The Competition Commission of Pakistan (CCP) has issued show-cause notices to seventeen major private school systems for allegedly abusing their dominant position by compelling parents to purchase costly, logo-branded stationery and uniforms exclusively from school-approved vendors. The move aims to protect millions of families from what the CCP describes as unfair and anti-competitive pricing practices.
The enforcement action stems from a suo motu inquiry launched after widespread complaints from parents and guardians. Complainants reported arbitrary fee hikes, non-transparent pricing, and mandatory branded “study packs,” leaving families with no choice but to buy overpriced items. Many parents said schools barred the use of affordable, non-branded alternatives available in the open market.
Schools under scrutiny include Beaconhouse, The City School, Headstart, LGS, Froebel’s, Roots International, Roots Millennium, KIPS, Allied Schools, Dar-e-Arqam, STEP School, Super Nova, Westminster International, United Charter, and The Smart School, among others. These networks operate hundreds of campuses and educate millions, giving them significant control over enrolled families.
The CCP inquiry found that students were effectively treated as “captive consumers.” Schools imposed strict requirements to purchase logo-bearing notebooks, workbooks, and uniforms from exclusive vendors or online platforms. In some cases, students were prohibited from using generic alternatives.
The Commission defined each school’s student base as a distinct market in which the institution held a 100% share, enabling it to enforce tying arrangements and restrictive conditions.
The inquiry revealed that many branded study packs cost up to 280% more than comparable products in open markets. Exclusive vendor arrangements also harmed thousands of small retailers nationwide by closing off market access. These practices were deemed violations of Sections 4(1) and 4(2)(a) of the Competition Act, 2010.
The CCP has directed all seventeen school systems to submit written responses within fourteen days and appear before the Commission. Failure to do so may result in ex-parte proceedings. Penalties can reach up to 10% of annual turnover or Rs. 750 million, whichever is higher, if violations are confirmed.
