High-pressure funeral sales tactics could be outlawed

Companies found to be bullying vulnerable people into buying expensive pre-paid options will face criminal charges, under new government proposals

Big firms in the sector have hiked prices by between 6 and 8 per cent a year for the past eight years, CMA says

High-pressure sales tactics used by some funeral providers could be outlawed under new government proposals.

Companies found guilty of bullying or rushing people into buying expensive pre-paid options would face fines and criminal charges, if the plans are given the go-ahead.

Customers would be protected by a specialist ombudsman, while the Financial Conduct Authority would regulate the industry in the same way it currently does with insurance firms.

The proposals come after some funeral providers were found to be using misleading sales tactics to get vulnerable customers to cough up more than was necessary for services.

Announcing the plans, John Glen, the city minister, said: “Planning for your funeral can be a difficult experience, but one that many of us will need to go through at some point in our lives.

“It’s shameful that there are those out there who look to prey on people when they are in this often emotional and vulnerable state.

“That’s why I’ve taken the decision to regulate pre-paid funeral plans, so people can have more confidence in the products they’re being offered and peace of mind that their affairs will be handled correctly.”

He added that the action was being taken after demand for pre-paid funerals – where a person organises and pays for their own ceremony – grew by almost 200 per cent between 2006 and 2018.

The announcement comes just months after the competition regulator revealed it had launched an in-depth investigation into funeral directors amid accusations that grieving families were being ripped off.

Big firms in the sector have hiked prices by between 6 and 8 per cent a year for the past eight years, the Competition and Markets Authority said, while adding that some local authorities have also increased fees for burial and cremations.

The government consultation on banning high-pressure sales tactics is now open.