Singapore competition watchdog urges funeral industry to be more transparent with prices

The funeral services industry should provide clear and accurate information about their products, Singapore's competition watchdog said on Friday (Nov 17).

The best practices include highlighting to consumers that the prices of funeral packages could be subject to change, the Competition and Consumer Commission of Singapore (CCCS) added in its findings with the National Environment Agency (NEA).

"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," CCCS said, adding that funeral packages can vary significantly in price depending on what they cover.

CCCS shared that they received feedback of funeral service providers describing their products as a "one-stop service", when in fact consumers have to contract and liaise with multiple vendors.

There were also instances of funeral service providers asking for payment for add-on products which consumers did not consent to.

The study showed that more than a quarter of respondents expected a funeral arrangement that includes a wake to cost less than S$1,000. However, very few respondents - about one per cent - who had experience planning a funeral actually paid less than this amount.  

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To provide greater transparency, businesses can 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.

CCCS said that funeral service providers are 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.

Besides obtaining inputs from industry partners, and care facilities, CCCS said that their findings were derived from a consumer survey with a sample size of 500 respondents in early 2021. 

Funeral pre-planning to help make informed decisions: CCCS

The study did not find any competition concerns involving funeral service providers, CCCS said.

But consumers who consider 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 added.

"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 for end-of-life arrangements with loved ones can mitigate such difficulties, according to CCCS in their report.

This is through the timely sharing of a person's funeral wishes with his or her loved ones, with allows one's preferences to be taken into account for when the time comes.

"This also facilitates the decision-making process and assists to reduce the pressure that loved ones have to face during a time of grief," CCCS said.

13 complaints against funeral service providers

Taking to Facebook on Friday, CASE president Melvin Yong said that they have received 13 complaints against funeral service providers since 2021.

Yong shared how a consumer ended up with a final bill of $20,000 after following the service providers' advice that it would be cheaper if he opted for a la carte items.

"He had initially opted for an all-in package of $8,000," Yong added.

"While it may be understandable that prices quoted at the onset are often estimates and may be subjected to changes due to different needs and considerations, the final bill should not differ substantially."

Yong said that consumers can use a checklist developed by CCCS to ask the right questions when consulting with service providers.

These include asking what are the available funeral products or packages based on the budget, the mandatory and optional costs, and if there are available samples or pictures of the funeral products.

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chingshijie@asiaone.com