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, 

. Plaintiff, 

v. 

HARRISON FUNERAL HOME, INC. and 

JOHN BALSAMO, 

Defendants. 

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COMPLAINT 

12 Civ. _____ _ 

JUDGE RAMOS 

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

for the Southern District of New York, acting upon notification and authorization to the Attorney 

General by the Federal Trade Commission ("Commission"), alleges for its complaint against 

Harrison Funeral Horne, Inc. and John Balsamo upon information and belief as follows: 

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 

Defendants' 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 over this matter under 28 U.S.C. 

§§ 1331, 1337(a), 1345, and 1355 and 15 U.S.C. §§ 45(m)(l)(A), 53(b), and 56(a). This action 

arises under 15 U.S.C. § 45(a)(I). 

3. Venue is proper in this district under 15 U.S.C. § 53(b) and 28 U.S.C. §§ 1391(bc) 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)(I)(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 such section 5(a)(I))," and 

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

DEFENDANTS 

5. Defendant Harrison Funeral Home, Inc. ("Harrison") is a New York corporation 

with its principal place of business located within the Southern District of New York at 329 

Halstead Avenue, Harrison, New York 10528. In connection with the matters alleged herein, 

Harrison is located in or transacts business in this District. 

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6. Defendant John Balsamo ("Brusamo") is the President and an owner of Defendant 

Harrison. His business addr~ss is the same as that of the corporate defendant. At all times 

material to this complaint, acting alone or in concert with others, Defendant Balsamo has 

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

practices of Defendant Harrison, including the various acts and practices set forth in this 

complaint. In connection with the matters alleged herein, Defendant Balsamo transacts or has 

transacted business in this District. 

THE FUNERAL RULE 

7. 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 

8. At all times material herein, Defendants have 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 have sold or offered to 

3ell "funeral goods" and "funeral services," as those terms are defined in Sections 453.1(h) and 

l53.lO) of the Rule, 16 C.F.R. §§ 453.1 (h) and 453.10). 

9. . In 2001, in connection with selling or offering to sell funeral goods and funeral 

;ervices, in or affecting commerce, as "commerce" is defined in Section 4 of the FTC Act, 15 

J.S.C. § 44, Defendants violated the Funeral Rule by failing to provide to each person who 

nquires in person about funeral goods, funeral services, or prices of funeral goods or services a 

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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, 

thereby violating 16 C.F.R. Part 453.2(b)(4). 

10. In 2001, 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, Defendants violated the Funeral Rule by failing 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, thereby violating 16 C.F.R. § 453.2(b)(2). 

11. In conjunction with FTC Funeral Rule enforcement efforts, the National Funeral 

Directors' Association ("NFDA") developed the Funeral Rule Offenders Program ("FROP"). In 

lieu of formal law enforcement actions, the FTC may offer participation in FROP to funeral 

industry members identified as failing to comply with the Funeral Rule, 16 C.F.R. Part 453. 

After a participating funeral home makes a required payment to the United States Treasury, 

NFDA examines the adequacy of the home's general price list, casket price list and outer burial 

container price list and trains all employees of the funeral home who are engaged in the offering 

or selling of funeral goods and services. 

12. In 2001, Defendants Harrison and Balsamo agreed to enter FROP and submitted 

the required payment to the U.S. Treasury. Although Defendants agreed to enter FROP in 2001, 

they never participated in the FROP training on how to comply with the Funeral Rule. 

13. In March and July 2010, 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 

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the FTC Act, 15 U.S.C. § 44, Defendants 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, thereby violating 16 C.F.R. Part 453.2(b)(4). 

14. In March and July 2010, in connection with selling or offering to sell funeral 

goods and ftmeral services, in or affecting commerce, as "commerce" is defined in Section 4 of 

the FTC Act, 15 U.S.C. § 44, Defendants violated the Funeral Rule by failing 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, thereby violating 16 C.F.R. § 453.2(b)(2). 

15. In March 2010, 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, Defendants violated the Funeral Rule by failing to provide to each person 

who inquires in person about the offerings or prices of outer burial containers a printed or 

typewritten outer burial container price list, upon beginning discussion of, but in any event 

before showing, outer burial containers, thereby violating 16 C.F.R. § 453.2(b)(3). 

CIVIL PENAL TIES AND INJUNCTION 

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

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

18. 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)(I) 

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

19. 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." 

20. 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. 

21. Under Section l3(b) of the FTC Act, 15 U.S.C. § 53(b), this Court is authorized to 

issue a permanent injunction enjoining defendants 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: 

(1) Enter judgment against defendants 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 Defendants for the violations of the 

Funeral Rule alleged in this Complaint; 

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

15 U.S.C. § 45; and 

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

Dated: New York, New York 

May 8, 2012 

By: 

FOR THE FEDERAL TRADE COMMISSION: 

WILLARD K. TOM 

General Counsel 

WILLIAM H. EFRON 

Acting Regional Director 

Northeast Region 

Robin E. Eichen 

Attorney 

Federal Trade Commission 

1 Bowling Green 

Suite 318 

New York, NY 10004 

(212) 607-2829 (Office) 

(212) 607-2822 (Facsimile) 

7 

PREET BHARARA 

United States Attorney for the 

Southern District of New York 

At~rney for the United Sta~es 

. 

l)ah{~Q NATALIEN. KUEHLER /U W~· Assistant United States Attorney 

86 Chambers Street, 3rd Floor 

New York, NY 10007 

Telephone: (212) 637-2719/2741 

Facsimile: (212) 637-2650