Under the terms of the settlement, in addition to paying the civil penalty, the defendants have agreed to participate in a Funeral Rule training program and to send an itemized written statement of funeral goods and services selected to each consumer who purchased a preneed plan between 1987 and 1989. The FTC's Funeral Rule was promulgated in 1984 and revised in 1994. The rule requires funeral homes to give consumers a copy of an itemized general price list that they can use to comparison shop and to make certain disclosures about funeral goods and services. The rule also makes clear that consumers do not have to buy a package deal. It requires funeral homes to give consumers itemized lists of the goods and services they have selected so that they can be sure they are paying only for the items chosen or for items required by state law.
Copies are available at the address below.
In December 1991, the FTC filed its complaint in federal district court detailing the charges against Restland Funeral Homes, Inc., a subsidiary of Stewart Enterprises, Inc., of Metairie, Louisiana. Finally, the settlement contains various reporting and recordkeeping requirements to assist the FTC in monitoring the defendants' compliance. The FTC's Dallas Regional Office handled this investigation. The Commission vote to authorize filing of the consent decree was 4-1, with Commissioner Mary L. Azcuenaga dissenting. The judge approved the consent decree on Sept. 19.