enforcing Section 5 of the FTC Act,

15 U.S.C. § 45, which prohibits unfair and deceptive acts or practices in or affecting commerce. The

Commission also is authorized by 15 U.S.C. § 57a(a)(1)(B) to issue trade regulation rules that

“define with specificity acts or practices which are unfair or deceptive acts or practices in or

affecting commerce” within the meaning of Section 5(a)(1), 15 U.S.C. § 45(a)(1), and may obtain

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

DEFENDANT

5. Defendant Harry J. Carter III is an individual doing business as Carter Funeral

Chapels Ltd. with his principal place of business at 2100 E. 75th Street, Chicago, Illinois. At all

times material to this complaint, acting alone or in concert with others, he has formulated, directed,

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

Chapels, Ltd., including the acts and practices set forth in this complaint. Carter resides in this

district and, in connection with the matters alleged herein, transacts or has transacted business in this

district.

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THE FUNERAL RULE

6. The Funeral Rule, 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 since that date has remained

in full force and effect. Amendments to the Funeral Rule were promulgated by the Commission

under Section 18 of the FTC Act, 15 U.S.C. § 57a, and became effective on July 19, 1994. The

Funeral Rule is codified at 16 C.F.R. Part 453.

VIOLATIONS OF THE FUNERAL RULE

7. At all times material herein, Defendant has been a “funeral provider,” as that term

is defined in Section 453.1(i) of the Rule, 16 C.F.R. § 453.1(i), and has sold or offered to sell

“funeral goods” and “funeral services,” as those terms are defined in Sections 453.1(h) and 453.1(j)

of the Rule, 16 C.F.R. §§ 453.1(h) and 453.1(j).

8. In at least two separate incidents, in connection with selling or offering 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, Defendant has violated the Funeral Rule by failing 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, in

violation of 16 C.F.R. § 453.2(b)(4).

9. In at least two separate incidents, in connection with selling or offering 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, Defendant has violated the Funeral Rule by failing to provide to each

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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, thereby violating 16 C.F.R. § 453.2(b)(2).

CIVIL PENALTIES AND INJUNCTION

10. 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. See also 16 C.F.R. § 1.98(d).

11. Defendant has 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).

12. 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). 

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

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

14. Defendant sells and offers 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.

15. Under Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), this Court is authorized to

issue a permanent injunction enjoining Defendant from violating the FTC Act. 

PRAYER

WHEREFORE, Plaintiff requests that this Court, pursuant to 15 U.S.C. §§ 45(a)(1),

45(m)(1)(A), and 53(b), and pursuant to its own equitable powers:

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(1) Enter judgment against Defendant and in favor of Plaintiff for the violations of the

Funeral Rule and Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), alleged in this Complaint;

(2) Award Plaintiff monetary civil penalties from Defendant for the violations of the

Funeral Rule and Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), alleged in this Complaint;

(3) Enjoin Defendant from violating the Funeral Rule and Section 5 of the FTC Act, 15

U.S.C. § 45; and

(4) Award Plaintiff such additional relief as the Court may deem just and proper.

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Dated: July 15, 2011

OF COUNSEL:

WILLARD K. TOM

General Counsel

C. STEVEN BAKER

Regional Director

JAMES DAVIS

Midwest Region

Federal Trade Commission

55 West Monroe, Suite 1825 

Chicago, IL 60603

Telephone: (312) 960-5634

FAX: (312) 960-5600

Respectfully submitted,

FOR THE UNITED STATES 

OF AMERICA:

TONY WEST

Assistant Attorney General

MAAME EWUSI-MENSAH FRIMPONG

Acting Deputy Assistant Attorney General

Civil Division

U.S. DEPARTMENT OF JUSTICE

PATRICK J. FITZGERALD

United States Attorney

s/ LaShonda A. Hunt 

LASHONDA A. HUNT

Assistant United States Attorney 

219 S. Dearborn Street, Suite 500

Chicago, IL 60604

Telephone: 312-886-4190

LaShonda.Hunt@usdoj.gov

KENNETH L. JOST

Acting Director

Office of Consumer Protection Litigation

ADRIENNE FOWLER

Trial Attorney 

Office of Consumer Protection Litigation

United States Department of Justice

Liberty Square Building, Room 6400

450 Fifth St., NW

Washington, D.C. 20530

Telephone: (202) 514-9471

FAX: (202) 514-8742

Adrienne.E.Fowler@usdoj.gov

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