Business Maverick

UNFAIR PRACTICE

Competition Commission warns schools of legal action after 220 complaints about uniform purchases

Competition Commission warns schools of legal action after 220 complaints about uniform purchases
(Photo: Leila Dougan)

Karabo Motaung of the Competition Commission says the commission will prosecute schools that are limiting parents to buying uniforms from one supplier only.

The Competition Commission has confirmed the receipt of about 220 complaints relating to school uniforms in the first week of 2024. This is despite the commission having concluded agreements in 2022 with the likes of AdvTech, Curro, St Andrew’s School for Girls, Reddam House and McCullagh & Bothwell.

The complaints deal mainly with the widespread practice, by private schools in particular, of parents being able to purchase uniforms only from a specific supplier, often at a high cost.

Karabo Motaung of the Competition Commission says the commission can and will prosecute schools that are limiting parents to buying uniforms from one supplier only. 

“We are open to receiving more complaints from parents who are affected by this issue, and we encourage the public to come forward. Schools have been issued with guidelines and notified that this practice contravenes the Competition Act.”

In October last year, the South African Human Rights Commission (SAHRC) issued a report, noting that procuring school uniforms incurs expenses that must be borne in some cases by already financially disadvantaged caregivers. 

“These expenses may have a severe impact on the overall wellbeing of the household, especially when additional costs such as seasonal, extracurricular, and occasion-specific attire are considered,” the SAHRC report said.

Payment of school fees emerged as a top money stress factor, ahead of inflation and interest rates, for South Africans in the DebtBusters second annual Money Stress Tracker survey last year.

The payment of school fees as a top concern makes sense, given that at the end of 2022, the TPN Credit Bureau reported that more than 40% of school fee accounts in SA were in arrears. TPN further reported that 25% of parents did not make any sort of payment at all towards outstanding school fees.

Old Mutual Savings & Investment Monitor 2023 revealed that 11% of South Africans moved their children to less expensive schools last year. Fifty percent of South Africans told Old Mutual they were saving towards their children’s education, up from 43% last year, and 29% were using a stokvel to save for school fees or education costs.

Daily Maverick approached Curro Holdings for comment and was told the company was unable to offer any response as it was in a closed period. DM

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