Competition Commission rules on ‘exclusive’ school uniforms

While cash-strapped parents grappling with the high costs of school uniforms have welcomed the Competition Commission’s (CC) warning to schools about exclusive supply agreements with manufacturers, some stakeholders have called on the watchdog to take action against non-complying institutions.

The CC warned that schools found guilty of entering into exclusive agreements that limit a consumer’s ability to have a choice on uniform supplier, could face prosecution and hefty penalties.

Commission spokesperson Siyabulela Makunga told Weekend Witness that competition in the supply of school uniforms is imperative as manufacturers and sellers know that they need to offer cheaper prices to gain a greater market share. He said these cheaper prices must benefit parents.

Makunga said that despite the importance of the competition, many schools have hindered the ability of the market to be competitive.

“The number of schools that have exclusive agreements with suppliers is not increasing that much, but many schools have kept their procurement policies unchanged and, consequently, many schools still have only one supplier,” Makunga added.

He explained: “Exclusive agreements means that the school appoints one supplier from which parents purchase school uniform items.”

He added that in an investigation conducted by the commission, the appointed retailers and suppliers of the respective schools’ unique school uniforms were not chosen by way of an open competitive or tender process.

Makunga seemingly acknowledged how pertinent the issue is by saying that ‘the cost of school uniform items represents a significant part of the costs of schooling and many South African parents struggle to afford schooling for their children’.

“Thus, we are trying to get the market for the supply of school uniforms to operate competitively so that parents can get uniforms at a price that is affordable.”

SAHRC weighs in

The South African Human Rights Commission (SAHRC) has also weighed in on the matter and recommended a cap on the price of school uniforms and asked the National Department of Basic Education (NDBE) to be more active in helping reduce the cost of school uniforms.

“It is imperative for the NDBE to conduct a baseline assessment to determine a reasonable cap on the costs of basic school uniforms, considering the socioeconomic circumstances of the country,” said the commission.

The SAHRC stressed the importance of addressing expensive school uniforms by saying that affordable uniforms ‘reduce disparities among students and promote a more inclusive educational environment’.

Ruling welcomed

KZN Education spokesperson Muzi Mahlambi said the department welcomed the ruling by the CC as it would assist government in ‘creating a better life for all’.

A local teacher said the commission has been monitoring monopolies at former Model C schools for a while.

“The Competition Commission said that they would be taking action in the past, but to date, not a single school has been found to be in violation. They must match their words with action,” said the teacher.

A leading clothing and school uniform retailer, Asmalls, which is involved in several community outreach programmes, said they agreed wholeheartedly with the Competition Commission that uniforms should be made as affordable as possible.

“Chain stores, like ours, do our best to get the best prices for our customers and therefore we agree with the Competition Commission taking action that is in the public interest.”

Pragalathan Gounden, the principal of Raisethorpe Secondary School, said while he encouraged parents to support the school’s uniform shop that stocks high quality uniforms that adhere to the school’s dress code, the school supports parents having the right to shop around for the best deal possible.

The South African Local Government Association has also urged government to encourage the local manufacture of uniforms in a bid to reduce costs. Chairperson Arthur Ntuli said the high costs of school uniforms was a contributing factor to the drop-out rate of pupils from schools.

“Government can provide financial assistance or subsidies to local uniform manufacturers, thus ensuring that the cost of production is reduced,” said Ntuli.