The Funerals Market Investigation Order 2021 explained by the CMA
By Adam Land, a senior director for remedies, business and financial analysis at the Competition and Markets Authority, who leads its enforcement work in the funerals sector
Many bereaved families face the added stress of trying to organise a funeral. This has meant having to grapple with confusing and opaque prices, which meant people had to work harder to find the right service for them. It’s an important reason why the CMA looked into the funerals sector and why we put rules in place to stop this from happening.
Through our investigation, we found that an array of different services were being advertised by funeral directors, described in different ways and with limited transparency, and that this was one of the main obstacles which made it even harder for people to choose the right service for them.
That’s why the CMA changed the law, introducing new rules under the Funerals Market Investigation Order 2021, which put more information in the hands of families looking to organise a funeral.
Our annual review of the sector not only found the rules are having a positive effect – keeping funeral costs down in real terms for a second year in a row – but we have also been able to identify changing consumer trends. For example, there has been a small but gradual uptake in less expensive unattended funeral services.
Despite the good work of many operators, a significant minority of funeral directors and crematorium operators are breaking the law. This year, the CMA has received complaints relating to 238 individual businesses about breaching these rules, which represents 10% of firms in the funeral and crematorium sector.
We’ve published guidance and spent a lot of time reaching out to businesses to make sure they understand what we expect of them. Most providers are now complying with the law, but we can and will keep pushing to ensure everybody is playing by the rules.
The CMA has written to each of the 238 businesses to remind them of their obligations – so, if you receive a letter about suspected breaches, do not ignore it. Action is needed – even if that action is to prove to the CMA how you are complying with the rules.
To comply, all funeral directors and crematorium operators must clearly show price information to their customers in the specified format, both in their premises and online. All operators must also show business, financial, and commercial information to their customers.
The law also bans all funeral directors from entering into exclusive arrangements with hospitals, hospices and care homes which incentivise these trusted institutions to refer newly-bereaved families to them; and soliciting new business through coroner or police contracts.
Bereaved families, like everyone, are being put under incredible pressure, in part due to the rising cost of living. The CMA has acted, and its rules are helping, but we need all funeral and crematorium directors to comply with the law.
