December 20, 2000
Consumer protection officials in New Jersey have sued a Pittsburgh company that operates six cemeteries in New Jersey. CMS Mid-Atlantic allegedly told elderly consumers they had won a "free burial space" and then pressured them to buy expensive mausoleums and crypts.
One woman complained that a CMS "memorial counselor" talked her into buying an $11,000 crypt with an eight-year financing plan that cost an additional $7,200.
Typically, CMS sent its "free burial" coupons to older consumers, who were required to meet with a CMS salesperson to redeem the coupon. The salesperson would then use high-pressure sales tactics and even abusive language to discourage the consumers from choosing in-ground burial, the suit charges.
"Under state law, free is free," said Attorney General John Farmer Jr. New Jersey law does not permit attaching any conditions to a promotional scheme that includes a free prize; consumers cannot be required to make any kind of purchase or listen to any kind of sales pitch or presentation to redeem a free offer.
CMS operates cemeteries from Perth Amboy, near Staten Island, to Trenton, the state capital. In 1998, the company entered into a consent agreement restraining it from any deceptive or misleading telemarketing and sales presentations.
