ACCC flags investigation of funeral industry as a top priority in 2020

Fake late fees. Lies about inclusions. Artificially inflated prices. ACCC boss Rod Sims says he intends to get to the bottom of the growing criticisms of Australia’s billion-dollar funeral industry.

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Cleaning up the funeral industry has gone to the top of ACCC boss Rod Sims’ 2020 to-do list amid allegations of hidden fees and possible unconscionable conduct.

Four months ago, Choice uncovered the dominant provider InvoCare — which is worth $1.5 billion — had been adding a $350 late fee to all funerals.

“There is growing criticism about the lack of price transparency for funeral services and the difficulties consumers face in making an informed decision,” Mr Sims said yesterday in a speech outlining the Australian Competition and Consumer Commission’s priorities for the rest of the year.

The ACCC is also concerned about complaints from consumers about misleading and deceptive practices in the sector. These include hidden fees, add-on services not included and misrepresentations about what will be covered.

“Additionally there are allegations of unfair contract terms within funeral service and prepaid funeral contracts,” Mr Sims said.

ACCC boss Rod Sims has widespread concerns about the funeral industry. Picture: AAP Image/Joel Carrett

Most concerning were accusation of unconscionable conduct, he added.

“There are allegations that some funeral operators inflate the price of services, and take advantage of consumers at a vulnerable time,” Mr Sims said. “Complex and opaque pricing, product bundling and other strategies adopted by some funeral operators are also issues we will be examining more closely.”

Mr Sims asked whistleblowers to come forward.

Australian Funeral Directors Association president Andrew Pinder said it supported anything “To the extent that there are concerns then absolutely they should be investigated,” Mr Pinder said. AFDA members conduct 60 per cent of all funerals.