Funeral parlour and crematoria owner Dignity (LON: DTY) does not have to worry about price controls – for the time being at least. However, this is a short-term respite and the recovery in the share price appears overdone.
The Competition and Markets Authority (CMA) says it would not be possible to impose price controls under current circumstances. It does intend to return to the option of price controls once the sector is in a steadier state. There may have to be a supplementary market investigation on pricing issues.
A Sunlight regime that would provide oversight of the sector is suggested. There would need to be more visibility on pricing. This would make it easier to compare prices. Dignity and Co-op tend to be more expensive than family-owned businesses.