SAN FRANCISCO (KRON) — The nation’s largest funeral service provider deceived customers in the Bay Area through false advertising and prices, according to the district attorneys of Alameda County, Marin County, and San Francisco.

The funeral company, Service Corporation International, reached a $23 million settlement with the district attorneys and California Attorney General Rob Bonta this week. The proposed settlement provides full restitution to consumers, comprehensive injunctive relief, and $23 million in civil penalties, according to Bonta’s office.

“The pre-need cremation industry has historically been prone to abuse, which is why California law provides robust protection to consumers, many of whom are elderly,” said San Francisco District Attorney Brooke Jenkins.

Funeral services sold by SCI’s companies, Neptune and Trident, allegedly violated the Unfair Competition Law (UCL) and False Advertising Law (FAL).

Pre-need cremation packages are a way for people to pay for their cremation services while they are still alive. California law requires that all money paid for pre-need funeral arrangements be placed in trust until either the beneficiary dies and services are provided, or the consumer cancels the contract, at which point the consumer is entitled to a full refund.

Sold through its Neptune and Trident locations in Bay Area, SCI’s highest-selling pre-need cremation package was marketed as the “Standard Plan.” The plan was allegedly deceptive, and SCI withheld from trusts more than half of the total price.

“SCI typically refunded less than half of a consumer’s money,” Bonta’s office wrote. “This hurt consumers and their families, and allowed the company to artificially inflate its profitability.”

There are three Neptune Society locations in Alameda County: Castro Valley, Livermore, and
Oakland. There is a Trident Society location in Fremont and the crematorium is in Oakland.

“This settlement holds Neptune Society and Trident Society accountable for a practice of using
deceptive price manipulation to defraud consumers and skirt legal obligations requiring them to
place all funds paid for pre-need cremation services and collateral agreements in trust,” said
Alameda County District Attorney Pamela Price.

The company has more locations across the Bay Area. SCI is based in Texas.

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The California Attorney General said consumers should know that they have choices when making funeral or cemetery arrangements. While it is helpful to let your loved ones know your desires regarding burial or cremation, you are not required to prepay for funeral or cemetery services, or to buy a pre-need plan. Providers must be licensed by the state, and state law protects consumers.

Unlicensed Marin County contractors cited for illegally high prices

Under the settlement, SCI agreed to:

• Cease selling the Standard Plan or any similar package unless all money paid for the plan or package and money paid for any collateral agreements is placed into trust.

• Provide clear written disclosures informing consumers of their rights under California law, including that consumers are not required to purchase additional products or services in order to purchase pre-need cremation services.

• Provide a full refund upon request to any consumer who cancels a pre-need funeral
  agreement.

• Comply with California law when advertising veterans’ benefits.

Jenkins said, “This multi-million-dollar settlement should send an unmistakable message to businesses that offer cremation or funeral services: Consumer protection statutes must be strictly followed. When they are not, we will not hesitate to take action.”

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