October 1, 2020

CFTC Fires a warning shot to independent schools

CFTC Fires a warning shot to independent schools

CFTC Fires a warning shot to independent schools

By Mike Gwadani

The Competition and Fair Trade Commission (CFTC) says it will fine all independent schools in the country found engaged in prohibited unfair trading or anti-competitive practices.

File Photo: class in session

In a statement released on May 1, 2020 signed by CFTC Executive Director James Kaphale the commission says it has noted that there are some independent schools that are taking advantage of the global corona virus pandemic to engage in prohibited and anti-competitive practices.

“According to market intelligence received by the commission some independent schools are engaged in discussions with each other and sharing information about the level of school fees to be applied to online learning program,” reads part of the statement.

The statement also says sharing of commercial information such as pricing intentions or pricing formulae among competitors constitutes collusion which is “blatant infringement of section 35 of the Competition and Fair Trading Act”.

The statement further says that likewise it is an offense for competitors to agree on the level of discount or free reduction to be applied.

“While the commission applauds the essential services provided by independent schools to the lives of many children it is important that the services are delivered within the confines of the CFTA and Consumer Protection Act” it reads.

Through the statement CFTC has since appealed to all independent schools to directly engage parents and come up with a win-win scenario that allows the schools to continue functioning as a businesses without unfairly exploiting parents who want their children to learn.