Media Release
Issued 4 May 2004-05 / 125
Commission warns funeral directors against price fixing
The Commerce Commission has issued separate warnings to six Manawatu-based funeral directors. The funeral directors
submitted a joint tender to the police for a contract to transfer deceased persons that put them at risk of breaching
the price fixing provisions of the Commerce Act.
The Commission’s investigation established that the six funeral directors agreed prices for the supply of services as
part of a joint tender put forward to the New Zealand Police in 2003. The tender related to a contract to transfer
deceased persons for the Central Police District, which includes the Manawatu region.
“There is clear evidence that the funeral directors met and discussed the submission of a joint tender for the 2003
Police Contract,” said Commission Chair Paula Rebstock.
“The funeral directors agreed prices and the manner in which the joint tender documentation would be completed, collated
and delivered.”
“The Commerce Act specifically prohibits price fixing. Price fixing is deemed to substantially lessen competition in a
market and can have destructive effects on economic efficiency.”
The six funeral directors, members of the Funeral Directors Association of New Zealand, are
Beauchamp Funeral Home Ltd;
Thomas Griggs & Son (at the time owned by Bledisloe New Zealand Ltd);
Robert J Cotton & Sons Ltd;
Anderson Funeral Services Ltd;
Harvey-Bowler Funeral Services Ltd; and
Tararua Funeral Services Ltd.
While the joint tender by the six funeral directors was unsuccessful, Ms Rebstock said that if the tender had been
successful, it would have resulted in competitive detriment and the Commission would have considered taking court
proceedings.
The Commission has also formally advised the Funeral Directors Association of New Zealand and New Zealand Police of its
concerns in relation to this matter, to ensure that funeral directors in other areas do not put themselves at risk of
contravening the Act in the future.
ENDS