Pakistan CCP Cracks Down on Schools Forcing Parents to Buy Costly Supplies. The Competition Commission of Pakistan (CCP) has issued show-cause notices to 17 major private school systems for allegedly forcing parents to buy expensive, logo-branded notebooks, workbooks, and uniforms from selected vendors.
The move aims to protect millions of families from unfair pricing practices and the growing commercialisation of education.
Why the CCP Took Action
The enforcement action began after a suo motu inquiry, launched following several complaints from parents and guardians.
Parents reported:
- Sudden and unjustified fee hikes
- Non-transparent selling practices
- Mandatory branded school supplies sold at high prices
- No option to buy affordable, non-branded alternatives from local markets
Many families told the CCP that schools were pushing unnecessary branded items and blocking access to cheaper stationery and uniforms.
Schools Under Investigation
The notices have been issued to leading private school networks, including:
- Beaconhouse School System
- The City School
- Lahore Grammar School (LGS)
- Roots International
- Roots Millennium
- Froebel’s
- Headstart
- KIPS, Allied Schools, Dar-e-Arqam, STEP School, Super Nova, Westminster International, United Charter School, The Smart School, and others
These networks operate hundreds of campuses and educate millions of students, giving them strong influence over enrolled families.
Inquiry Findings: Students Treated as “Captive Consumers”
The CCP inquiry uncovered several restrictive practices:
Mandatory Branded Purchases
Parents were required to buy logo-bearing notebooks, workbooks, and uniforms only from school-authorized outlets.
Some schools sold compulsory “study packs” exclusively through online portals or designated vendors. Students were not allowed to use generic notebooks or uniforms purchased independently.
Tied Markets and Controlled Pricing
The CCP defined:
- Education services as the primary market, where each school effectively holds a 100% share because students cannot switch easily
- Branded stationery and uniforms as the tied, secondary market
Key findings include:
- Some study packs were up to 280% more expensive than similar items in open markets.
- Schools created a “tying arrangement,” linking student enrollment to mandatory purchases.
- Exclusive vendors were appointed, shutting out thousands of local stationery and uniform sellers.
- These actions violated Sections 4(1) and 4(2)(a) of the Competition Act, 2010.
Limited Alternatives for Parents
The CCP highlighted that parents faced high switching costs, including:
- Limited school options nearby
- High transfer fees
- Transportation challenges
These barriers allowed schools to enforce restrictive policies without fear of losing students.
The CCP concluded that these practices harm small retailers, reduce consumer choice, and impose extra financial stress on families—especially at a time of rising inflation.
CCP’s Next Steps
The seventeen school systems have been directed to:
- Submit written responses within 14 days
- Appear before the Commission through authorized representatives
- Explain why penalties should not be imposed under Section 31 and Section 38
Failure to comply may lead to ex-parte proceedings.
Under the law, CCP can impose penalties of up to 10% of annual turnover or Rs. 750 million, whichever is higher.
Conclusion
The CCP’s action against major private schools marks an important step toward protecting parents from overpriced branded stationery and uniforms. By questioning these restrictive practices, the Commission aims to ensure transparency, fair competition, and relief for families affected by rising educational costs in Pakistan.
