Oh funeral industry, how great thou aren't

An investigation into the funeral industry has just been announced.

But don't pull out the asparagus rolls just yet. It's not happening in New Zealand.

This is a British investigation announced a few weeks ago by their Competition and Markets Authority.

As I skimmed this news, the memory of our own legal review came back. What became of that Law Commission Report in 2015? 

These were sensible proposals, part of which recommended a clean up of the funeral industry with regulation and more price transparency. Submissions were collected and then what? Surely it had sailed through.

After a quick ferret about, the cold clammy truth dawned on me. The legislation had not proceeded. It's left me flummoxed.

At 30,000 deaths a year and an average cost of $10,000 per funeral we have an industry worth $300 million annually. These are big-ticket sales. Let's dwell on the money a little longer for effect.

Every five years, we spend around $1.5 billion dollars burying our family. This isn't something optional. Yet a lack of basic consumer protection exposes us to a bunch of financial pirates.

You might find that harsh. It might make you uncomfortable. Generally funeral directors are the kindest most caring individuals we interact with. Yet even the good ones, those who have been in our communities for decades, burying our dead and earning quiet respect have continued to operate with no price transparency.

At some point you have to be brave enough to call that out.

These caring casketeers are price racketeers. They use the shroud of grief to maintain price control. Their business models have high levels of protection from the DIY funeral industry thanks to emotions and local authority systems that are difficult to navigate.

Consumer NZ note that "finding out what it will cost for your final send-off is harder than it should be. Many funeral companies don't publish prices for their services. Some may only provide estimates before the event itself".

How great thou aren't.

There were four sections to the Law Commission report on burials and cremations. Regulation of the funeral industry being one of these.

The commission was thanked for its thoughtful and thorough review and eloquently pushed aside under the statement that "officials have been requested to undertake further work and report back to Cabinet as Government priorities allow".

Blimey Trevor, here we are in 2019. Over 100,000 funerals have taken place since their thoughtful and thorough report got a quick trip up the crematorium chimney. And still we have no consumer protection.

Most of us would fail to see why the Law Commission's proposals would attract any debate. What did they want?

Publication of a price list for all components of a funeral service.

Disclosure of qualifications, industry membership and a complaints procedure.

A registration system for funeral directors to prove they don't have serious convictions or other conditions that would make them incompetent operators, and creation of a statutory duty to treat any human body or remains with respect and a requirement not to unduly delay the disposal of the body.

The Government expressed concern that regulation could increase the price of funerals for consumers and work should be done around co-regulation or self-regulation.

So dear me, they'll have to upgrade their websites to include line-by-line price lists, add their qualifications, get a police check, a fit-and-proper person referee and join a register. Does that sound like a heavy or unreasonable layer of cost for a big-ticket sale?

While the vast majority operates beyond reproach with high levels of conduct, financial transparency remains low across the board.

It's much easier to operate a website with vague statements about prices being widely variable. Just come and talk to us. Gotcha.

Some operators give very clear price indications and offer three packages showing a no-frills, medium and comprehensive option. It's a great start, but there's still no price breakdown.

The funeral directors association website gets consumers to answer 20 questions and will obtain estimates. Again, that lets operators wrap up all sorts of costs into a 'services' fee and not be specific.

Yes funerals vary widely in price, but don't hide behind that. It's not difficult to offer detailed pricing lists. Catering packages based on numbers, costs of various coffins, transport options, death certificate, mortuary preparation, detailed admin charges, celebrant costs and floral packages.

To be able to view these prices quietly at home, with no pressure, gives a family a chance to think about their budget and how to use it. Costs of a direct cremation service should also be offered as a budget comparison.

Consumer protection deserves high priority due to vulnerability and the money involved. Government officials should carve this out into a separate project urgently and consider an ombudsman service.

Janine Starks is a financial commentator with expertise in banking, personal finance and funds management. Opinions in this column represent her personal views. They are general in nature and are not a recommendation, opinion or guidance to any individuals in relation to acquiring or disposing of a financial product. Readers should not rely on these opinions and should always seek specific independent financial advice appropriate to their own individual circumstances.