Grassley said the public meetings, "Funerals, Burials and Consumers," are designed to elicit grass roots input that will enhance his committee work. As chairman of the Special Committee on Aging, Grassley takes on consumer projects of interest to older Americans. He said the funeral and cemetery industries are his latest areas of focus.
"A funeral and burial are among the biggest expenses anyone will ever have," Grassley said. "When people are grieving, they often don't shop around for the best deal the way they would with a new car or house. The federal government recognized this and put forth regulations to protect funeral consumers. A new report suggests that these regulations aren't working. I plan to learn how Iowans view the funeral industry and whether they've had good experiences or not."
The public meetings have been scheduled as follows on Tuesday, Dec. 14, 1999:
10 a.m. to 11:30 a.m. (Central) ? Graphic Arts Technology Center of Iowa 1951 Manufacturing Drive, Clinton
2 p.m. to 3:30 p.m. (Central) ? Heritage Area Agency on Aging Kirkwood Community College 6301 Kirkwood Boulevard SW, Cedar Rapids
Each meeting will feature panelists including a consumer, a funeral home owner, a state regulator and a representative of the AARP. Grassley will serve as moderator. After a panel discussion, Grassley and the panelists will take questions and comments from the audience. They will make available consumer information such as tips for getting the best deal on a funeral and a list of related resources.
Grassley said his interest in the funeral and cemetery industries is twofold. First, he said he has received a significant amount of anecdotal information about consumer abuses in some segments of the funeral and cemetery industry. The anecdotes have come from media reports and consumer groups such as the Funeral and Memorial Societies of America. They involve allegations of pre-need agreements that fail to deliver; pressure tactics to force consumers to buy unnecessary products and services; and escalating prices based on chain ownership.
Second, Grassley requested and last month received a General Accounting Office (GAO) report evaluating how the Federal Trade Commission (FTC) is protecting consumers from unscrupulous funeral providers. The FTC is charged with that responsibility by enforcing the federal Funeral Rule.
The Funeral Rule requires funeral homes to provide an itemized price list before customers buy anything, Grassley said. It prevents funeral homes from billing people for services they do not receive or from charging them for services that are not required by law.
The GAO found that the FTC cannot provide any reasonable assurance of high nationwide compliance with the Funeral Rule. There is no structured process for measuring funeral homes' compliance. The GAO also found that the FTC frequently does not take action when it does encounter violations of the Funeral Rule.
Grassley said the findings are disturbing, considering that 22,300 funeral homes nationwide provide more than two million funerals a year. He said a typical funeral and burial cost $8,000. The Iowa Funeral Directors Association reports 455 members.
Grassley and Sen. John Breaux, ranking member of the Special Committee on Aging, have asked the FTC to explain its lapses in funeral oversight. Grassley and Breaux also announced plans for a committee investigation of consumer issues in this industry and a hearing early next year.
"We want to know how the FTC can assure consumers of fair treatment when they walk into a funeral home," Grassley said. "When consumers shell out thousands of dollars for a service, they should get what they pay for."