Schools urged to settle with Competition Commission in uniform price fixing saga

The Competition Commission has gazetted a memorandum of understanding with the Federation of Governing Bodies of South African Schools (Fedsas) over uniforms.

The commission instituted investigations and conducted a survey into the industry after receiving complaints about the high prices last year.

The report revealed anti-competitive behaviour where there are agreements with a number of schools and a single supplier.

Under a new agreement, Fedsas is encouraging schools to come clean about any such deals, and try to reach settlements over that unlawful behaviour.

Fedsas Deputy CEO, Jaco Deacon says if the schools do not comply, investigations will lead to a 'stiff' financial penalty.

I think it is a groundbreaking agreement that, instead of prosecuting schools, we have got a memorandum of understanding. We will cooperate and work to be part of the advocacy campaign to assist schools to comply with the legislation.

Jaco Deacon, Fedsas Deputy CEO

It's important for parents at schools to also hold the governing body and school accountable, to say we are aware of this agreement, we are aware that we must comply...rather be proactive than get fined at the end of the day.

Jaco Deacon, FEDSAS Deputy CEO

The Competition Commission is open to talking to schools. Rather go to the commission, get your procedures in place. The schools who are stubborn and don't want to cooperate, they will be in for a tough run with the commission and we won't be able to assist.

Jaco Deacon, FEDSAS Deputy CEO

Click on the link below to hear more from Deacon...


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