Why did the FTC create the Trade Regulation Rule on Funeral Industry Practices?

The Federal Trade Commission (FTC) created the Trade Regulation Rule on Funeral Industry Practices primarily to counteract abuses within the funeral industry. This rule, which is commonly known as the Funeral Rule, was established to protect consumers from unfair and deceptive practices that had been prevalent in the industry.

Prior to the implementation of this rule, many consumers faced a lack of transparency regarding pricing, were subjected to high-pressure sales tactics, and often weren’t provided with necessary information about their options. The rule mandates that funeral homes provide detailed price information and a variety of choices concerning funeral services. This way, it ensures that consumers can make informed decisions without facing undue pressure or confusion.

While promoting lower costs and standardizing services may be associated outcomes of this regulation, the primary goal was to address and reduce the abusive practices that consumers were experiencing in the funeral market. This focus on consumer protection and ethical practices underscores the importance of transparency and respect in the sensitive context of funeral services.