Funeral industry encouraged to provide greater price transparency, clarity on packages

SINGAPORE: Funeral service providers are encouraged to provide greater price transparency for their products, Singapore's competition watchdog said on Friday (Nov 17). 

Among the best practices include highlighting to consumers that package prices could be subject to change if additional items are procured, added the Competition and Consumer Commission of Singapore (CCCS). 

Those who seek out these services "do not generally have a good sense of how much funeral products cost", according to findings from a market study conducted by CCCS with the support of the National Environment Agency (NEA).

"This is because consumers are unlikely to be familiar with the associated costs of arranging a funeral, given its nature and the fact that price information is not readily available," said the study, adding that funeral packages can vary significantly in price depending on what they cover. 

More than a quarter of respondents in the market study expected a funeral arrangement that includes a wake to cost less than S$1,000 (US$750). However, very few respondents - about 1 per cent - who had experience planning a funeral actually paid less than this amount. 

Those polled for the survey reported spending various amounts for at-need funeral arrangements in the three years from 2018 to 2020. This ranged considerably from S$1,000 to more than S$9,000, with the median respondent paying between S$5,000 and S$8,999. 

Consumers may also not know the final price at the time of engaging these services as clients are typically given the option to purchase add-ons, or to refuse or cancel certain items during the course of the funeral. 

The funeral service industry can make this process clearer by being more transparent about the items included in a package, said CCCS. 

Businesses can also provide consumers with a reference list of optional items not included in the package and their corresponding prices.

The study showed that arranging a funeral is "highly customisable" and may involve various add-ons, ranging from the option to embalm the deceased's body, to the type of casket and desired religious rites. The location and duration of the wake as well as related amenities and catering are factors as well. 

The commission said funeral service providers are also encouraged to issue consumers with a written copy of terms and conditions, and to provide an invoice with sufficient details about the items provided when collecting payment.

POTENTIAL UNFAIR PRACTICES

Although CCCS and the Consumers Association of Singapore (CASE) have not received "many complaints" against funeral service providers, the commission said anecdotal feedback received during the market study suggested that some consumers may face unfair practices and misleading claims.

For instance, funeral service providers may describe their products as a "one-stop service" or "full package", but this may not be the case as consumers have to contract and liaise with multiple vendors, said the commission. 

Funeral service providers may also fail to provide advance information that the final price may differ from the stated package price due to "additional unavoidable or optional fees and charges". They may also ask for payment for add-on products which were not initially consented to, it added.

President of CASE, Melvin Yong, said on Friday that the association has received 13 complaints against funeral service providers since 2021. 

"Most complaints related to pricing of funeral products and services where affected consumers complained that their final bills were much higher than what they were informed initially due to charges not disclosed at the onset," he said in a Facebook post.

Some were also reportedly told that the products and services would cost less if items were selected individually instead of as a package.

"In one complaint, a consumer had initially opted for an all-in package of S$8,000. But he followed the advice of the service provider who informed him that he would pay a cheaper price if he opted for a la carte items. When the final bill was presented to him, it amounted to S$20,000, which was more than double the price of the package," said Mr Yong. 

"The number of complaints is likely to be a fraction of the actual grievances considering that some consumers may choose to not pursue simply because they would like to close the sad chapter in their lives and move on."

Mr Yong added that while CASE acknowledges the importance of educating consumers to help them make informed purchasing decisions, the association also echoes CCCS’ call that the funeral services industry can be more transparent.

ASKING THE RIGHT QUESTIONS

CCCS encouraged consumers to pre-plan funeral arrangements to better make informed decisions and to ask the "right questions" when consulting with a funeral service provider.

The market study found that consumers who considered the purchase of funeral products only when the death of their loved ones has happened or appears imminent may be vulnerable and impaired in their ability to make informed decisions.

"They have to come to terms with the loss as well as handle the social and emotional pressure of arranging the funeral, a process which they are unfamiliar with, and the pressure of making decisions within a short time."

Pre-planning can help to mitigate such difficulties, as it involves the timely sharing of a person’s funeral wishes with their loved ones, which will allow one’s preferences to be accounted for when the time comes.

This also facilitates the decision-making process and helps to reduce the pressure that loved ones have to face during a time of grief, it added.