accc.gov.au
December 2021
Competition and consumer issues
Funeral services
sector
Australian Competition and Consumer Commission
23 Marcus Clarke Street, Canberra, Australian Capital Territory, 2601
© Commonwealth of Australia 2021
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Important notice
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ACCC 12/21_21-50
www.accc.gov.au
iii
ACCC Funeral services sector report
Contents
Executivesummary 
Understandingcompetitionandconsumerissuesinthesector 
TheACCCsurvey 
Funeralsectorprofile 
Industrysnapshot 
Costoffuneralservices 
Regulationofthefuneralservicessector 
Recentregulatorydevelopments 
KeyissuesidentifiedintheAustralianfuneralservicessector 
 Pricingoftenlacksclarityandtransparencyandmaymisleadconsumers
 Somestandardformconsumercontractscontainpotentiallyunfaircontractterms
 Claimsaboutbeing‘local’funeralbusinessesmaymisleadconsumers 
 Inadequaterecord-keepingaboutpre-paidfuneralproductsandservices
harmsconsumers
 Non-disclosureofpaidthird-partyendorsementscanmisleadconsumers 
 Bundlingortyingthatlimitsconsumers’accesstofuneralproductsorservices 
Addressingcompetitionandconsumerissuesinthefuneralservicessector 
ACCC Funeral services sector report
Executive summary
ThedeathofafriendorfamilymemberisatimeofconsiderabledistressForthosearrangingafuneral
thesecircumstancescanimpacttheirusualdecision-makingabilitiesFuneralprovidershavean
importantroleinguidingconsumersthroughthisprocess
FollowingtheACCC’srecentprioritisationofcompetitionandconsumerissuesinthefuneralservices
sectorwehavereviewedreportsreceivedfromconsumersandconductedasurveyofconsumersand
businessesidentifyingsixkeyissuesofconcern
Pricingoftenlackstransparencyandclarityandmaymisleadconsumersforexample
whereprovidersdonotadviseconsumersofallthecostsassociatedwiththeirservices
orlabelsomechargesinawaythatsuggeststheyaremandatorywhenthatisnot
thecase
Somestandardformconsumercontractscontainpotentiallyunfaircontractterms
includingexcessiveinterestratesorlatefeesforoverdueaccounts(aninterestrate
orfeemaybeconsideredexcessiveifitisnotreferabletothecostofrecoveringlate
payments)
Claimsaboutbeing‘local’funeralbusinessesmaymisleadconsumers(where
businessesareinfactsubsidiariesoflargercorporations)
Failingtofulfilpriorcommitmentsregardingprepaidfuneralproductsandservices
harmsconsumerswhomaystruggletoenforcetheircontractualrightsandmayeven
beaskedtomakeunexpectedadditionalpaymentstothefuneralbusiness
Non-disclosureofpaymentsinreturnforthird-partyendorsementsfromcomparison
websitesorhealthserviceproviderscanmisleadconsumersandmayhavea
detrimentalimpactonthebroadercompetitiveprocess
Bundlingortyingthatlimitsconsumers’accesstofuneralproductsorservicesand
mayrestrictcompetingbusinesses’accesstocustomers
TheACCChasalreadytakenenforcementactioninrelationtosomeoftheseissuesincluding
InMarchWTHowardFuneralServicesandCoventryFuneralHomestradingasFitzgerald’s
FuneralseachpaidapenaltyofaftertheACCCissuedbothbusinesseswithinfringement
noticesforallegedlymakingafalseormisleadingrepresentationabouttheirownership
InSeptemberAlexGowFuneralspaidapenaltyofaftertheACCCissuedan
infringementnoticeforanallegedfalseormisleadingrepresentationaboutthepriceofitsfuneral
servicesandthefeesthatconsumersarerequiredtopayAlexGowFuneralshasalsoamendedits
invoicestoensuretheyaccuratelydescriberelevantfees
InNovemberBareFuneralGrouptradingasBareCremationpaidapenaltyofafter
theACCCissuedaninfringementnoticeforallegedlymakingafalseormisleadingrepresentationon
itswebsiteaboutthe‘minimumprice’forcremationonlyandmemorialservicesincircumstances
wherethesepriceswerenotavailableinthemajorityofgeographicregionswherethecompany
operatedorforthevastmajorityofconsumers
ACCC Funeral services sector report
TheACCCcontinuestoinvestigateotherfuneralbusinessesandwilltakeadditionalenforcementaction
whereappropriate
ToavoidcontraveningtheCompetitionandConsumerAct(CCA)andtheAustralianConsumer
Law(ACL)theACCCstronglyencouragesbusinessesinthesectortoconsidertheseissuesand
reviewtheir
promotionalmaterial
internalprocessessuchasstatrainingmanualsandsalespersons’scripts
templatedocumentssuchasquotescontractsandinvoices
ACCC Funeral services sector report
Understanding competition and consumer
issues in the sector
TheACCCgatheredtheinformationanalysedinthisreportfromavarietyofsourcesincluding
anonlinesurveywhichtheACCCconductedinMarchandApril(thesurveyinvitedconsumers
andindustryparticipantstoshareinformationabouttheirexperiencesinthefuneralservicessector–
seebelowforfurtherinformation)
consumerandindustryassociations’responsestotheACCC’sMarchvoluntaryinformation
requestswhichsoughtadditionalinformationabouthowthesectoroperates
informationanddocuments(includinganumberofstandardformcontracts)whichwerereported
totheACCC’sInfocentrebyvariousexternalstakeholders
informationobtainedduringtheACCC’srecentenforcementinvestigations
andcasestudiesabout
ACCCenforcementoutcomes
The ACCC survey
InMarchandApriltheACCCconductedanonlinesurveytoobtaininformationaboutthe
experiencesofconsumersandbusinesseswiththefuneralservicessectorThesurveyinvitedindividuals
whohadexperiencearrangingafuneralworkedinthefuneralsindustryandotherinterested
individualstoansweraseriesofquestionsabouttheirexperiencesFigurebelowoutlinesthenatureof
respondents’interestintheACCCsurvey
Figure 1: Survey responses – respondents’ interest in the survey
1%
4%
11%
12%
72%
0% 10% 20% 30% 40% 50% 60% 70% 80%
I work in a crematoria
or cemetery
I work in a business that
supplies goods or services
to funeral homes
I work in a funeral home
I have general comments
or concerns
I arranged, or helped
to arrange, a funeral
Source ACCCconsumersurveyretheFuneralServicesSectorMarchn
Asillustratedinfigureabovemostsurveyresponseswerefrompeoplewhoarrangedorhelped
arrangeafuneralThemajorityofresponseswerefrompeoplelocatedinQueenslandNewSouth
WalesandVictoria
 TheACCCnotesthatinformationprovidedtotheACCCpursuanttostatutoryinformationpowersundersection()(a)
oftheCCAwasnotreproducedorotherwiserelieduponforthepurposeofthisreport
ACCC Funeral services sector report
Funeral sector profile
Industry snapshot
MostAustralianswillhavetoorganiseatleastonefuneralintheirlifetimeswithdemandforfuneral
servicesreasonablysteady(beinglinkedtothenumberofdeathsinAustraliaeachyear)
Twopubliclylistedcorporationsaccountforalmostonethirdoftheindustry
$1.6 billion
Total expected industry
revenue in 2020–21
InvoCare
incl. White Lady Funerals,
Simplicity Funerals and
Value Cremations
traditionally focussed on
regional areas
Typically small
family-run
businesses
Propel
6%
26%
Cost of funeral services
Thecostofafuneralservicecanvarysignificantlydependingontheproductsandservicesthatare
includedtheceremony’slocationandwhethertheserviceismarketedas‘premium’orbudget
CremationhasbeensteadilygrowinginpopularitythroughoutAustraliapartlyduetochanging
religiouspracticesbutalsobecauseitissignificantlycheaperthanburialCremationisreportedtobe
thepreferredoptionfortwo-thirdsoffuneralservicesinAustralia
A simple, no service cremation may
cost as little as $4,000. A full service
burial may cost up to $20,000.
ACCC Funeral services sector report
Regulation of the funeral services sector
Businesseswithinthefuneralservicesindustrylikeotherserviceprovidersaresubjecttoarangeof
legalobligationsincludingthecompetitionandconsumerlawscontainedwithintheCCAandACL
Thefuneralservicessectorisalsosubjecttoarangeofindustry-specificregulationswithineachstate
andterritorywhichareforthemostpartenforcedbyeachjurisdiction’sconsumerprotectionorfair
tradingorganisationForexample
WesternAustraliaistheonlystatethatrequiresfuneraldirectorstobelicensed
Victoriarequirestheregistrationofbusinessesthatprovidefuneralservicesbutnotindividual
funeraldirectors
NewSouthWalesandVictoriarequirefuneralproviderstodiscloseanddisplayitemisedpricelists
foreachoftheirservices
QueenslandWesternAustraliaandtheAustralianCapitalTerritoryhavemandatorycodesof
conductwithvaryinglevelsofrequirementsandenforceability
Consumersmayconsidera‘licensed’funeraldirectortohavesuperiorservicesorexpertisewhen
comparedwithan‘unlicensed’competitorForthisreasonfuneraldirectorsshouldavoidpromoting
themselvesas‘licensed’unlesstheyoperateinajurisdictionwherethisisarequirementieWestern
Australia(asatthedateofthisreport)
Recent regulatory developments
InNewSouthWalestheIndependentPricingandRegulatoryTribunal(IPART)hasconcludedtwo
reviewsregardingthefuneralservicessector
InNovemberIPARTreleaseditsReviewoftheCostsandPricingofIntermentinNSWfinal
report
Thereportrecommendedcertainreformstotheintermentindustryaimedatdelivering
pricesthatareaordableandequitablefinanciallysustainableforcemeteriesandtransparent
forconsumers
InAugustIPARTreleaseditsReviewofCompetitionCostsandPricingintheNSWFuneral
Industryfinalreport
ThereportfoundthatwhiletheNSWfuneralsandcrematoriamarketsare
workablycompetitiveconsumersoftenfindtheprocessoforganisingafuneralconfusingThe
reportrecommendedthatNSWFairTradingensurethatallfuneralproviderscomplywiththe
existingregulationandcertaincomplementaryimprovementstofuneralinformationongovernment
websitessothatrelevantinformationismorecomprehensiveconsistentandaccessible
InMarchWesternAustraliaintroducedamandatorycodeofpracticeforprepaidfunerals
The
codeaimstoensurethatfundsforfuturefuneralsareheldbyspecifiedinvestmentmanagersand
managedwithinsecureinvestmentsunderthenameoftheclientuntiltheyarerequiredThemandatory
codealsorequiresthecontracttodetailallgoodsandservicestobeprovidedincludingtheindividual
costofeachcomponentandanyfeestobeincluded
InAugusttheQueenslandDepartmentofJusticeandAttorney-Generalreleasedanoptions
paperonfuneralpricetransparency
Theoptionspaperstatesthat‘Funeralpricetransparencyis
intendedtoensurepricesforgoodsandservicesarebetterdisclosedandcanbecomparedwith
alternativeswithouttheneedinitiallytoobtainaquote’
Consultationaboutnextstepsclosedon
Octoberandresponseswerestillbeingconsideredwhenthisreportwaspublished
 IPARTFinalReport-ReviewofInternmentCostsandPricesNovember
 IPARTFinalReport-CompetitionCostsandPricingintheNSWFuneralIndustryAugust
FairTrading(PrepaidFuneralsCodeofPractice)Regulations(WA)
 QueenslandDepartmentofJusticeandAttorneyGeneralOptionsPaper-FuneralPriceTransparencyAugust
 QueenslandDepartmentofJusticeandAttorneyGeneralOptionsPaper-FuneralPriceTransparencyAugust
ACCC Funeral services sector report
Key issues identified in the Australian
funeral services sector
1 Pricing often lacks clarity and transparency and may
mislead consumers
TheACCC’srecentinvestigationsandnumerouscomplaintsfromconsumersandotherindustry
stakeholdersindicatealackofclarityandtransparencyinpricinginformationprovidedbysome
businessesinthesector–particularlypricinginformationprovidedbyfuneraldirectors
ThefollowingcommentsinresponsetotheACCCsurveyareexamplesofconsumerconfusionabout
pricinginformationsuppliedbysomefuneralbusinesses
‘PricinginformationwasnotreadilydisplayedandIhadtophoneeveryproviderforinformation
soIcouldevaluatethemagainsteachotherTheoptionswerenotthesameandwerenoteasy
toevaluateIhadtoaskforitemisedpricesandtoconfirmwhatwasincluded’
Source funeralservicesconsumerACCCsurvey
‘TherewereextracostsinvolvedinthepricethatappearedontheinvoiceWhenthefuneral
homewasquestionedtheysaidthatwasthepriceaftersomenegotiationstheyprovideda
smalldiscount’
Source funeralservicesconsumerACCCsurvey
Consumersmaybemisledwhereprovidersdonotincludeallrelevantfeesandchargesthatformpart
ofthetotalamountpayableforthatservice
BoxPricingclarityandtransparency
TheACCC’sanalysisofconsumercomplaintsstandardformcontractsandothermaterials
obtainedduringinvestigationssuggeststhatmanyprovidersfailtoadviseconsumersofallthe
costsassociatedwiththeirservicesormaylabelsomechargesinawaythatsuggeststheyare
mandatorywhenthatisnotthecaseMorespecificallytheACCCisconcernedthatcertain
funeraldirectorsmayhave
failedtoincludeGSTinpackagepricesandalsofailedtoprovidethefinalpriceinaclear
manner
failedtoincludeallapplicablefeesthatarerequiredtoconductafuneralservice–suchas
burialorcremationpermitsdeathcertificatesandotheradministrativefees
inappropriatelyadvertisedapriceforproductsorservicesonanationalorstate-widebasis
despitethatpriceonlybeingavailabletoa(limitednumber)ofconsumersinaspecific
geographiclocation
inappropriatelylabelledlatepaymentfeesas‘estatefees’whichinaccuratelysuggeststhat
thefeeisamandatorycostassociatedwiththeprovisionofthefuneralandcremationservice
whenitisinfactapenaltyforlatepayment
ACCC Funeral services sector report
Figureillustratestheapproximatetimingoffuneralhomes’disclosureofpricinginformation
toconsumers
Figure 2: Timing of pricing information disclosure to consumers
4%
9%
15%
30%
43%
0% 10% 20% 30% 40% 50%
When you received the invoice
After the first meeting but
before the day of the funeral
Before your first meeting with
the funeral home (for example,
online or in a brochure)
At your first meeting with the
start of the meeting
At your first meeting with the
funeral home – towards the
funeral home – towards the
end of the meeting
Note Figuresmaynotaddupduetorounding
Source ACCCconsumersurveyretheFuneralServicesSectorMarchn
Figurerevealsthatthemajorityofconsumers(approximately)reportedreceivingpricing
informationduringtheirfirstmeetingwiththefuneralproviderHoweverofconcerntotheACCC
approximatelyofrespondentsreportedonlyreceivingthisinformationaftertheirfirstmeetingwith
thefuneraldirectororwhentheyreceivedtheinvoiceitself
TheACCCconsidersthatinmostcircumstancesthelatestthatpricinginformationshouldbe
providedwouldbeoncethefuneraldirectorhasdevelopedanunderstandingofwhattheconsumer
isseeking(egduringtheirfirstsubstantivediscussionormeetingwiththeconsumer)Whilethis
estimatemaybeupdatedasfuneralplansprogressconsumersshouldbeprovidedpricingassoonas
reasonablypossible
Iffuneralbusinessesdonotknowwhattheunavoidablecostsmaybeforaparticularfuneralatthe
timeaquoteisrequestedthebusinessshouldgiveconsumersanestimateorrangebasedontheir
experienceinprovidingthatservice
Therelativeresponsivenessoffuneraldirectorstoconsumerrequestsforpricinginformationwasalso
highlightedbytheACCC’ssurveyseefigurebelow
ACCC Funeral services sector report
Figure 3: How pricing information was disclosed to consumers
5%
5%
8%
25%
56%
0% 10% 20% 30% 40% 50% 60%
I asked multiple times
I didn’t receive pricing
information until I received
the contract or invoice
Other
I asked once
It was provided
without asking
Note Figuresmaynotaddupduetorounding
Source ACCCconsumersurveyretheFuneralServicesSectorMarchn
Figurerevealsthatapproximatelyofsurveyrespondentshadtoaskonceormultipletimesfor
pricinginformationtobedisclosedandaroundofsurveyrespondentsadvisedtheydidn’treceive
pricinginformationuntiltheyreceivedthecontractorinvoiceItappearsthatonlyaroundofsurvey
respondentswereprovidedpricinginformationwithouttheneedtofirstrequestit
TheACCCconsidersthatalackoftransparencyinpricingfromfuneralservicescompaniescanmake
itdicultforconsumerstounderstandandcomparepricesandinclusionsforproductsandservices
–andevenhardertocomparedierentprovidersThisisparticularlyrelevantinthefuneralservices
sectornotingthatthe‘lossofalovedoneisatimeofgriefandvulnerabilityoftenaccompaniedbyan
impairedabilitytomakeinformeddecisionswithinashortperiodoftime’
BoxCasestudies–allegedfalseormisleadingpriceclaimsinthe
funeralsector
AlexGowFuneralsInSeptemberAlexGowFuneralspaidapenaltyofafterthe
ACCCissuedaninfringementnoticeforanallegedfalseormisleadingrepresentationaboutthe
priceofitsfuneralservicesandthefeesthatconsumersarerequiredtopayAlexGowFunerals
hadapracticeofincludingafeereferredtoasan‘EstateFee’ininvoicesitissuedtoconsumers
forfuneralservicesdespiteitbeingapenaltythatwasonlytobeappliedifthecustomerdidnot
paytheinvoiceontimeAlexGowFuneralshasamendeditsinvoicessothatitnolongerrefersto
anEstateFeeandinsteadreferstoaLatePaymentFee
BareCremationInNovemberBareFuneralGrouptradingasBareCremationpaida
penaltyofaftertheACCCissuedaninfringementnoticeforallegedlymakingafalse
ormisleadingrepresentationonitswebsiteaboutthe‘minimumprice’forcremationonlyand
memorialservicesincircumstanceswherethesepriceswerenotavailableinthemajorityof
geographicregionswherethecompanyoperatedorforthevastmajorityofconsumersBare
Cremationrepresentedonitswebsitethatthepricefora‘CremationOnlyService’was‘from
’andthepricefora‘BareMemorialService’was‘from’buttheACCCallegedthat
thesepriceswereonlyavailableinoneoftheseventeenregionsthecompanyoperatesinBare
Cremationhasamendedthedescriptionsonitswebsitetoaccuratelyreflectthepricingavailable
indierentregions
 SVanDerLaanandLMoermanIt’syourfuneralAninvestigationofdeathcareandthefuneralindustryinAustralia[PDF]
UniversityofSydneyBusinessSchoolp
ACCC Funeral services sector report
Businessesshouldalsobeawarethatincertaincircumstancesiftheytakeadvantageofvulnerable
consumersforexamplebyundulypressuringconsumerstopurchasemoreexpensiveproducts
orservicesorinflatingthepriceofservicesbeyondwhatwasagreedthenthismayconstitute
unconscionableconductwhichisprohibitedbytheACL
TheACCCconsidersthatfuneralservicescompaniesshouldreviewhowtheypresenttheirpricing
informationandensureitisasclearandtransparentasreasonablypossibleInparticulartheACCC
considersthatfuneralcompaniesshouldupdaterelevantpromotionalmaterialto
ensurethatanyadvertisementsfeaturingpricinginformationareinclusiveofallapplicablefeesand
taxes(includingGST)andanyotheressentialunavoidablecoststhatarelikelytoapply
limitanypromotionsaboutlocation-specificpricingtothegeographicareasinwhichthose
oersapply
InadditiontheACCCencouragesfuneralcompaniestoupdatetheirbusinessprocesses(including
trainingmanualsandsalespersons’scripts)andtemplatedocuments(includingquotescontractsand
invoices)toensurethatpriortoeveryfuneralbusinesses
informconsumersaboutwhatis–andisnot–legallyrequiredtoprovideafuneralservice
provideconsumerswithitemisedpricelistsinwritingandassoonasreasonablypossibleduringany
discussionswithconsumers
provideconsumerswithanitemisedquote(ieonceagreementhasbeenreached)thatliststhefull
priceofthefuneralinclusiveofGSTandotherapplicabletaxesandchargesandprovideconsumers
withcopiesofcontractualdocuments
2 Some standard form consumer contracts contain
potentially unfair contract terms
TheACCC’srecentinvestigationsandnumerouscomplaintsfromconsumersandotherindustry
stakeholdersindicatesthereareissueswithunfaircontracttermsincertainstandardformcontracts
thatareroutinelyprovidedtoconsumers
ResponsestotheACCCsurveyhighlightedpotentiallyproblematicprovisionswithinthesector’s
standardformcontractsforexample
‘Thefuneralhomewasforthrightinprovidingpricingbutbelatedinprovidingpaymentoptions
addingextremeangsttothemixwhentheirconsultantdemandedpaymentbybankchequein
advancelateinthedaybeforethefuneralserviceatatimewhenaccesstothedeceasedestate
fundstoobtainabankchequewasonlymadepossiblebecausethebranchoceopenedtheir
doorsafterhourstoissuethechequeThankgodtheydidbecausefuneralwouldnotgoahead
withouttheadvancepayment’
Source funeralservicesconsumerACCCsurvey
FurtherexamplesofthesomepotentiallyproblematiccontracttermsidentifiedbytheACCCare
providedinboxbelow
 Furtherinformationtohelpbusinessesrecognisewhentheyaredealingwithdisadvantagedorvulnerableconsumersis
availableintheACCC’scomplianceguidetitledConsumervulnerabilityAbusinessguidetotheAustralianConsumerLaw’

ACCC Funeral services sector report
BoxPossibleunfaircontracttermsinstandardformconsumer
contracts
TheACCC’sreviewofcontractsintheindustryidentifiedanumberofpotentiallyunfairtermsin
certainindustryparticipants’standardformcontractsincluding
termsthatprescribeexcessiveinterestratesandorexcessivelatepaymentfeesforoverdue
accounts(aninterestrateorfeemaybeconsideredexcessiveifitisnotreferabletothecostof
recoveringlatepayments)
termsthatrequireconsumerstoindemnifyfuneralbusinessesforlossordamageinavery
widesetofcircumstances
termsthatrequirefullpaymentinadvanceofafuneralservicebeingprovidedincertain
circumstancessuchaswherethislimitstheabilityofconsumerstorecovertheircostsorother
lossesifperformanceofthecontractisdisputed
termsthatseektoimposeobligationstomakepaymentsunderthecontracttopartieswho
arenotsignatoriestothecontract
termsthatpermitthefuneralbusinesstochargetheconsumerforadditionalserviceswithout
therequirementtoinformtheconsumerandseektheirconsenttoaddthecost
termsthatpermitthefuneralbusinesstoavoidperformanceofthecontractorvarythedate
forperformanceofthecontractatitssolediscretionforanyreason
Unfaircontracttermssuchasthosedescribedaboveprovidefuneralbusinesseswithadvantagesor
flexibilitiesundercontractsthatarenotalsoavailabletoconsumersUndertheACLcontracttermsare
voidandunenforceableiftheyaredeterminedtobeunfairbyacourt
BoxACCCactiononallegedunfaircontracttermsintheindustry’s
standardformcontracts
AlexGowFuneralstheACCCraisedconcernswithAlexGowFuneralsthatitsstandardform
contractswithconsumerscontainedunfaircontracttermsThetermstheACCCconsideredwere
unfairwere
excessiveinterestfeesforlatepayment
broadindemnityclauseswhichwerenotreasonablynecessarytoprotectAlexGowFunerals
legitimateinterestinrecoveringcosts
InresponsetotheACCC’sconcernsAlexGowFuneralshasamendeditscontracttermsandtheACCC
decidedtotakenofurtheractioninresponsetoitsconcernsaboutunfaircontracttermsFuneral
businessesshouldensurethattheircontractandinvoicetermsandconditionsarefairandreasonable
particularlygiventhatmanyconsumersmayhavelimitedexperienceengagingwiththefuneralindustry
andalsogiventhatconsumers’selectionofaproviderislikelytobeatimesensitivedecisionFuneral
businessesshouldnotrequireexcessiveinterestorfeesforlatepaymentofaninvoicenorgenerally
requirefullpaymentforthefuneralinadvancenorchargeconsumersforcoststhattheyhaven’t
agreedto

ACCC Funeral services sector report
3 Claims about being ‘local’ funeral businesses may
mislead consumers
TheACCChasreceivedanumberofcomplaintsaboutbusinessesincorrectlypromotingthemselvesas
beingindependentorfamily-ownedwheninfacttheyareasubsidiaryofalargercompanyThisissue
ishighlightedbythefollowingconsumerresponsetotheACCCsurvey
‘Itwasonlybycallingeachfuneralprovidertofindouttheirprices(becausetheywerenot
displayedonline)thatIfoundthatthesamereceptionistansweredthephoneforCompany
AandCompanyBWhenIquestionedthereceptionistIfoundoutthattheservicecarried
outby“twocompanies”wasactuallytheSAMEserviceandIwassimplypayingforthename
andimageofonefuneralhomeovertheotherIchosethecheaperoptionThispractice
takesadvantageofpeoplewhentheyaremostvulnerableandinneedofgenuinesupport
andguidance’
Source funeralservicesconsumerACCCsurvey
Figurebelowillustratesthereportedreasonsforconsumerrespondents’ultimatechoiceofa
funeralhome
Figure 4: Key reasons for choosing a funeral home
25%
5%
10%
13%
22%
25%
0% 5% 10% 15% 20% 25% 30%
Other
It was the first
one I found
I was aware of them
through advertising
Shopped around
for options
Referral from
someone I know
I had used them
in the past
Source ACCCconsumersurveyretheFuneralServicesSectorMarchn
Asnotedbyfigureaboveapproximatelyofconsumerrespondentsnominatedpriorusageas
thebiggestreasonforchoosingaparticularfuneralhomewitharoundofconsumerrespondents
identifyinga‘referralfromsomeoneIknow’andaboutindicatingthattheirselectionwasmostly
becausetheyhad‘shoppedaroundforoptions’Approximatelyofconsumerrespondents
selected‘other’inresponsetothissurveyquestionwithmanyoftheserespondentsindicating(intheir
comments)thattheychoseaparticularfuneralhomebecauseitwasprepaidorrequestedbythe
deceasedAsmallersub-setofconsumerrespondentsidentifiedlocalresidents’ownershipofafuneral
homeoralternativelyreferralsfromthedeceased’snursinghomeorhospitalasthemostimportant
reasontheychoseaparticularfuneralhome

ACCC Funeral services sector report
BoxCasestudy–ACCCactiononallegedmisleadingownership
claims
InMarchWTHowardFuneralServicesandCoventryFuneralHomestradingas
Fitzgerald’sFuneralseachpaidapenaltyofaftertheACCCissuedeachofthe
businesseswithaninfringementnoticeforallegedlymakingafalseormisleadingrepresentation
abouttheirownership
WTHowardpromotedonitswebsitethatitwas‘proudlylocalandindependentlyowned’while
Coventryrepresentedthat‘Fitzgerald’sFuneralsinTownsvilleNorthQueenslandislocallyowned
andoperated’wheninfactbothareownedbyapubliclylistedcompanyPropelPropelisthe
secondlargestfuneralserviceproviderinAustraliaprovidingoverfuneralservicesinthe
financialyear
NotonlyaremisleadingownershipclaimsapotentialACLissuetheymayalsodistortthecompetitive
processforthoseconsumerswhowouldprefertouseanindependentorfamily-ownedbusinessrather
thanasubsidiaryofalargercorporateentity
TheACCCconsidersthatfuneralcompaniesthatarepartofalargercorporateentityparticularlythose
thatmayhavebeenacquiredbythatlargerentityshouldreviewtheirpromotionalmaterialtoensure
thatitdoesnotinaccuratelydescribetheirownershipstructure
4 Failing to fulfil prior commitments regarding prepaid
funeral products and services harms consumers
Withinthefuneralservicesindustrythereareanumberofproductsandservicesthatcanbepre-
purchasedfortheconvenienceofconsumersSomeexamplesincludethepre-purchaseoffuneralor
cremationservicesburialplotsmemorialsorcremationnicheswhichcanbepurchasedmanyyearsin
advanceofbeingrequiredConsumercontractsthatrunoversuchlongtimeperiodsareunusualand
createcompliancerisksforfuneralbusinesses
BoxReportedissueswithpre-paymentoffuneralproductsand
services
Consumershavereportedarangeofconcernsregardingpre-paymentinthesectorincluding
burialplotsorcremationnichesbeingpurchasedmanydecadesinadvancehoweverwhen
thetimecametoburyrelativescemeterieshavenotfulfilledthecontractsorhavenotbeen
abletolocateproofofpurchaseoftheplots
funeralbusinesseschangingownershipintheinterveningdecadessincepre-paymentof
funeralproductsorserviceswithbusinesseskeepinginsucientrecordsoftheagreements
thattheyhaveenteredintowithconsumers
TheACCCconsidersthatbyrefusingtoprovidegoodsorservicesascontractuallyagreedorby
requiringconsumerstomakeunexpectedadditionalpaymentsfuneralbusinessesmaybeatriskof
misleadingconsumersabouttheircontractualrightsTheACLprohibitsbusinessesfrommakingfalse
ormisleadingrepresentationsaboutconsumers’rights
 ItisalsoworthnotingthatASIChasregulatoryresponsibilityfortheconductanddisclosureobligationsofissuersoffuneral
insuranceandfuneralbondsThisincludestheobligationstoprovideservicesecientlyhonestlyandfairlyandtocomply
withfinancialserviceslawsFurtherinformationmaybefoundatASIC’sMoneysmartwebsite

ACCC Funeral services sector report
Funeralbusinessesneedtoensurethereareadequatesystemsinplacetodocumentverifyandhonour
long-termconsumercontractsWhereconsumersprovideevidenceofpre-existingagreementsthe
ACCCexpectsthatfuneralbusinesseswillprovidefuneralservicesinaccordancewithaconsumer’s
contractualrightsFailingtodosocouldbeabreachofcontractandmayalsobeabreachtheACL
5 Non-disclosure of paid third-party endorsements can
mislead consumers
TheACCCisalsoawareofconcernsthatthirdpartiesmaybereceivingcommissionsfromsomefuneral
companiesinreturnforpositiverecommendationsandorreferrals
BoxAllegednon-disclosureofcommercialrelationshipsinthe
industry
ComparisonwebsitesSomeobserversnotedthatpricecomparisonwebsitesreceive
membershipfeesorcommissionsfromfuneralbusinessesandwereconcernedthatthese
paymentsmayinfluencetherankingofthefuneralbusinessinsearchresultsorincreasethe
likelihoodofthefuneralbusinessbeingrecommendedTheACCChasengagedwithsome
ofthesewebsiteoperatorstoinformthemoftheirlegalobligationtoavoidconductthatis
misleadingordeceptiveorislikelytomisleadordeceiveconsumers
HealthservicesCertainpartiesalsoallegedthathospitalorhealthcarestaarepaid
commissionsforrecommendingthatfamiliesuseparticularfuneralhomesiftheirlovedone
passesawayTheACCCconsidersthatthenon-disclosureofcommercialrelationshipscandistort
consumerchoicesasconsumersmaynotrealisethatabusinessisbeingrecommendedtothem
becausetherecommenderisreceivingacommissionratherthanbecausetheyareendorsingthe
business’standardofservice
TheACLprohibitsbusinessesfrommakingrepresentationsthatareincorrectorlikelytocreateafalse
impressionToavoidbreachingtheACLbusinessesshouldbetransparentaboutthecommissions
andpaymentsthattheyreceivewherenon-disclosuremaymisleadconsumersTheACCCwouldalso
beconcernedifthepaymentofcommissionstothirdpartiesforendorsementsdetrimentallyaected
thebroadercompetitiveprocessForexampleifthepaymentofcommissionstocomparisonwebsites
orhealthserviceprovidershadtheeectofdiminishingtheimportanceofpriceservicequalityor
reputationwithrespecttothebroadercompetitiveprocessTheACCCwouldalsobeconcernedif
thepaymentofsuchcommissionslimitedcompetingfuneraldirectors’accesstobusinessreferred
byupstreambusinesses(egfromnursinghomeshospitalsetc)particularlyifthishadtheeectof
materiallyreducingcompetitionwithintheindustry
TheACCCisawarethatincertainjurisdictionsincludingtheUKregulatorshaverecentlyproposed
banningfuneralbusiness’paymentofcommissionsinreturnforendorsements


 Competition&MarketsAuthority(UK)FuneralsMarketInvestigation–finalreportDecemberpp–

ACCC Funeral services sector report
6 Bundling or tying that limits consumers’ access to
funeral products or services
Anumberofconsumershavecomplainedthatcertainfuneralbusinessesrequiredthemineectto
acquireparticularproductsorservicesfromothernominatedbusinessesoftenaspartofabundledor
‘tied’funeralpackagewhichmaypotentiallybeanti-competitiveineect
BoxAllegedbundlingortyinginthefuneralindustry
Consumershaveraisedconcernsaboutallegedbundlingortyingofproductsorservicesinthe
industryincluding
someconsumershaveallegedthattheyweretoldthatheadstonescanonlybeinstalledby
businessesonalistofprovidersmaintainedbyafuneralhome
otherconsumershaveallegedthatafterobtainingaquotefortheinstallationofaheadstone
atarelativelylowerpricethanwasoeredbytheirfuneralbusinessitselftheywereadvised
thattheywouldneedtopayalargesecuritydepositofmanythousandsofdollarsifthey
usedthatthirdpartystonemason(whicheectivelymadethethirdpartyprovider’squote
uncompetitive)
Thisconductmayraisecompetitionlawconcernsiffuneraldirectors’policiesorcontractual
requirementsrestrictedcompetingproviders’accesstocustomers–andtherebyblockedtheirability
toenterorexpandintorelevantmarketsforthesupplyofheadstonesandotherrelevantproductsand
servicesTheremayalsobesignificantdetrimenttoconsumersiftheyarerequiredtoacquireservices
athigherpricesfrombusinessesnominatedbyfuneralbusinessesthanfromalternativeprovidersthat
consumershaveresearchedandcontactedthemselves
TheACCCencouragesbusinessesinthefuneralservicessectortobemindfulofthecompetitiveeects
ofanybundlingortyingofproductsandservicesTheACCCwillcontinuetoconsiderthecompetitive
eectsofbundlingortyinginthefuneralservicessectoronacase-by-casebasistodeterminewhether
suchconductmayamounttoasubstantiallesseningofcompetition
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ACCC Funeral services sector report
Addressing competition and consumer
issues in the funeral services sector
TheACCC’sreviewofcompetitionandconsumerissuesinthefuneralservicessectorhashighlighted
arangeofissuesthatrequireactionbybusinessesTheACCCstronglyencouragesbusinessesin
thesectorreviewtheirpromotionalmaterialsbusinessprocessesandtrainingmaterialsforstato
ensurethat
pricinginformationisasclearandtransparentasreasonablypossible
contractandinvoicetermsandconditionsarefairandreasonable
anyownershipclaimsareaccurate
adequatesystemsareinplacetodocumentverifyandhonourlong-termconsumercontracts
whichoftenaretheresultofthepre-paymentoffuneralservices
Businessesshouldalsobemindfulofthecompetitiveeectsofpayingcommissionsinreturnfor
recommendationsandsimilarlythecompetitiveeectsofanybundlingortyingofproductsand
servicesTheACCCwouldbeconcernedifanysuchconductwastodiminishcompetitionbetween
providersintheindustryIncertaincircumstancessuchconductmayraiseconcernsundertheCCA
TheACCChastakenactionagainstanumberofbusinessesinthefuneralservicessectorfordierent
contraventionsoftheACLWewillcontinuetoenforcethelawtotargetarangeofconducthighlighted
inthisreport
TheACCCwillalsocontinuetoactivelymonitorreportstousaboutpotentiallyanti-competitive
conductinthesectorandwilltakeactionwhereappropriateWeencourageconsumersandfuneral
industryparticipantstocontactustoreportanyconcernsaboutbusinesses’practices