The Competition Commission of Pakistan (CCP) has issued show-cause notices to 17 major private school systems for allegedly abusing their dominant position by compelling parents to purchase expensive logo-branded notebooks, workbooks and uniforms exclusively from school-authorised vendors.
According to reports, the move aims to safeguard millions of school-going children and their families from unfair pricing practices and follows a detailed suo motu inquiry initiated after numerous complaints from parents, guardians and other stakeholders.
Complainants accused schools of arbitrary fee hikes, non-transparent selling practices and bundling mandatory branded supplies, leaving families with no choice but to purchase these items at inflated prices. Many parents reported that schools were blocking the use of cheaper non-branded alternatives, further straining household budgets.
The schools 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.
Collectively these networks operate hundreds of campuses nationwide and educate millions of students, giving them considerable influence over enrolled families.
The CCP’s inquiry revealed that parents were mandated to buy logo-bearing notebooks, workbooks, uniforms and other ancillary products from exclusive school-authorised outlets. In several cases, schools sold compulsory “study packs” through online portals or designated vendors, prohibiting students from using generic notebooks or uniforms available in the open market. The Commission defined the relevant markets as the provision of education services where each school enjoyed a 100% market share, making students “captive consumers,” and the market for ancillary school products which became the “tied market.”
The inquiry report concluded that 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 also appointed exclusive vendors, foreclosing the market for thousands of small stationery and uniform sellers nationwide. The CCP found that mandatory branded supplies and restrictive trading conditions violated Sections 4(1) and 4(2)(a) of the Competition Act, 2010.
High switching costs, including limited school options, substantial transfer fees and transportation constraints, left parents with no viable alternatives, enabling schools to enforce these practices without resistance. The CCP observed that such practices restricted market access, harmed small retailers and limited consumer choice across Pakistan. With private educational institutions accounting for nearly half of all student enrollment in the country, the imposition of overpriced branded materials has further burdened families already struggling with inflation, raising concerns about excessive commercialization in the education sector.
The CCP has directed the 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, the Commission may impose a penalty of up to 10% of the annual turnover or Rs750 million, whichever is higher, for such violations.