DC Funeral Costs: Consumer Group Calls on Industry to Fully Disclose Prices

Prices for cremation, burial and funerals vary widely nationally and locally including in Washington, D.C. , according to a study released today by a consumer watchdog group.

The Funeral Consumers Alliance (FCA) and Consumer Federation of America (CFA) released a report based on a national survey of the prices and price disclosures of a representative sample of 150 funeral homes from 10 different regions of the country, including Washington, D.C.

The groups priced three types of services: direct cremation without ceremony, immediate burial without ceremony or the cost of a casket, and full-service funeral including the following items: basic services of the funeral director and staff, transport of the body from place of death to funeral home, embalming, other preparation of the body, viewing or calling hours, funeral ceremony with casket present, hearse to cemetery, sedan or limousine for family, and graveside ceremony.

In Washington, D.C., here are the price ranges for:

• Cremation: $1,295-$7,595
• Immediate Burial: $1,410-$6,800
• Funeral: $3,770-$13,800

Cremation is on the rise; eight years ago, according to the National Funeral Directors Association, cremation counted for 35 percent of “final dispositions.” Other news articles about the rise of cremation services put the figure at 42 percent. Nevada has the highest cremation rate, at 73 percent; Mississippi has the lowest, at 13 percent, according to PBS’ POV.

By some estimates the cost of a funeral has risen 1,328 percent in four decades so that today the average price tag is $8,000 to $10,000, according to a recent article by Investing Daily. This has made traditional funerals less popular.

The average cost of a funeral breakdown, according to PBS documentary in 2013:

• Casket: $2,300
• Funeral Director’s Basic Services Fee: $1,500
• Embalming and Body Preparation: $600
• Funeral Ceremony and Viewing: $1,000
• Miscellaneous (hearse, death certificates, obituary, etc.): $600
• Grave space and cost to dig grave: $2,000
• Headstone: $2,000

Some people shop around--you can even buy your own casket at Costco for less than $1,500.

In the study released Monday, only 38 of the 150 funeral homes (25 percent) across the country in the survey fully disclosed prices on their websites, while 24 (16 percent) failed to fully disclose prices both on their website and in response to an email and a phone call.

“Most funeral homes need to give consumers much better access to price information,” said Josh Slocum, FCA’s Executive Director. “The Federal Trade Commission should update antiquated disclosure rules developed in the pre-Internet 1980s, just as California has successfully done,” he added. For example, California requires funeral homes to disclose on their websites the same prices the FTC requires funeral homes to disclose by phone or in an in-person visit. Thirteen of 15 surveyed California funeral homes fully disclosed prices on their websites.

“The huge price ranges for identical funeral services within individual areas indicate that these markets lack effective competition,” noted Stephen Brobeck, CFA’s Executive Director. “The lack of price competition is unfortunate given the relatively high cost of funeral services and the reluctance of many bereaved consumers to comparison shop for these services,” he added.

The research was undertaken this year by FCA with assistance from its local affiliates in Atlanta, District of Columbia, Philadelphia, Mercer Co. (NJ), Indianapolis, Minneapolis, Denver, Tucson, Orange Co. (CA), and Seattle.

In each of these 10 areas, 15 funeral homes were randomly selected for study, making certain that at least one home from any large chain was included. The researchers searched the websites of these funeral homes for price information. If the website failed to disclose prices completely, the researchers emailed the funeral home for these prices. If the email did not elicit the price information, the researchers phoned the funeral home. In several instances, a researcher visited the funeral home to obtain price information.

Price Disclosures Often Incomplete and Difficult to Obtain

Researchers from the study released Monday examined whether a complete general price list was included on the website of funeral homes. If the funeral homes did not do so, the researchers sent them an email requesting the price information. If the funeral homes failed to respond or responded inadequately, the researchers called them. Despite these efforts by researchers, some funeral homes did not provide any price information or provided this information only in a personal visit.

How Price Information Was Obtained

• Found on Web site: 25 percent
• Provided after an email: 29 percent
• Provided after a phone call: 29 percent
• Provided after a personal visit or could not obtain: 16 percent

The Federal Trade Commission’s Funeral Rule was issued in 1984 and amended in 1994, according to the consumer groups. It requires funeral homes to provide only price information over the phone or a price list to those visiting the home. It does not require disclosure on the websites of funeral homes, they said.

“The FTC needs to require funeral homes to disclose prices clearly and completely on their websites,” said FCA’s Slocum. “This disclosure will greatly increase consumer search for price information. It will also allow journalists, consumer information services, and consumer groups to much more easily research, compare, and report on prices,” Slocum added.

FCA and CFA are submitting this research to the FTC and are urging the agency to update the Funeral Rule.