What Is the FTC Funeral Rule?

The Federal Trade Commission's Funeral Rule has been a cornerstone of consumer protection in the funeral industry since 1984. It requires funeral providers to give consumers clear, itemised pricing information and prohibits a range of deceptive practices. For decades it remained largely unchanged — but that has begun to shift.

Core Requirements — A Refresher

Even experienced funeral directors benefit from revisiting the Rule's fundamentals, particularly when onboarding new staff or preparing for compliance inspections. Key obligations include:

  • General Price List (GPL): Must be offered in person at the start of any discussion of arrangements, services, or merchandise.
  • Casket and Outer Burial Container Price Lists: Must be provided before showing any merchandise.
  • Statement of Funeral Goods and Services Selected: An itemised written statement must be provided to each family before final arrangements are confirmed.
  • Telephone price disclosure: Staff must provide price information over the phone to any caller who asks.
  • Prohibition on misrepresentation: Funeral providers cannot make false claims about legal requirements, embalming necessity, or container requirements for cremation.

The FTC's Recent Review and Proposed Updates

The FTC periodically reviews the Funeral Rule under its systematic review programme. In recent review cycles, the Commission has examined whether the Rule should be extended to cover online price disclosure — a significant potential change given how many families now begin their funeral research on the internet before ever visiting a funeral home.

Key areas of ongoing regulatory attention include:

  • Online price transparency: Whether funeral homes should be required to post GPL information on their websites.
  • Third-party sellers: Whether the Rule should extend to casket and urn retailers who sell directly to consumers.
  • Preneed funeral contracts: How the Rule interacts with state-regulated preneed trust and insurance arrangements.

Funeral homes operating in multiple states should monitor developments closely, as state-level regulations may impose additional or more stringent requirements beyond the federal baseline.

Compliance Best Practices

Regardless of pending changes, the following practices help funeral homes maintain strong compliance postures:

  1. Review and update your GPL at least annually — and whenever prices change.
  2. Train all client-facing staff on telephone disclosure obligations.
  3. Document that GPLs were offered at the appropriate time during each arrangement conference.
  4. Audit your website to ensure no pricing claims contradict your current GPL.
  5. Consult with your state funeral association for any state-specific overlapping requirements.

Why Compliance Matters Beyond Penalties

Regulatory compliance is not just about avoiding FTC enforcement actions or state board sanctions. Transparent pricing builds consumer trust — a critical currency for funeral homes whose reputation depends on community confidence. Families who feel they were treated honestly are far more likely to recommend a funeral home to others during one of life's most difficult moments.

Funeral professionals are encouraged to stay connected with their state funeral directors associations and the National Funeral Directors Association (NFDA) for timely updates as the regulatory landscape evolves.