CCP issues notices to major private schools over mandatory branded supplies

November 21, 2025 (MLN):  The Competition Commission of Pakistan (CCP) has issued show-cause notices to seventeen leading private school systems for allegedly forcing parents to purchase expensive, logo-branded notebooks, uniforms, and other school supplies exclusively from authorized vendors.

The move aims to protect millions of students and their families from unfair pricing practices.

The action follows a suo motu inquiry initiated after numerous complaints from parents, guardians, and other stakeholders, who reported arbitrary fee hikes, opaque selling practices, and mandatory branded study materials that left families with little choice, according to a press release issued.

Schools under scrutiny include Beaconhouse, 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. Together, these networks operate hundreds of campuses nationwide, educating millions of students.

The CCP found that parents were required to buy notebooks, uniforms, and other items exclusively from school-authorized vendors, often bundled into compulsory “study packs” sold online or through designated outlets.

Students were not allowed to use generic products from the open market. The Commission noted that each school effectively enjoyed a 100% market share over enrolled students, making them “captive consumers,” while the market for school supplies became a “tied” market.

The inquiry revealed that study packs were priced up to 280% higher than similar products in the open market, and schools made continued enrollment conditional on purchasing these secondary products.

Exclusive vendor arrangements restricted thousands of small retailers from competing, and the practice violated Sections 4(1) and 4(2)(a) of the Competition Act, 2010. High switching costs, including limited school options, transfer fees, and transportation challenges, left parents with little alternative.

Private schools account for nearly half of all student enrollments in Pakistan, and with inflation already straining household budgets, the additional cost of overpriced branded materials has raised concerns about excessive commercialization in education.

The CCP has directed the seventeen schools to submit written responses within 14 days, appear before the Commission through authorized representatives, and explain why enforcement actions under Section 31 and penalties under Section 38 should not be imposed.

Failure to comply may result in ex-parte proceedings, with fines of up to 10% of annual turnover or Rs750 million, whichever is higher.

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