Australia's largest funeral and cemeteries operator has been fined more than $100,000 for allegedly deceiving grieving families.
The penalty follows an investigation by the federal consumer watchdog into claims that InvoCare Limited misled customers about their right to supply memorial plaques at its cemeteries.
Families complained to the Australian Consumer and Competition Commission after being told they would be in breach of contract if they did not buy memorials for their loved ones exclusively from InvoCare.
The listed company is a behemoth in the funeral industry, operating 14 cemeteries and crematoria in Australia and owning brands including White Lady, Guardian Funerals and Le Pine. Last year it reported an after tax profit of $48.9 million.
The ACCC investigated InvoCare after receiving complaints from four customers about pre-purchased burial sites at two cemeteries in Sydney - Pinegrove Memorial Park at Minchinbury and Castlebrook Memorial Park at Rouse Hill.
They related to a change in InvoCare's standard contract made in 2011, which said burial sites could not be used unless a memorial was bought from the company. The old contract did not include an obligation for customers to buy monuments, headstones or plaques, but the new agreements said the right to use a site was conditional on a memorial being bought from InvoCare within 60 days.
Despite purchasing the plots prior to the change in contract, the families were told they had to spend thousands of dollars on memorials provided exclusively from InvoCare.
"We're always concerned when consumers are misled and we're particularly concerned when consumers are being misled at a vulnerable time, which is what was happening here," ACCC deputy chair Delia Rickard said. "They were obviously upset. It's a very vulnerable time for people."
InvoCare admitted its actions were likely to be in breach of Australian Consumer Law and was fined $102,000.
InvoCare offered compensation to affected families and gave a court enforceable undertaking that for three years it would not require customers buy a memorial, including those who had existing contracts that contained such a requirement.
A new contract for the sale of burial sites has been created, which contains no obligation for customers to purchase a memorial.
Customers who choose to buy a bronze plaque memorial can now purchase it from InvoCare or another supplier, subject to pre-approval and payment of a placement fee.
"We are committed to communicating clearly with our customers and treating them fairly at all times," chief executive Andrew Smith said.
"When we became aware that some customers had not received the care and respect they deserve we took immediate action to address their concerns."
