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Private schools face overpricing action

⏱ 2 minute read
Private schools face overpricing action

ISLAMABAD: The Competition Commission of Pakistan (CCP) has issued show-cause notices to 17 major private school systems over allegations of abusing market dominance by forcing students to purchase expensive logo-branded notebooks, workbooks, and uniforms.

The practice, known as “tying” or conditional selling, violates the Competition Act, the commission said. Several schools have reportedly made secret deals with specific vendors, leading to logo-branded items being sold up to 280% above market prices.

The move comes after complaints prompted the CCP to take suo moto action. Students, after admission, often become ‘captive consumers’ and parents are left unable to buy cheaper alternatives from the open market.

The affected schools include Beaconhouse, Westminster, City School, Headstart, LGS, Froebel’s, Roots International, Roots Millennium, CAPS, Allied Schools, Supernova, Dar Al Arqam, STEP, United Charter, and Smart School. These private school systems operate thousands of campuses across the country, impacting millions of students and parents.

Small stationery and uniform vendors have also suffered due to the enforced purchases. Because of high admission costs and travel constraints, parents are often unable to switch schools, leaving them with little choice but to comply with the schools’ commercial decisions.

The CCP has directed the schools to submit a written response within 14 days. Authorities warned that private schools could face fines of up to Rs 75.5 million for violations.

For parents and students, the commission’s action comes as a sigh of relief, signaling a step toward fairer practices in private education.

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