The Competition watchdog launched a probe into rip-off funeral prices on Thursday, prompting a 16% drop in shares of the UK’s only listed undertaker Dignity.
The Competition and Markets Authority said prices charged to bereaved families had risen at triple the rate of inflation over the past 10 years.
It said this was hurting consumers when they are most vulnerable.
CMA chief executive Andrea Coscelli said: “We need to make sure that they are protected at such an emotional time, and we’re very concerned about the substantial increases in funeral prices over the past decade.”
Dignity said it took the findings “extremely seriously”. Its shares shed 161p to 846p.
The company, along with the Co-op, has started to offer budget deals.
CMA said a lower-cost option “doesn’t go far enough to make up for years of above-inflation price hikes”.
Funerals cost on average £4271 and cremations £737.
Funeral director fees rose 68% and crematoria fees 84% in 10 years.
