CFTC orders Independent Schools Association of Malawi to stop fixing prices

The Competition and Fair Trading Commission has ordered Independent Schools Association of Malawi to cease and desist from engaging in anti-competitive business practices. This follows investigations the Commission conducted which established that the association was engaged in prohibited fixing of school fees.

Charlotte Wezi Malonda, Executive Director of the Competition and Fair Trading Commission said price fixing was a violation of Section 34 of the Competition and Fair Trading Act.

“Our investigations showed that ISAMA had been engaging in setting fees in order to reduce competition among members. Apart from setting the fees, the Association was also involved in developing a code of conduct aimed at regulating the conduct of members with regard to where to open schools, who to admit as students and who to recruit as teachers. This has all the elements of a hard core cartel,” said Malonda.

In view of this, the Commission has ordered ISAMA to issue a public withdrawal of the recommendation to set prices.
Notes for Editors

1. CFTC launched investigations against ISAMA on its own volition using powers vested under Section 8(2)(a) of the Competition and Fair Trading Act.
2. Under Section 34 of the Competition and Fair Trading Act, it is an offence for trade associations to set prices for their members.
3. Failure to comply with the Commission’s orders shall result in criminal prosecution in accordance with Section 50 and 51 of the Act.

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