Competition Commission, Media Release, 3 November 2014

 

 

Commission concerned about exclusive school wear agreements

 

The Commission has noted with great concern the emerging trend of exclusive
agreements to supply school wear entered into between clothing manufacturers
and schools. It has emerged that schools enter into long-term exclusive
agreements with stockists or manufacturers of school clothing, rendering the
arrangements susceptible to contravention of certain provisions of the
Competition Act. 

 

The Commission has in the past conducted similar investigations into
different levels of the school uniform supply chain, in Gauteng and
Mpumalanga and found instances of breach of the Act. An initial assessment
has revealed that this could be a nation-wide practice amongst private and
public schools. 

 

In the latest case, a Cape Town parent lodged a complaint with the
Commission against a school and a specialist school wear retailer that
stocks unique school wear and sportswear range for over 60 schools in the
Western Cape.  The parent alleged that the school and most others in the
area have appointed a service provider as their sole stockist for school
uniforms, and that the prices charged for various uniforms are too high,
leaving consumers with no alternatives.  

 

As a growing concern, the Commission has intensified its advocacy efforts,
engaging with national and provincial departments of education, and school
governing bodies and other stakeholders regarding the potential
anticompetitive effects that may arise from exclusive agreements with school
garments providers. 

 

ENDS 

 

 

For more information: 

Mava Scott, Spokesperson  

012 394 3527/ 076 095 2350/ [email protected]

 

Themba Mathebula, External Communication Coordinator 

012 394 3325/ 084 896 0860/ [email protected]

 

 

From:
http://www.compcom.co.za/wp-content/uploads/2014/07/Commission-concerned-abo
ut-exclusive-school-wear-agreements.pdf

 

 

 

 

 

 

 

 

 

 

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