Australia's consumer rights watchdog has warned funeral services to act honestly and transparently when dealing with Indigenous people affected by the collapse of the Youpla Group.
The Youpla Group, previously known as the Aboriginal Community Benefit Fund, entered into liquidation in March 2022.
On Wednesday the Australian Competition and Consumer Commission issued a warning to funeral services providers not to mislead consumers about prices.
The Federal Government has commenced the Youpla Group Funeral Benefits Program to pay a grant in place of a funeral benefit that would have been paid by Youpla to eligible beneficiaries of people who held an active Youpla policy on or after April 1, 2020.
ACCC deputy chairwoman Delia Rickard said funeral service providers should not try to take advantage of the grants payments by increasing the price of funeral services.
"Businesses should know that we will take action if misconduct is identified as this grant program commences, and that excessive pricing may, in certain circumstances, raise concerns under the Australian Consumer Law," she said.
"In particular, funeral providers must not make false, misleading or deceptive claims about the cost of funeral services.
"Funeral providers often deal with families at a time of grief and often financial pressure, when people are particularly vulnerable. They must not abuse that vulnerability."
Ms Rickard said the ACCC previously highlighted concerns about certain practices in the funeral industry, and will not hesitate to take appropriate action if they see evidence of breaches of the law.
In December 2021 the ACCC published a report highlighting its concerns about the funeral sector in December 2021, pointing to several issues, including a lack of clarity and transparency in pricing information.
The ACCC recommends families seeking quotes for funeral services avoid disclosing to funeral providers that they are eligible for payments under the Youpla Group Funeral Benefits Program until they have obtained a quote.
"The best way for businesses to avoid misleading consumers is to be upfront about the costs associated with their services, and avoiding describing charges as 'mandatory' when that is not the case," Ms Rickard said.
"Consumers can also ask the provider for information about the minimum cost covering only the essential services when comparing their options."
Ms Rickard said sorry business was of deep cultural importance to Indigenous people, and the ACCC would closely monitor reports of funeral businesses taking advantage of government payments.
Applications to the Youpla Group Funeral Benefits Program fund opened in September and need to be made by 30 November 2023.
The Australian Securities & Investments Commission has ongoing proceedings in the Federal Court against ACBF Funeral Plans Pty Ltd and Youpla Group alleging these entities engaged in misleading and deceptive conduct and made false and misleading representations, in offering, promoting and selling certain funeral benefits plans.
