Price-fixing scandal haunts funeral parlors

Twelve funeral service companies and a trade association were raided yesterday in an ongoing Competition Commission inquiry into alleged anti-competitive conduct when providing services.

The watchdog said it searched 13 premises in Hung Hom, Tuen Mun and Yuen Long.

It was told that practitioners engaged in market sharing by coordinating to drum up business at Fu Shan Public Mortuary - rebuilt as the New Territories (Shatin) Forensic Medicine Centre in December 2022.

Commission officers and police from West Kowloon also asked funeral service practitioners to provide documents and information.

"The companies, trade association as well as other funeral service practitioners are suspected of having engaged in anti-competitive conduct, including price-fixing, when providing services, in contravention of the first conduct rule under the Competition Ordinance," the watchdog said.

The raid came after the commission received information alleging that providers coordinated their solicitation of customers at the forensic medicine center in Sha Tin.

"The commission gathered and analyzed information relating to the case before conducting a surprise visit to the center with assistance from police in August 2023," the commission said.

"The aim was to gather more information from practitioners on-site, as well as other staff working at the center."

After the August operation, the commission analyzed the information and found that a trade association and "certain funeral service companies and practitioners are also suspected of having engaged in anti=competitive conduct including price-fixing."

The watchdog believed there is "reasonable cause to suspect" a contravention of a competition rule.

But launching the investigation does not mean the case has concluded, it added, as the investigation is still ongoing.

The watchdog also urged "all companies and trade associations to comply with the ordinance and steer clear of anti-competitive practices."

It appealed to persons who might have engaged in price-fixing activities to contact the commission for leniency or cooperation.

The chairman of Hong Kong Funeral Business Association, Kwok Hoi-pong, denied the price-fixing accusation.

"Every time we provide services, we would discuss with the deceased's family members about their needs," Kwok said. "I'm puzzled about how we could be accused of price-fixing."

Kwok said the sector is willing to cooperate with the investigation. But he added the watchdog took away their mobile phones, which would affect their job as they could no longer contact their clients.

wallis.wang@singtaonewscorp.com