Private Schools Face Action Over Overpriced Materials
The Competition Commission of Pakistan has issued show-cause notices to 17 major private school systems for allegedly abusing their market dominance.
They are accused of forcing parents to buy branded notebooks, uniforms, and other school supplies exclusively from authorised vendors.
The action follows a suo motu inquiry prompted by multiple complaints from parents, guardians, and other stakeholders.
Complainants alleged arbitrary fee hikes, non-transparent sales practices, and the bundling of mandatory branded study materials.
Many families claimed that schools left them with no choice but to purchase expensive items, often significantly above market rates.
The schools under investigation include Beaconhouse, The City School, Lahore Grammar School (LGS), Headstart, Froebel’s, Roots International, and Roots Millennium.
Other systems named are KIPS, Allied Schools, Super Nova, Dar-e-Arqam, STEP School, Westminster International, United Charter School, and The Smart School.
The report found that students were effectively “captive consumers,” with schools controlling both the education and the market for ancillary products.
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Many “study packs” were reportedly up to 280% more expensive than similar items available in open markets.
Schools made continued enrollment conditional upon purchasing these branded products and appointed exclusive vendors, limiting opportunities for small stationery and uniform sellers.
The inquiry concluded that these practices violated Sections 4(1) and 4(2)(a) of the Competition Act, 2010.
Parents faced high switching costs, including limited school alternatives, transfer fees, and transportation constraints, leaving them little choice but to comply.
Private educational institutions account for nearly half of Pakistan’s student enrollment, placing them in a position of significant influence.
Rising inflation has already strained household budgets, and costly branded supplies increase financial pressure while fuelling commercialization concerns.
The CCP has directed the seventeen school systems to respond in writing within fourteen days and to appear before the Commission through authorised representatives.
Failure to comply may result in ex-parte proceedings, with potential penalties of up to 10% of annual turnover or Rs 750 million, whichever is higher.
