at the old rates (2014-15).
The school communication conveyed to parents that please note that this is rapidly developing situation and if the present circumstances change and/or the ordinance is modified the School reserves its right to recover the fees at increased rates from 2015-16.
In order to probe cartelisation of elite schools for hiking unjustified fee structure, the CCP had issued notices to Chief Executive Officer (CEOs) and Board of Directors of 8 schools chain for providing required information in seven days.
As a result of refusal of elite schools to provide the required information to ascertain anti-competitive behaviour owing to hike in fee structure without having any justified reasons, the CCP by showing its muscles issued order binding the CEOs and members of board of directors of 8 schools to share information. The CEOs and directors of private education institutes that were issued orders included the City School, Beaconhouse, Elementary Montessori School, Headstart School, Roots Millennium School, The Lahore ALMA, LACAS and Salamat School System.
“The findings of the inquiry will determine its fate and if the Commission decides to proceed against them then heavy penalty amounting to billions of rupees can be imposed,” said the sources.
The CCP has issued an order under Section 36 of the Competition Act, 2010 (the ‘Act’) to the CEOs and directors of eight private education institutions for the provision of information required for assessing allegations of anti-competitive practices - such as unreasonable increase in school fees and tying of products and services - against these schools.
The Commission is currently investigating allegations of potential anti-competitive behaviour by private education institutions across Pakistan. The Commission received more than 1,000 complaints from all over the country. Accordingly, around 123 schools in various parts of the country were asked to provide relevant information vis-à-vis their fee structures, student’s strength, reasons for increasing fees and allied charges, etc.
Although many institutions provided the information, others either did not or replied with incomplete and irrelevant information, despite repeated reminders by the Commission.
Thus the CCP deemed it necessary to issue an order to such institutions under Section 36 of the Act. Section 36 empowers the Commission to issue a special or general order calling upon undertakings to furnish information that the Commission deems necessary or useful for discharging its functions as envisioned in the Act. Failure to provide the requisite information may make the CEOs and directors of these undertakings liable to strict penalties and other sanctions under Section 38 of the Act.