My Opinion: Federal Trade Commission should suspend potential “Funeral Rule” changes

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As my first post of the New Year I find it imperative that I look into the world of Death Care, Funeral, and Cremation business with a perspective of change that is happening all around us.  And, when I look at that change, I think in our Death Care world, as well as the rapid changes in our nation and world in general, the implications are passing the Federal Trade Commission (FTC) and their review of the “Funeral Rule” by.

The “Funeral Rule” was put into law in April 1984 as a mandate for consumers to be able to compare and look at prices of funeral and cremation services without having to commit to those services by a funeral home for a deceased loved one.  It was seen as a much needed tool for consumers in their selection of a funeral/cremation service provider.  The FTC was the regulatory agency that was selected to handle the implementation and enforcement of the rule.

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Tom Anderson
Funeral Director Daily

In my opinion, almost since the very inception of “The Rule” in 1984 it has not done what it was intended to do.  That’s partly because it was complicated in nature and used a Death Care vocabulary of services that the public was not well versed in.  And secondly, almost since its inception, America started turning from a world of funerals to a world of cremations.  I’m not so sure that the FTC saw that coming.

For the record, I’m not against regulation and consumer protection.  But, I’m afraid if the FTC comes up with a final revision of the rule going forward in the near future, they will be in the exact same position  — authors of a rule which is already behind the times.

I say that because consumers purchase things in different ways today. . . .a process that is continually evolving.  And while, at least to me, the FTC has concentrated their review partially on the availability of consumers to see prices on the internet — internet purchasing is only one of the ways that things are changing in the Death Care business.   From what I understand, so much of the FTC’s vision has been focused on website and internet purchasing that they may be missing part of how consumers are buying Death Care services.  (More on that in an upcoming column).

Another reason I suggest a slow-down of any FTC decision is the recent (June 2024) decision by the United States Supreme Court known as the “Chevron” decision.  The ruling “struck-down” an old precedent that gave the FTC much more power in these types of regulations.  That 2024 decision which is defined like this —  “The Chevron doctrine was a 40-year-old Supreme Court precedent that required courts to defer to regulatory agencies when interpreting ambiguous laws” —  probably means that one might question what can the FTC do as to funeral home regulations when there is no clear-cut Congressionally passed law to back their regulations.

Finally, come January 20, 2025, there will be a new Presidential administration in Washington, DC.  If you believe what you read, this administration will be more open to less regulations in business and industry.  Here’s a recent article from Reuters about that titled, “Trump names Andrew Ferguson to head the Federal Trade Commission”.

Again, I’m all for consumer protections. . . . but, with what we now know about the changes in consumer behavior, the Supreme Court “Chevron” ruling, and the change of administration in Washington, DC, I think it would be a mistake for the current FTC to move “full-speed ahead” without acknowledging that if they do, their rule will more than likely be “obsolete” in reality the minute it is printed.

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