The American Way of Death Revisited - Jessica Mitford [127]
“This anti-American hysteria is quite laughable,” he said. “Although SCI is owned by Americans, there are only two American executives permanently in the U.K. Everyone below them is English.” He explained that SCI intended to maintain a low profile; it refused to get into a shouting match with its detractors in the media, which is why they declined the invitation to appear in the “Public Eye” documentary. He now thinks that decision might have been a mistake, and said that “we’ll see a more active response from SCI in the future.”
Peter Hindley, the English chief executive of SCI in the U.K., is the author of many an in-house directive to “All Staff.” Accusations of hard sell? “Absolute rubbish,” he said. “We do not have hard-sell tactics. What we have is people offering client choices, informed choice. We offer a much wider range of coffins than other funeral directors. We will offer a much greater range of ashes caskets [cremation urns]. We will offer memorial books, and a much wider range of graveside memorials. We will offer a better range of flowers.” Echoing his memo to “All Staff” in the wake of the “Public Eye” documentary (in his opinion, the program was “motivated by some of our competitors”), he declared that “small-minded funeral businesses spend their life trying to sling mud at SCI.”
Of far greater moment than the slings and arrows of the media to SCI’s plans for achieving its goal of “enhancing its revenues by enhancing consumer choices” is the May 1995 report of the Monopolies and Mergers Commission presented to Parliament by the secretary of trade and industry by command of Her Majesty. The MMC is the British counterpart of the Federal Trade Commission, but the approach of the two agencies to their mandated job of consumer protection couldn’t be more different.
The FTC does not normally concern itself with so-called market share until it becomes formidable enough to threaten competition in wide regional areas. SCI’s national market share in the U.S., measured in terms of its own undertaking establishments, is about 10 percent. Not to worry, says the FTC. But what of Houston, Texas, where SCI’s market share, measured by its share of the funeral business, is no less than 70 percent?
The MMC, recognizing that competition in the funeral trade is of local rather than national concern, has taken a different view of SCI’s recent acquisitions in the U.K. It has condemned the merger on the ground that “it may be expected to operate against the public interest.” Its reasons stated with typically British reserve, the report castigates the merger in terms which would equally apply to SCI’s operations in the U.S. and Australia:
Our investigation indicates that although funeral directors do compete on price the competition is muted. The market is a long way from functioning effectively. Entry is likely to be particularly difficult where a powerful, well-run supplier has a large share of the market.… We also have concerns about the degree of transparency of funeral directors’ charges, the lack of transparency of ownership of funeral directing outlets and the ability of funeral directors unduly to influence the choice of funeral arrangements.
The report identifies ten localities where the merged companies’ share of funerals performed range from 29 percent to 51 percent. Consequently, the report continues, “SCI may be expected … to raise prices excessively … to the detriment of consumers in these localities.” While the Federal Trade Commission has turned a blind eye to SCI’s practice of concealing from the public its ownership and control of its hundreds of funeral homes by the fictitious use of their pre-purchase names, this practice is a matter of concern to the MMC:
SCI’s failure to disclose to consumers the ownership of its branches will