A viral video of Pastor Alph Lukau shows him shouting "rise up" to a man lying down in a coffinwho then jerks upright to cheers from worshippers.
The funeral companies say they were manipulated into being involved.
The spectacle, seen outside Pastor Lukau's church near Johannesburg, has been ridiculed and condemned by many.
"There are no such things as miracles," the Commission for the Promotion and Protection of Cultural, Religious and Linguistic Communities(CRL Rights Commission) told South Africa's national broadcaster.
Three funeral companies who say they were manipulated by the "scheme" are now taking legal action for damage to their reputation.
Kingdom Blue, Kings & Queens Funeral Services and Black Phoenix told local media that church representatives tricked them in different ways.
"Alleged family members of the deceased" told the Kings & Queens Funeral Services they had had a "dispute with a different funeral service provider".
The customers also allegedly placed "Black Phoenix stickers on their private car" to look credible to Kings & Queens Funeral Services when they went to hire a hearse from them.
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