Ask any 5th Grader when the Inquisition was and
the answer you receive will likely be the 1400’s. And, that would be a correct
answer.
Ask any funeral director in New York City and the answer
will be 2012. Also a correct answer.
More than 25 years ago the Federal Trade Commission created
the “Funeral Rule”. This “Rule” was established to protect consumers against
fraudulent and misleading practices within the funeral industry. Unlike many
other industries the funeral industry is not allowed to be self-governing.
We also need to consider a little thing like “States
Rights”. Without attempting to write a history lesson, basically Federal Laws
are the supreme law of the land, State Laws are those laws not covered by Federal
Law or if they are covered by a Federal Law any State reserves the right to
expand on that Federal Law. The City of New York also (as a local municipality)
has “States Rights” privileges. New York City can expand any State Law and
therefore Federal Laws as well.
Normally this is not a problem. Where issues arise between Federal
laws and State and Local guidelines
generally have to do with air/water pollution. Please don’t chastise me for
over simplifying this, the issue here is the FTC “Funeral Rule” and the one
were the New York City Department of Consumer Affairs (DCA) is flexing it
muscle.
What appears to be going on is this: Employees of the
Department of Consumer Affairs in a misguided attempt to protect consumers have
started a new inquisition. Taking parts of the FTC “Rule” out of context and
attacking Funeral Directors.
I can only guess, but I would say, the DCA received
complaints regarding funeral service, and rather than contact the New York
State Department of Health or going to the Federal Trade Commission seeking
help and guidance, took it upon themselves.to investigate. All too often when
that happens confusion and suspicion and distrust rears its ugly head. The DCA,
without the background and experience of experts, did their own interpretation
of the “Rule”, made what they considered improvements to the “Rule” and sent
out inspectors with little or no training to shop funeral homes for violations
of the law.
Someone at DCA must, at best, suspect that what they are
doing is not right, fair or just and deals are being cut on outrageous fines.
Pay us this now or the fine will be doubled if we need to go to court; and
since there is no possible way of complete victory Mr. Funeral Director is a
loser. It’s cheaper to pay.
The dumbest of the new New York City Regulations is; Funeral
Directors are required to tell prospective clients the cost of their average
funeral for the preceding year.
First the question is: How much is a funeral? If you ask a
funeral director his answer is going to be, the total of his charges PLUS cash
advances. You ask Aunt Millie and her answer is the total of the funeral
directors charges AND the cash advance items combined, because that’s the
amount of money it took to put Uncle Harry in the ground. The fact is, neither
answer is wrong.
Now let’s look at this from the view point of the FTC. The funeral
director is right. But Mr. Funeral Director is dealing with the DCA and while
they acknowledge Cash Advance items DCA is
not telling what you need to base your average funeral on; and since Cash
Advance items can vary greatly and because we are viewing this as the FTC would
Cash Advance items are not being considered.
Now let’s examine the concept of average pricing.
Let’s say you did 100 funeral services last year. Of the 100
funerals, 50 were at $2,000.00. that’s $100,000.00. You did 25 funeral services
at $3,500.00 that’s $87,500.00 and you did 25 funeral services at $4,500.00
that’s 112,500.00. To reach the average you need to add $100,000. plus $87,500.
plus 112,500. That’s $300,000. Now you need to divide that by total number of
funeral services 100. And your average funeral is $3,000. That’s $1,000.00 greater than 50% of the
funeral services you conduct. You are now sublimely suggesting a family spend
$3,000. for a funeral service. Now if you were to do that and the DCA reviewed
you books you might just find yourself guilty of price gouging because the
average you quoted is $1,000. higher than 50 percent of the funerals you
conducted.
What can you do to protect yourself and be in compliance
with the DCA of the City of New York? Pray! Because the New York State
Department of Health can’t help you, it’s not within their jurisdiction. The
Federal Trade Commission can’t help you because it is not within their
jurisdiction. And, your own lawyer is going to tell you to pay the fines
because it is cheaper than trying to fight, “City Hall”:.
