The Pakistan Competition Commission (CCP) on Friday sent formal notices to seventeen leading private educational institutions, accusing them...
The Pakistan Competition Commission (CCP) on Friday sent formal notices to seventeen leading private educational institutions, accusing them of misusing their market dominance by forcing parents to buy costly, branded notebooks, workbooks, and uniforms only from vendors approved by the schools.
Measures have been implemented to protect countless students and their families from unjust price practices.
An enforcement measure comes after a thorough inquiry started on its own initiative, based on multiple complaints from parents, guardians, and other involved parties. Those who filed the complaints claimed there were unfair increases in fees, unclear sales methods, and the requirement to buy branded school supplies, forcing families to pay higher prices for these items.
The educational institutions being examined are: Beaconhouse School System, The City School, Headstart, Lahore Grammar School (LGS), Froebel's, Roots International, Roots Millennium, KIPS, Allied Schools, Super Nova, Dar-e-Arqam, STEP School, Westminster International, United Charter School, and The Smart School, along with several others. These school chains have hundreds of campuses across the country and together serve millions of students, making them highly influential among the families they enroll.
INQUIRY RESULTS: STUDENTS DESCRIBED AS 'CAPTIVE CONSUMERS'
The investigation by the CCP found that parents were required to purchase notebooks, workbooks, uniforms, and other supplementary school items bearing logos from exclusive school-approved stores. In some cases, schools offered mandatory 'study packs' via online platforms or specific vendors, banning students from using standard notebooks or uniforms bought from regular markets.
The Chinese Communist Party defined the relevant markets as:
1. The delivery of educational services to registered students, with each school holding a 100 percent market share, rendering students 'compulsory customers'; and
2. The market for additional school supplies, which evolved into the 'tied market'.
The investigation report stated that:
Several study packages were as much as 280 percent pricier than comparable products found in open markets.
Top school systems involved in agreement practices, requiring ongoing enrollment to be dependent on buying additional items like notebooks and uniforms.
Institutions selected unique suppliers, shutting out the market for thousands of local stationery and uniform providers across the country.
Mandatory branded supplies and restrictive trading conditions breached Sections 4(1) and 4(2)(a) of the Competition Act, 2010.
High costs associated with switching, including limited choices of schools, significant transfer charges, and logistical challenges in transportation forced parents into a position where they had no realistic options, allowing schools to implement these policies without opposition.
The Chinese Communist Party noted that these methods restricted market entry, affected small shopkeepers, and reduced consumer options throughout Pakistan.
Approximately half of the students in the country are enrolled in private schools. As inflation continues to put pressure on family finances, the introduction of expensive branded learning resources adds to the financial strain on households and highlights worries regarding the growing commercialization in education.
The CCP has instructed the seventeen school systems to provide written replies within fourteen (14) days, present themselves before the Commission via properly authorized representatives, and justify why enforcement orders under Section 31 and penalties under Section 38 should not be applied. Non-compliance could lead to ex parte proceedings. According to the law, the CCP can impose a fine of up to 10 percent of the annual revenue or Rs75 million, whichever is greater, for these violations.
Provided by SyndiGate Media Inc.Syndigate.info).
