Schools' uniform rules may be illegal

Schools may be breaking the law by insisting that uniforms be bought at one supplier, the Commerce Commission warns.

The commission has been investigating complaints about the high cost of kitting out children for school uniforms.

It has just issued guidelines for the supply of school uniforms, which can cost more than $1000 at some schools, after an investigation into sole supplier agreements between school boards and uniform manufacturers.

The guidelines warn that some uniform supply arrangements could breach the Commerce Act by restricting competition and bumping up prices.

"If schools are in doubt as to whether their conduct risks breaching the act, independent legal advice is recommended," the guidelines say.

The commission found uniform makers paid some schools in return for exclusive supply rights.

Parents faced high uniform costs as a result, without the ability to seek better deals from other suppliers.

"Buying school uniforms is a significant cost for parents," said Deborah Battell, the commission's director of competition.

"While exclusive arrangements can provide benefits for schools, such as rebates or gifts to support school activities, they also reduce parental choice and can result in increased prices."

The Commerce Act bans conduct that restricts competition.

Its scope extends to schools when they enter agreements for the sale or retail supply of uniforms.

Most secondary school pupils and some primary and intermediate pupils are required to wear uniforms.

The commission urged schools to go through a competitive tender process for uniform suppliers to ensure the best deal, to be transparent about financial benefits they received, and to tell parents why exclusive supply deals were signed.

School Trustees Association president Lorraine Kerr said cash-strapped boards would always try to save money where they could.

"The suggestion that they might breach the Commerce Act is something we're going to have to make them all aware of."

- © Fairfax NZ News