CMA orders funeral firms to make prices clearer

The Competition and Markets Authority (CMA) has ordered funeral directors and crematorium operators to make their pricing clearer.

The UK’s competition watchdog warned that it would take legal action against the industry if it refused to comply.

The order comes after an investigation by the CMA found “serious concerns” regarding the clarity of funeral costs.

Funeral directors must display a clear price list on their website and premises from 16 September.

The price list must include the cost of a funeral, as well as pricing for individual items, extra products, and additional services.

The CMA also announced that funeral directors may no longer pay institutions to refer customers to them. Up until now funeral directors had been incentivising care homes, hospices, and hospitals to pass business along.

Chairman of the CMA inquiry, Martin Coleman, said: "Organising a funeral is one of the hardest things that anyone must do, and it is vital that people are treated fairly. Customers need clear information so that they know what they will be charged and are able, if they wish, to compare the prices of different providers.

"We urge funeral directors and crematorium operators to start making these changes now. We will be keeping a close eye on the sector and stand ready to take action if firms don't follow the rules."

The CMA investigation found that prices for similar services “differed considerably” between providers, and that the way in which information was presented made it hard for customers to "choose the right combination of services for their loved ones".

The watchdog said it expects the industry to now "take action to ensure the changes are implemented by the legal deadlines".

Further recommendations on how to regulate funeral directors have also been made by the CMA to the government, however, the watchdog says that the “exceptional circumstances” of the pandemic means that "some of the remedies the CMA might otherwise have pursued, including measures to control prices, could not be developed".

The National Association of Funeral Directors (NAFD) said it “warmly welcomes” the Funeral Markets Order.

John Levett, NAFD chief executive, said: "Although many funeral firms do publish pricing information online, some don't and there is a wide range of formats used which can be confusing for bereaved consumers at a difficult time.

"The CMA's requirements, although extremely complex in places for small businesses to navigate, support the delivery of high standards to funeral consumers and bring consistency to the process of choosing a funeral director."