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Bob Davis
Davis Funeral Chapel, Texas Forever Funerals
6428 Brentwood Stair
Fort Worth, Texas 76112
817-319-1522

October 11, 2007

Craig Tregillus
Funeral Rule Coordinator
Federal Trade Commission
Washington, DC

Dear Mr. Tregillus,

I would like to file a formal complaint against SCI and other large corporate funeral chains conducting interstate business here in Texas, and other states as well. I feel they are in violation of the Clayton Act in as much as they are using predatory pricing practices to put me and other small funeral homes and casket stores out of business and give themselves total control of the industry.

We all have printed price lists which we must promptly provide to families when they ask about pricing, either in person or over the phone. I submit that this rule is not being followed by any of the corporate funeral chains, either with service or casket prices. In fact, they refuse to discuss pricing until they know the person is deceased. Then, they ask customers to attend an arrangement conference where prices will be discussed. They also say that they will lower their prices to beat any casket store, or another funeral home.

As a tactic designed to put independent service providers out of business, they say they have “flexible pricing.” They are, of course, careful about to whom this is said.

I know of “secret” meetings at various funeral homes in which staff is told how to avoid getting caught doing this. My brother happened to walk in on one of these at Emerald Hills FH. The predatory pricing practices begin after they are “certain of the family” or have custody of the remains.

Word travels very quickly if they think someone is checking on them. When your people checked last time, everyone at SCI knew days before. I feel there is some link between SCI and your office. I’ve seen enough to know that the funeral industry in Texas is corrupt. What SCI does, the other chains follow.

Enclosed are several newspaper stories by Robert Bryce (Funeral Timeline) which document the history of this corruption in Texas. These are only the tip of the iceberg.

Mr. Waltrip clearly feels that he has a free rein and can do whatever he wants. It appears to me that “his people” are running the Texas Funeral Service Commission. My assistant worked for Mr. Waltrip for years. He told her that he intends to close every casket store and small funeral home in America, no matter what it takes.

I own one of the last casket stores remaining in Texas. The FTC Funeral Rule was enacted to protect the consumer from funeral home abuse, but these guys have nothing but disdain for this.

Representing the Funeral Society of Texas, Inc., I attended a meeting in Dallas in April ’06, along with Jim Bates and others from the Funeral Consumers Alliance. I watched as Janette Gosha of the FTC attempted to physically eject Jim Bates and others from the meeting before it started. During the meeting, I asked why the FTC was ignoring the practice of funeral homes of tying the casket to the funeral service as one package, and charging a penalty if the family chose to purchase it elsewhere. These penalties are often as high as $2000, doubling the price of the service. My question was promptly dismissed and Ms. Gosha proceeded to commend the other funeral homes on their “spotless compliance with the rules.”

Craig, as a Funeral Director and owner of a funeral home I know what is said in hallways and back rooms after these meetings. The only concern these people have is how to circumvent the rules and avoid their enforcement.

After reading the Clayton Act, another question exists regarding the legality of charging customers unjustifiably different prices for the same services or merchandise. My understanding is that everyone must be charged the same price, and that predatory pricing may not be used to put a smaller competitor out of business.

For Example:Family “A” is charged the full listed price for a service ($6000) and the listed price for a casket ($4500) for a total of $10,500. On the same day at the same funeral home, Family “B” tells the funeral director that they checked prices at another funeral home or at a casket store at $1800 for a service and $850 for casket. Family B is then charged $1,700 for the same service and $750 for the same casket for which Family “A” paid $10,500. Family B pays a total of $2,450.

In the above example, the price difference is $8,050 for the exact same services and goods. Family “A” seems to have been overcharged $8,050. In fairness, isn’t Family A due a refund of $8,050? Shouldn’t both families be treated equally? Although presented as an example, the situation I’ve described, including the size of the price discrepancy, is an accurate portrayal of current practice.

Please advise me as to the whether these issues will be properly addressed by the FTC, or would more effectively be dealt with in the context of a Class Action suit on behalf of all affected families in America.

Sincerely,

Bob Davis
Davis Funeral Chapel, Texas Forever Funeral Supply, Funeral Society of Texas, Inc.

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If you purchased a funeral or a casket from a corperate funeral home in the past couple of years you might be able to get a refund of part of your money, you were over-charged. according to FTC’s fair trade laws (Clayton Act) which states that a corperation engaged in interstate business must charge all customers the same prices for goods and services. Also they can not condition the sale of a casket to the sale of a services. Funeral homes have started lowering their prices to wipe out the small family operated funeral homes or casket stores. This means that if you went in to a corp. funeral (like SCI) and told them you saw prices for the graveside service at the small place for $1500 and they were trying to charge $5000 for the same service the corp. would drop their price to match it. So what should happen is the guy who just paid $5000 should get $3500 refund. If you were the poor guy that got charged $5000 You need to have your Atty file to get your money back. A class action lawsuit should be worth billions.

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I never cease to be amazed at the depths some funeral homes sink to to sell their services. Last week, after a couple of families came into my store and told me some stories about what they were being told about what we sell I decided to find out for myself. My wife and one of her friends along with her 5 yo daughter went to Bluebonnet and asked for a price list. First, they wanted to know WHY she wanted a price list. By law you don’t have to have a reason, but she told them she was trying to plan a funeral for her husband.

As if some sort of signal was sent, an elderly grandmother type came out from the back and started hugging and saying “You poor thing, so sad’ complete with a lot tears and crying.  After learning there was no death yet, the tears instantly dried up, her demeaner changed and they were told a pre-need person would be with them shortly.

No one handed them a price list. After being kept waiting about 30 min. someone brought in a contract and wanted them to sign it. No prices yet, just sign here. Again they asked for a price list and were just handed a pre-need planning kit. No prices. So they left. This was several months ago. Several times a week since, almost every day someone calls to see if he has passed away yet. Each time she tells them she needs a price list and they tell her that when she comes in to sign a contract they will discuss prices then.

But meanwhile she was told don’t call any other funeral home and don’t go to a casket store. ( I wonder what they are trying to hide). FTC Funeral Rules state that you must be presented a price list as soon as you ask and must be told prices over the phone if you call.  No exceptions. Phone calls to other funeral homes in the Bluebonnet chain resulted in the same results. No one would give prices.

How can anyone trust funeral homes with a loved one services if they treat you like you are buying a car at a car lot.  Is your loved one a used car? Yesterday, I listened to a radio commercial for Bluebonnet. I couldn’t help but laugh, but at the same time I couldn’t help but feel sorry for anyone that felt moved to respond to it.

Before you go to any funeral home, read the FTC Funeral Rules at their website.  Ask lots of questions, if you don’t get straight, honest answers, go somewhere else until you do. If you wish to file a compliant go here.

Many families come to us for headstones after the services an tell all kinds of stories about how they were treated. They were given a really strong sales pitch (much like a car dealer) and after signing a $10-$15 k contract they felt really empty and drained. They felt like they were hussled through a minimum service. If they dare to complain they are told they should have picked a custom service at a much higher price.

Bottom line is family felt “Handled” and used. This was not the memory they wanted for their loved one, but this was all they could remember about the funeral. Sad………..

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A leading Dallas bankruptcy attorney came to see me last week about a family member and during our conversation she stated that one of the to reasons folks need her service is they are very native about funeral homes. They don’t do any kind of research before they call a funeral home. The biggest reason is “Well, that’s where we own lot’s.” or “They buried Dad.”  Quickly they find out that the’re looking at about $20k by the time it’s all said and done. They don’t look at the many hidden costs as well as the ones up front. Since many families are already over-extended on living day to day a expensive funeral in the mix is fatal. First thing they do is drag out the plastic which most of the time is nearly maxed out and at a high interest rate thinking there will be help from above in paying it off which never comes. Then a couple of months later reality sets in. That’s when the rest of the family, they thought they had to impress, really didn’t care or much less offer to help. They all went back to home and forgot about the whole thing. All they really want to know is if they are in the will. That’s when higher utility bills show up and gas goes up a buck a gallon, food takes a big jump at the grocery store, your company cuts back because business is slow because no one else has money to spend for the same reasons, or there’s a new war somewhere and the government lied to us about it and we can’t take care of our own problems here at home.

A few simple phone calls researching prices, just the same as you would do for any major purchase would be wise. Ask questions, and above all don’t buy the “Package”. That is something of a joke in the funeral homes. When you fall for that they know you’re a easy mark because you don’t think. “The path of least resistance.” (For now) is easily the road to ruin. No amount of money you spend at a time like this is going to change anything, just be respectful but not stupid. The funeral home wants to get you in to make the arrangements as soon as possible because they know if you are grieving you will spend more. Folks that wait a day before making arrangements spend a whole lot less. The funeral home will, however, try to drag you in within hours of the passing. The slogan of the day is “If they’re crying, they’re buying! When the tears dry up so does the checkbook”. Spend your time purchasing the merchandise you need so they can’t use that as a tool against you. Then when you get that behind you, you can concentrate on the service part with a clear head and negotiate that to a price you can live with. everything is negotiable if you take their tools away. Cremation is on the up-rise. According to state figures 160,000 deaths in Texas last year, 45% was cremation that leaves 1600 funeral homes to fight over 88,000 bodies. So to pay the lifestyle they want to keep, you have to pay, and pay, and pay. They’re willing to deal……..you have the upper hand. Play it.

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The idea of tissue donation is a great thing. It can help so many folks that need help, but it seems greed is the bottom line for the industry. As soon as someone passes away in a hospital the family is contacted by a repesentave of a harvesting company. This happens so fast you might get the impression they live at the hospital and were waiting outside the door. They assure the family that a viewing will still be possiable and things are easly fixed and it won’t cost any extra from the funeral home. Soon as you sign on the bottom line the whisk the body away and start to work. Once they have it they take eyes, bones  (arm, leg and whatever else they think they can use), internal organs, skin and tissue, anything else they think is marketable. Then they give everything else to the funeral home in a plastic bag to try to put back together for the family to deal with. Unfortunatly this costs to have skilled people to re-assemble what’s left into something presentable for the family. The funeral home must pass the cost to the family since this is not part of a normal service. This can be quie costly.This is not fair to a family that is trying to do the right thing to help someone in need.

These people make a fortune off the sale of these parts, sometimes as much as $100k off one person. They don’t care what they have to do or say to get what they want. It’s all about the $$$$$. I feel that the harvesting company should pay the funeral cost of the deceased. A standard service or cremation is a small price to pay for the huge profits they gleam from the bodies the mutilate and walk away from. Out of respect for the gift that person has given them, that seems to be a small return. I would support any legal action to make this law.

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