Pakistan’s top private schools face CCP action for forcing parents to buy overpriced supplies

The Competition Commission of Pakistan (CCP) has issued show-cause notices to 17 major private school systems over allegations of abusing their dominant position by forcing parents to buy costly, logo-branded notebooks, workbooks and uniforms exclusively from school-authorised suppliers.

The move, the CCP said, aims to protect millions of students and their families from unfair and anti-competitive pricing practices.

The CCP in a handout said the enforcement action follows a detailed suo motu inquiry initiated on the basis of numerous complaints from parents, guardians, and other stakeholders. Complainants alleged arbitrary fee hikes, non-transparent selling practices, and the bundling of mandatory branded school supplies, effectively leaving families with no choice but to purchase these items at inflated prices.

The school systems under scrutiny include, 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, among others. These school networks operate hundreds of campuses nationwide and collectively educate millions of students, giving them considerable influence over enrolled families.

JI Karachi links school dropouts to corruption in Sindh

The CCP’s inquiry revealed that parents were mandated to buy logo-bearing notebooks, workbooks, uniforms, and other ancillary school products from exclusive school-authorised outlets. In several instances, schools sold compulsory “study packs” through online portals or designated vendors, with students prohibited from using generic notebooks or uniforms from the open market.

The CCP defined the relevant markets as the provision of education services to enrolled students, where each school enjoyed a 100% market share, making students “captive consumers”, and the market for ancillary school products, which became the “tied market.”

As per the inquiry report, many study packs were up to 280% more expensive than similar items available in open markets.

Leading school systems engaged in tying arrangements, making continued enrollment conditional upon purchasing secondary products such as notebooks and uniforms.

Schools appointed exclusive vendors, foreclosing the market for thousands of small stationery and uniform sellers nationwide, the report said.

It said mandatory branded supplies and restrictive trading conditions were found to be violating Sections 4(1) and 4(2)(a) of the Competition Act, 2010. High switching costs, such as limited school options, substantial transfer fees, and transportation constraints left parents with no viable alternative, enabling schools to enforce these practices without resistance.

The CCP observed that these practices restricted market access, harmed small retailers, and limited consumer choice across Pakistan.

Private educational institutions account for nearly half of all student enrollment in the country. With inflation already straining household budgets, the imposition of overpriced branded materials further burdens families and raises concerns about excessive commercialisation within the education sector.

Private schools: CCP begins probe against exorbitant fees

CCP has directed the 17 school systems to submit written responses within 14 days, appear before the commission through duly authorised representatives, and explain why enforcement orders under Section 31 and penalties under Section 38 should not be imposed. Failure to comply may result in ex-parte proceedings.

Under the law, CCP may impose a penalty of up to 10% of the annual turnover or Rs750 million, whichever is higher, for such violations.