In a notable triumph for consumer protection in California, the Alameda County District Attorney's office, alongside the state's Attorney General and district attorneys from Marin and San Francisco, have secured a $23 million settlement from Service Corporation International, the nation's largest funeral service provider, which operates under the names Neptune Society and Trident Society in the state. As detailed by an announcement from the Alameda County District Attorney's office, the settlement addresses allegations that the company engaged in deceptive marketing and mishandling of pre-need cremation services. Alameda County DA Pamela Price said this settlement addresses financial restitution and mandates future compliance with consumer laws.
The lawsuit hinged on the company's "Standard Plan" sale, which bundled cremation services and merchandise at a single cost. Consumers, drawn in by seemingly competitive pricing, were later presented with separate contracts for services and marked-up merchandise, contradicting the original sale terms. A refund request would result in only a partial return of funds, often less than half of what consumers had paid. According to the law, this maneuver should have seen consumers receiving a full refund for pre-need plans they decided to cancel before services were used, a revealing detail in the Alameda County DA's announcement.
Under the settlement terms, Service Corporation International's Neptune and Trident brands in California have agreed to stop selling the criticized Standard Plan unless all payments, including any for collateral agreements, are fully entrusted as per legal requirements. They will also need to provide transparent disclosures to consumers about their rights under state law, ensure a full refund for cancellations of pre-need agreements, and adhere to lawful advertising practices, especially concerning veterans' benefits. The settlement includes, importantly, over $5.7 million to be paid directly to Alameda County and full consumer restitution for affected customers, as the District Attorney's office reported.
Anchoring Service Corporation International's presence in Alameda County is three Neptune Society locations—in Castro Valley, Livermore, and Oakland—alongside a Trident Society outpost in Fremont and an Oakland-based crematorium. Price stated that the terms of the agreement via the Office of the Alameda County District Attorney to "provide meaningful protections for consumers," underlying the commitment of her office to hold businesses to a standard befitting the trust placed in them by the public.
