Commission warns funeral directors against price fixing

The Commerce Commission has issued separate warnings to six Manawatu-based funeral directors about price fixing.

The funeral directors submitted a joint tender to the central police district in 2003 for a contract to transfer dead bodies that put them at risk of breaching the price fixing provisions of the Commerce Act.

"The funeral directors agreed prices and the manner in which the joint tender documentation would be completed, collated and delivered," commission chairwoman Paula Rebstock said in a statement.

"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 joint tender by the six funeral directors was unsuccessful, but Ms Rebstock said if it had been successful the commission would have considered taking court proceedings.

- NZPA