Competition Commission warns schools about exclusive supply agreements for school uniforms

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Education News

Competition Commission,Schools,Exclusive Supply Agreements

The Competition Commission has warned schools about exclusive supply agreements with manufacturers for school uniforms, stating that it limits consumer choice. Schools found guilty could face prosecution and penalties. Stakeholders call for action against non-complying institutions.

While cash-strapped parents grappling with the high costs of school uniforms have welcomed the Competition Commission’s (CC) warning to schools about exclusive supply agreements with manufacturers, some stakeholders have called on the watchdog to take action against non-complying institutions. The CC warned that schools found guilty of entering into exclusive agreements that limit a consumer’s ability to have a choice on uniform supplier, could face prosecution and hefty penalties.

Commission spokesperson Siyabulela Makunga told Weekend Witness that competition in the supply of school uniforms is imperative as manufacturers and sellers know that they need to offer cheaper prices to gain a greater market share. He said these cheaper prices must benefit parents. Makunga said that despite the importance of the competition, many schools have hindered the ability of the market to be competitiv

 

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