Washington ( CNN ) -- An undercover investigation by the Federal Trade Commission found funeral homes nationwide deceived customers into making purchases they were n't required to make and failed to give up-front pricing to customers . Undercover FTC agents posing as customers found `` significant violations '' in 23 of the 102 funeral homes investigated , according to the FTC . Operators violated key provisions of the `` Funeral Rule , '' a 1984 regulation the FTC put in place to prevent funeral home operators from forcing customers to buy caskets or any other item as a condition of paying for a funeral . Another provision of the rule requires funeral homes to provide an itemized price list during the first in-person funeral arrangement meeting . Nationally , Richmond and Fredericksburg , Virginia had the highest number of funeral homes found with significant violations , according to the FTC 's report . Eight of the 19 funeral homes investigated in the two cities committed significant violations . Columbia , South Carolina , was next with five significant violations out of 10 funeral homes inspected . Thirty-three funeral homes had what the FTC called minor compliance issues . In those cases , the FTC contacted the funeral homes and required proof they were addressing violations . The FTC gives funeral homes an opportunity to right their wrongs before they 're hauled into court . A three-year program run by the National Funeral Directors Association gives participants extra training and additional compliance monitoring . Funeral homes that participate are allowed to make a payment to the U.S. Treasury in place of a civil penalty . Civil penalties can be up to $ 16,000 per violation , according to the FTC . Jessica Koth of the National Funeral Directors Association says the `` NFDA takes compliance with the Funeral Rule seriously . '' Koth says the organization encourages members to meet all obligations . Since the annual undercover stings began in 1996 , the FTC said investigators have found fewer than 400 funeral homes with significant violations . There are 19,680 funeral homes in the United States , according to the NFDA . FTC inspections during 2011 encountered varying levels of compliance : . -- In northwestern Indiana , one of 12 funeral homes inspected had significant violations ; . -- In Maui , Hawaii , none of the four funeral homes inspected had significant violations ; . -- In the New York City area , as well as parts of Connecticut and New Jersey , one of 22 funeral homes inspected had significant violations ; . -- In Cleveland , four of 16 funeral homes inspected had significant violations ; . -- In Columbia , South Carolina , five significant violations were found in 10 funeral homes inspected ; . -- In Austin , Texas , four of 19 funeral homes inspected had significant violations ; . -- In Richmond and Fredericksburg , Virginia , eight of 19 funeral homes inspected had significant violations .
'Significant violations ' found in 23 of 102 funeral homes investigated . Score: 6 Richmond and Fredericksburg , Virginia , had the highest number of offenders . Five of 10 funeral homes in Columbia , South Carolina , had significant violations .