Michigan attorney general warns of high funeral prices

"They were taking advantage of the most vulnerable citizens," Kelley said of the funeral homes found in violation of federal rules requiring price disclosure to consumers.

Kelley said the survey, conducted in cooperation with the Federal Trade Commission, the Detroit Consumer Affairs Department and the American Association of Retired persons, found violations of federal rules at seven of 42 funeral homes visited.

They were in the Detroit, Lansing and Grand Rapids area. The homes have 30 days to respond to the findings, or face a $10,000 penalty per violation, officials said.

They said staff from Kelley's office, the FTC and the Detroit agency and volunteers from AARP visited the homes to see if a list of funeral costs, an itemized list of casket prices and a list of burial container prices were provided.

The federal rule requiring such disclose was implemented in 1984 after investigations showed that high-pressure sales tactics were being used to sell unnecessary services.

The seven funeral homes found in violation have the option to enter the Federal Rules Offenders Program, which allows them to make a payment to the U.S. Treasury of state attorney general and enroll in a compliance program- or face possible legal action.

"Every funeral home director has a clear obligation under the federal rule to provide specific, detailed and clear information to consumers," Kelley said. "The required disclosures are designed to assist families and loved ones during the most difficult times of their lives, when they have suffered a devastating loss and are the most vulnerable."

"When planning a funeral, the bereaved must be provided with all of the essential information in a format they can understand easily and can take with them.''

Officials said there were hundreds of funeral homes in Michigan, and refused to name those found out of compliance with federal requirements. They said such names will be released for homes which refuse to come into compliance and which face penalties.

A spokesperson for the Michigan Funeral Directors Association said there was no official available to respond to Kelley's comments. Telephone calls for the state mortician and funeral director licensing board were met with busy signals.

09-09-98