Golden State Today

California Attorney General Rob Bonta, in collaboration with the District Attorneys of Alameda and Marin counties, and the city and county of San Francisco, has announced a significant settlement with Service Corporation International (SCI), the nation's largest funeral service provider, operating in California as the Neptune Society and the Trident Society.

The settlement, subject to court approval, addresses allegations that SCI violated consumer protection laws by engaging in false advertising and deceptive acts in its marketing and sale of pre-need cremation packages. Attorney General Bonta emphasized, "Whether in higher education, home insurance, or the funeral service industry, deceptive business practices will not be tolerated."

The settlement includes a $23 million civil penalty, full consumer restitution, and comprehensive injunctive relief. Alameda County District Attorney Pamela Price highlighted that the deceptive practices of Neptune Society and Trident Society affected consumer negotiations and contracts, leading to a penalty that ensures defrauded consumers are compensated.

Marin County Deputy District Attorney Andres Perez expressed relief for California consumers who were impacted by the deceptive marketing practices of SCI, stating that the settlement sends a clear message that consumer protection laws will be strictly enforced in the funeral industry.

San Francisco District Attorney Brooke Jenkins underscored the importance of the settlement in protecting elderly consumers, stating, "Consumer protection statutes must be strictly followed. When they are not, we will not hesitate to take action."

The lawsuit alleged that SCI misled consumers about its pre-need cremation packages, including deceptive marketing regarding trust practices, refund policies, and veterans' burial benefits. One of the focal points was the marketing of the "Standard Plan," which misled consumers with strategically priced packages that did not fully adhere to California law.

Under the terms of the settlement, SCI must comply with stringent injunctive terms, provide clear disclosures to consumers, and offer full refunds upon request for canceled pre-need funeral agreements. The company is also required to cease selling certain packages unless all funds are placed into trust as mandated by California law.

Attorney General Bonta's commitment to protecting California consumers across various marketplaces was highlighted, showcasing previous efforts to safeguard consumer rights in different sectors. The stipulated judgment for the settlement can be accessed for further details.