Funeral homes owned by ASX-listed giant Propel lied about being ‘proudly local’, entire sector put on notice

The funeral services sector has been warned it is being watched after two businesses lied to grieving customers, the regulator says.

Funeral homes have been pinged by the consumer watchdog for the first time and the sector has been warned it’s “on notice” for further regulatory action later this year.

The Australian Competition and Consumer Commission says WT Howard Funeral Services in Taree, NSW claimed on its website it was “proudly local and independently owned”, while Coventry Funeral Homes in Townsville, North Queensland proclaimed it was “locally owned and operated”.

Both businesses, trading as Fitzgerald’s Funerals, are owned by Sydney-based publicly-listed company Propel Funeral Partners, which is the nation’s second largest funeral service provider with 130 funeral homes in Australia and New Zealand, including nine cemeteries.

Propel acquired WT Howard in 2015 and Coventry Funeral Homes in 2019 but failed to remove their claims about local ownership after they were bought.

Funerals are a lucrative business.

“Businesses need to have systems in place to regularly check that the information they are providing to consumers on their websites and other promotional material remains accurate, as making misleading representations to consumers is a breach of the Australian Consumer Law,” ACCC deputy chair Delia Rickard said.

Both businesses were issued with an infringement notice and have each paid $12,600 in penalties.

“These penalties are the first enforcement action by the ACCC in this enforcement priority area, but funeral service businesses are on notice that further enforcement action will be considered this year,” the regulator said.

It has also released a survey seeking further information about the experiences of consumers and businesses with the funeral services sector. The survey remains open until April 17.

The funeral sector is under the microscope, the ACCC warns.

“If you have organised a funeral, or you work in the funeral services industry and have concerns, please take the time to complete the survey,” Ms Rickard said.

The ACCC announced last month that scrutinising the industry was among its priorities this year, warning it would launch “targeted action against some funeral businesses following concerns about the use of market power and unconscionable conduct in the sector”.

Choice campaigner Amy Pereira said the ACCC and the consumer advocacy group were both standing up against not just false and misleading advertising but pricing and practices in the funeral sector.

“Choice’s investigations into the funeral industry have found that a lack of transparency is harming grieving people at their most vulnerable,” Ms Pereira said.

“We look forward to further findings and enforcement actions from the ACCC as it conducts its investigation into the funeral services sector this year.”

It comes after Choice last year handed Australia’s biggest funeral service provider InvoCare, also ASX-listed, its Shonky Award for “failing to be upfront about prices”, saying “if there’s one time in your life when you’re not in the mood to shop around for the best deal, it’s when a loved one dies”.

Originally published as Funeral homes owned by ASX-listed giant Propel lied about being ‘proudly local’, entire sector put on notice