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Washington Report
November 2004
Virginia State Funeral Board Settles Restraint of Trade Charges With FTC
by Robert M. Fells, Esq., general counsel
The Federal Trade Commission voted in early October to finalize a consent order it had announced during the summer with the Virginia Board of Funeral Directors and Embalmers.
The board agreed to settle charges that it violated federal law and restrained trade by prohibiting funeral directors licensed in Virginia from advertising discounts for preneed funeral plans. The FTC alleged that the board's regulation
"1) deprived consumers of truthful information about prices for funeral services;
2) prevented funeral licensees from disseminating truthful information about the prices;
3) deprived consumers of the benefits of price competition among board licensees; and
4) resulted in some consumers paying higher prices for funeral services than they would have if the regulation had not been implemented."
The board regulation stated in part:"No licensee engaged in the business of preneed funeral planning ... shall advertise discounts; accept or offer enticements, bonuses, or rebates; or otherwise interfere with the freedom of choice of the general public in making preneed funeral plans."
The FTC order bars the state board from prohibiting or restricting truthful price advertising and requires the board to publish the FTC's order on its Web site and in its newsletter, and to deliver a copy to each board licensee. For more information, see the FTC Web page at www.ftc.gov/opa/2004/08/vafuneral.htm.
Copyright ICFA 2004
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