THE Competition and Tariff Commission has warned schools
against forcing parents to buy uniforms from specific outlets or individuals.
In a statement yesterday, the commission said such
practices were unlawful as they create monopolies. It pledged to investigate
alleged malpractices by business, schools and individuals.
“Allegations of anti-competitive practices in the supply
and distribution of school uniforms including compelling parents or guardians
to buy from a specific supplier and trying and bundling when selling uniforms,
among others, have come to the attention of the Commission,” it said.
“Section 2 of the Competition Act (Chapter 14;28) defines a
restrictive practice as any business practice or method of trading which
restricts competition directly or indirectly to a material degree in that it has
or is likely to have any one or more of the following effects; enhancing or
maintaining the price of any commodity or service, preventing the production or
distribution of any commodity or service by the most efficient or economical
means, preventing or retarding the expansion of the existing market for any
commodity or service or the development of new markets therefore and limiting
the commodity or service available due to tied or conditional selling.”
It is against this background that the commission warned
businesses or schools engaging in such malpractices to stop.
The commission urged business or schools to adhere to
stipulated guidelines warning anyone caught on the wrong side of the law would
be dealt with in accordance with the law.
“Section 33 of the Act empowers the Commission to
investigate, as it considers necessary, to ascertain the extent to which any
order has been or is being complied with and any person who contravenes or
fails to comply with any provision of an order with which it is his duty to
comply, shall be guilty of an offence and liable to a fine not exceeding level
nine or to imprisonment for a period not exceeding two years or to both such
fine and such imprisonment,” said the Commission.
The commission said Section 28 of the Competition Act
empowers it to investigate any type of business agreement, arrangement,
understanding or method of trading which in its is being or may be adopted for
the purpose of or in connection with the creation or maintenance of a
restrictive practice.
“The Commission will therefore be commissioning a market
inquiry into the school uniforms sector to establish the allegations and assess
if there is any anti-competitive practice in the supply and distribution of
school uniforms,” said the Commission.
The Competition and Tariff Commission is a statutory body
established under the Competition Act.
Its mandate include preventing and controlling restrictive
practices, prohibition of unfair practices and combating creation of
monopolies. Herald
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