FTC Funeral Rule

Few federal rules reach as deep into a small business’s daily routine as this one. The FTC Funeral Rule decides what a funeral director must hand a family before discussing a casket, what must be said about embalming, and which fees can be mandatory. It has done so since April 30, 1984. For anyone buying or selling a funeral home, it is also a quiet constraint on value, because it limits how the business may earn its revenue. This definition sits in our operations hub.

What does the FTC Funeral Rule require?

Itemized prices, honest disclosures, and no forced purchases, so that a family can buy only what it wants. Nine short sections in 16 CFR Part 453 do the work.

The document-level details are covered on our pages defining the General Price List (GPL) and the Statement of Funeral Goods and Services Selected.

Who does the Rule cover, and who falls outside it?

Any “funeral provider,” which the Rule defines as anyone who sells or offers to sell both funeral goods and funeral services to the public. A business selling only one of the two is generally outside it.

The FTC’s compliance manual, Complying with the Funeral Rule, adds that someone selling preneed contracts on behalf of funeral homes is covered as the provider’s agent, even without providing any goods or services. The Rule also reaches preneed arrangements when they mature: survivors who change the plan or owe more because prices rose must receive the price lists and a new itemized statement.

Two edges matter for buyers. First, the Rule defines a crematory as a business that “performs cremation and sells funeral goods,” so a direct-cremation company selling urns and containers is normally covered. Second, §453.8(c) excludes “the business of insurance,” which is why insurance-funded preneed policies are regulated mostly by state insurance law. State funeral and preneed statutes sit on top of all of it.

Where does Funeral Rule rulemaking stand in November 2026?

Under review, with nothing new adopted. The 1994 text still governs, and online price posting is not required; it is only under consideration from the 2022 advance notice.

The record, in order:

1. February 2020. The FTC opened a routine review of the Rule, which drew 785 comments, according to the agency.
2. October 20, 2022. The Commission voted 4-0 to keep the Rule and seek comment on electronic and online price disclosure.
3. November 2, 2022. The advance notice of proposed rulemaking was published at 87 FR 66096, asking “whether and how funeral providers should be required to display or distribute their price information online and through electronic means.”
4. September 7, 2023. The FTC held a public workshop on the General Price List requirements.
5. January and May 2026. The FTC sought to renew the Rule’s paperwork clearance. The May 14, 2026 notice describes the requirements as a GPL, casket and outer burial container price lists, phone price disclosure, and the itemized statement, with no website requirement.

No proposed rule or final rule has been issued in that span. Anyone telling a seller that federal law now requires posting prices online is wrong today, though a future rule could change that. Our guide to funeral price transparency and value looks at what voluntary online pricing does to a firm’s market position.

How is the Rule enforced?

Mostly through undercover testing, warning letters, and a training program offered instead of penalties. Court cases are rare, but the testing is real.

In June 2020, the FTC reported that 17 of 90 funeral homes visited undercover in five states since 2018 failed to give timely itemized price disclosures. All 17 entered the Funeral Rule Offenders Program, run by NFDA, rather than face possible civil penalties. The agency then ran its first phone sweep. Its November 2024 staff report covered 278 providers and found staff could not get prices after hours from 26% of them.

The FTC’s compliance guide cites penalties of up to $53,088 per violation. That figure is adjusted for inflation, so confirm the current amount with counsel before relying on it.

Why does the Rule matter when a funeral home changes hands?

Because it limits which revenue is legal to earn, and because the buyer takes over the forms and habits on the first day. A price list can be reprinted in an afternoon; a fee the Rule forbids cannot be saved.

For sellers, Funeral Rule documents belong in weeks 7 to 9 of the 90-Day Pre-Sale Sprint, alongside licenses and other compliance records. For buyers, the purchase agreement should carry a compliance representation and an indemnity for pre-closing conduct. Lenders rarely test the Rule directly, but they read complaint histories and want earnings that will not shrink when practices are corrected. The test procedure itself is in our Funeral Rule compliance audit for buyers.

The distinction between a form fix and a revenue fix is where the money is.

Some states bar cash advance markups altogether, so Practice A also needs a state-law check.

What do people get wrong about the Funeral Rule?

Mostly they treat it as a pricing law or a paperwork law. It is neither. It is a disclosure and choice law that sets no prices and tests behavior at the arrangement table.

• “It caps what we can charge.” It sets no price levels. It governs how prices are presented and which charges can be required.
• “Family consent covers embalming.” The FTC guide says noting “family consent” does not state the reason for embalming; the statement should give the reason.
• “The cemetery requires it” is enough. Any legal, cemetery, or crematory requirement cited to a family must be identified in writing on the itemized statement.
• “Federal records go back years.” The Rule’s retention period is one year. State rules and the firm’s own files often reach further, and buyers will ask for them.
• “Compliance carries over automatically.” New owners change software and forms. Our guide to case management software after a sale covers carrying templates across, and our compliance checklist lists the records to keep.