Muhammad Hanif, father of a child studying in Class VI at a private school, is visibly happy that the Competition Commission of Pakistan has taken notice of the alleged anti-competitive practices of many private-schools chains across the country.

The CCP, recently, issued show cause notices to 17 private school systems of the country for alleged cartelisation by compelling parents to purchase high-priced, logo-branded notebooks, workbooks and uniforms from school-authorised vendors.

The enforcement action follows a detailed enquiry initiated following complaints from parents, guardians and other stakeholders. The enquiry faced many obstacles.

The commission had received complainants alleging 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.

“This is a highly appreciable intervention. The commission has acted to ease the burden on millions of parents struggling to meet both ends meet,” Hanif says. “They have been forcing us to get the uniform and notebooks from designated shops. Those vendors charge high prices for ordinary supplies available in the market on cheaper rates.”

The CCP’s enquiry revealed that in many cases parents were forced to buy logo-bearing notebooks, workbooks, uniforms and other products from school-authorised outlets.

“We have to travel to another corner of the city to get the uniform from a particular shop for our child as school does not allow us to get the things from any other shop,” Mahnoor Khan, a mother of two school-going children says. “This is totally unfair. There is no healthy competition.”

In some cases, schools sold compulsory “study packs” through online portals or designated vendors. The students were prohibited from using generic notebooks or uniforms purchased from the open market.

The CCP inquiry also found that some study packs were up to 280 percent more expensive than similar items available in the market.

According to the CCP, mandatory branded supplies and restrictive trading conditions violate the Competition Act, 2010. 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 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,” the report observed.

Following the issuance of show cause notices to 17 school systems, four have so far submitted replies. According to a CCP official, the commission will now formally hear the case, giving a fair opportunity to the schools and parents and other stakeholders to give their point of view. “Failure to comply may result in ex parte proceedings. Under the law, the CCP may impose a penalty of up to 10 per cent of the annual turnover or Rs 75 million, whichever is higher, for such violations. The action has been taken to safeguard millions of school-going children and their families from unfair pricing practices,” the official said.

CCP Chairman Dr Kabir Ahmed Sidhu has said that the education sector is of critical public interest, directly affecting millions of households and reiterated the Commission’s commitment to promoting fair competition, protecting consumer welfare and ensuring that proceedings are conducted in a “transparent, impartial and lawful manner.”

According to the commission, several school systems sought extensions to file their responses and after considering the requests, the CCP extended the deadline for submission of replies until December 30, 2025, to ensure due process and provide all parties a fair and transparent opportunity to be heard.

The author is a staff reporter. He can be reached at [email protected].