Competition Commission’s school uniform guidelines seem to be making life easier for parents

School uniform guidelines have now been in operation for a year and seem to be working after the Competition Tribunal confirmed a consent agreement with a school uniform supplier to stop entering into exclusive agreements with schools at the end of 2021.

For consumers, this means that parents cannot be forced by a child’s school to buy school uniforms from specific suppliers to ensure more competition regarding price. Parents can now shop around to find the best price.

While there is still some confusion about whether the guidelines are enforceable, parents should know that the consent agreement is an order of the Tribunal, which means that it carries the same weight as an order of the high court.

The consent agreement was reached after the Competition Commission concluded that the exclusive agreements between McCullagh and Bothwell and various schools likely contravened sections 5(1), 8(a) and/or 8(c) of the Competition Act.

McCullagh and Bothwell disputed this and did not admit liability, contending that it did not engage in any unlawful conduct in contravention of the Competition Act, as described in the consent agreement.

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What does this mean for schools and suppliers?

Suppliers have to ensure that any new supply agreements with schools do not contain a clause that appoints it as the sole stockist of school uniform items. They also had to change existing supply agreements by adding a termination date of no later than five years after the agreement was signed.

Therefore, new supply agreements must be limited to a period of no more than five years to increase competition, reduce barriers to entry and ensure cheaper prices in the school unforms market.

Long exclusive supply agreements allow school uniform suppliers to charge customers higher prices and prevent other potential suppliers from entering the market and competing for customers.

Khanyisa Qobo, divisional manager for advocacy at the commission, told Radio 702 this week that the commission has found a greater level of compliance, although it still received about 190 complaints in 2022.

She said half of these complaints were resolved through speaking to the schools and governing bodies, while the others were not relevant or did not contain sufficient information.

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The importance of a school uniform

Juané van der Merwe, deputy CEO and head of legal services at Fedsas explains that the dominant school culture values school uniforms as a means of reducing the appearance of economic disparity and focusing learners’ attention on learning rather than physical appearance and fashion.

“A school uniform also contributes to a sense of belonging and a sense of pride in the school. Having uniforms reinforces that sense of belonging to a community that children crave and defines the identity of a school.”

However, she points out that this can be done by using a few school uniform items that are unique to the school, while schools can also sell their school emblems to parents to sow onto uniforms to maintain the affordability of uniforms.

“Education is a basic human right and the cost of attending a public school should not prohibit children from access to quality education. It is our duty to ensure that the cost of a school uniform or stationary package or electronic equipment does not become a barrier to access to education.”

Fedsas signed a Memorandum of Understanding (MoU) with the commission to establish cooperation in advocating for schools to comply with competition law principles and assist with monitoring school compliance and resolution of parent complaints. 

According to the MoU, Fedsas will resolve all complaints received through mediation and taking all reasonable steps to resolve the dispute. Fedsas received no complaints for the 2023 school year from its members and Van der Merwe believes this is the result of effective advocacy and monitoring.

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Schools making a profit from selling uniforms

While most schools have a clothes bank or second-hand clothing shop, some schools have started to sell its new uniforms as well, adding their own mark-up.

Now people are wondering if schools should be in the business of selling school uniforms. Should schools make a profit from selling uniforms?

Van der Merwe says public school governing bodies are legally required to take all reasonable measures within its means to supplement the resources supplied by the state to improve the quality of education provided to all learners at the school.

“The limited financial support that schools receive from the state also requires them to generate alternative sources of funding. Schools in quintiles 1 to 3 receive only R8 per learner per school day, while schools in quintiles 5 receive only R 1.39 per learner per school day.”

She says these allocations must be used for all learning support material (LSM), non-LSM equipment and consumable items of an educational nature, including textbooks, learner desks and chairs, equipment for connectivity within the school and to the Internet, cleaning equipment, stationery for learners, electricity, water, rates and taxes, rental of equipment and audit fees.

“As schools cannot function optimally with only state support, they are forced to generate alternative income sources through fundraising measures. One way in to do this is to sell school uniforms. However, these fundraising measures must promote the interests of the school and the cost of the school uniform should not place an unaffordable financial burden on parents.”

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Stationery packs

Many schools also require parents to buy a stationery pack for each child for the new school year and parents often complain that they can buy the individual items elsewhere.

Van der Merwe says Fedsas did not receive any complaints about this.

“However, it is important to note that parents cannot be forced to buy stationery from a single supplier. A list of the stationery required for each grade should be provided and parents can then choose to use a specific stationery supplier or shop around for a better deal.”