Penalties for funeral celebrants attempted price fix

The Federal Court has ordered total penalties of $40,000 against Dally M Publishing and Research Pty Ltd* and its director Mr Dally Messenger for attempting to fix prices of funeral ceremonies in the Melbourne metropolitan area.

The court declared the company, trading as the International College of Celebrancy, and Mr Messenger attempted to contravene the price fixing provisions of the Competition Code of Victoria**.

The court found that the International College of Celebrancy, and Mr Messenger attempted to make an arrangement with, and otherwise induce, funeral celebrants in metropolitan Melbourne to make an arrangement to the effect that:

• (a) the company would, on behalf of funeral celebrants associated with the college, declare to funeral home operators an increase in the standard fee charged by those funeral celebrants for the supply of services in relation civil funeral ceremonies to $440 (including GST) and would notify the operators that the fee would thereafter increase annually in line with the Consumer Price Index upon further notification by the college
• (b) such funeral celebrants would increase and then maintain the standard fee charged by them for the supply of services in relation to civil funeral ceremonies conducted in connection with the services supplied by operators of funeral homes in the Melbourne metropolitan area to $440
• (c) such funeral celebrants would thereafter increase their standard fee annually in line with the CPI upon notification by the college

being provisions which had the purpose or were likely to have had the effect of fixing, controlling or maintaining the price of services supplied by celebrants in relation to civil funeral ceremonies conducted in connection with the services supplied by operators of funeral homes in the Melbourne metropolitan area.

The court ordered:

• declarations that the conduct of Dally M Publishing and Research Pty Ltd and Mr Messenger attempted to induce persons to contravene the Competition Code
• injunctions restraining the company and Mr Messenger from engaging in similar conduct in the future
• an order that the company implement a trade practices compliance program
• an order that the company and Mr Messenger pay pecuniary penalties of $30,000 and $10,000, respectively, and
• an order that the company and Mr Messenger contribute $3,000 each towards the ACCC's costs of the proceeding.

Australian Competition and Consumer Commission, Chairman, Mr Graeme Samuel, said it is consumers who are disadvantaged by price fixing.

"In this instance the conduct related to services sought at a time of loss and distress.  At such times, consumers may not be in a position to shop, compare and negotiate price.

"The benefits of a competitive market place are extremely important. Conduct which promotes collusion and inhibits competitive pricing cannot be tolerated," Mr Samuel said.

"The penalty imposed by the court will impact on the respondents given their financial positions. It also sends a reminder to all businesses, trade associations and individuals to observe their obligations under the law, whether that be under the Trade Practices Act or the Competition Code."

Businesses that become aware of price fixing arrangements or attempts to introduce price fixing arrangements are encouraged to report their concerns to the ACCC.

Background

* The company Dally M Publishing and Research Pty Ltd trades as the International College of Celebrancy.

** The Competition Code of Victoria is a Victorian law, which forms part of a single National Competition Policy that applies across Australia.  Under the Trade Practices Act 1974, the ACCC is often restricted to instituting proceedings against corporations for anti-competitive conduct; under the Code, the ACCC can institute proceedings for such conduct directly against individuals.