By Staff Reporter
THE Competition and Tariff Commission has invoked the requisite law to investigate schools compelling parents and guardians to buy uniforms and textbooks from their preferred and exclusive suppliers in return for enrolment.
The commission said the practice is restrictive and unfairly creates barriers for other market players, thereby undermining the spirit of competition though conferring unfair advantage to one supplier in violation of the law.
It also said the practice is not only unfair, but exploits parents.
Preliminary investigations by the commission are contained in a Government Gazette published last Friday where it undertook a probe of Queen Elizabeth School, which is facing allegations of forcing parents to buy uniforms and textbooks from their preferred suppliers in return for enrolment.
The probe is expected to bring sanity, particularly boarding schools where parents can only get places for Form One and Form Five for their children provided they buy uniforms and textbooks at chosen suppliers.
Parents have complained about the practice as they say some of them are tailors who can produce their own uniforms and jerseys coupled by the fact that some of the chosen suppliers sell poor quality of products.
“It is hereby notified, in terms of section 28 of the Competition Act [Chapter 14:28] that the Competition and Tariff Commission has commenced an investigation into alleged restrictive practices by Queen Elizabeth School. Section 28 of the Act empowers the Commission to undertake an investigation into any restrictive practice, as defined in terms of section 2 of the Act, which the Commission has reason to believe exists or may come into existence,” reads the notice.
It was noted that Queen Elizabeth was one of the schools that were forcing parents to buy uniforms and stationery during enrolment of Form One and Form Five pupils.
“It is alleged that Queen Elizabeth School engaged in exclusive dealing in the production, selling, distribution of school uniforms and textbooks to prospective Form One and Form Five learners during enrolment. It is alleged that the school was forcing parents and learners to buy school uniforms and textbooks from only one supplier, i.e., Giplic Fashions (Scott Adams) and Gramsol Publishing, respectively,” reads the notice.
“It is further alleged that before confirmation of admission, one should purchase uniforms or textbooks from the school, or the preferred suppliers. The Commission has preliminary concerns that the alleged practice may result in parents and learners’ choices of school uniform or textbook suppliers being limited to only Giplic Fashions and Gramsol Publishing.”
The Commission noted that the practice, if allowed to continue will close the door for other market players, thereby creating an unfair advantage for the preferred suppliers.
“The practice may also create barriers to entry or foreclose other suppliers in the relevant market and lead to exploitation of parents and learners. It should be noted that the commencement of an investigation neither presupposes that the conduct being investigated is anti-competitive nor that Queen Elizabeth School and the suppliers mentioned have violated the provisions of the Act,” reads the notice.
One of the objectives of the investigation is to establish whether indeed the school is restricting parents on procurement of uniforms and textbooks and if so, whether it had impact on competition.
“The Commission will, as provided in section 28 of the Act, conduct an investigation to establish whether the alleged practices directly or indirectly restrict competition. In view of the foregoing, the Commission hereby gives notice to all interested stakeholders and the general public to submit their written representations to the Commission stating how they have been affected by the issues under investigation, not later than 14 days from the date of publication of this notice. Emails may be sent to director@competition.co.zw or enquiries@competition. co.zw or submit hard copies to: The Director Competition and Tariff Commission, No. 23, Broadlands Road, Emerald Hill, Harare,” reads the notice.
“NB: All representations submitted to the Commission will be treated in strict confidence and will only be used for the purpose of this investigation.”
Section 28 of the Competition Act confers power on the commission to investigate restrictive practices, mergers and monopoly situations.
It carries out such investigation as it considers necessary, including any type of business agreement, arrangement, understanding or method of trading which, in its opinion has the effect on restrictive practice.
It also empowers the commission to investigate monopoly situation in business.
In its investigation, the commission shall have the powers that are conferred upon a commissioner by the Commissions of Inquiry Act.
