Firms warned over price fixing of supplies to disabled students

Following concerns that there may have been price-fixing, the Competition and Markets Authority (CMA) has cautioned companies supplying goods and services to disabled university students.

The Competition and Markets Authority (CMA) has sent advisory letters to a number of firms, reminding them of their obligations under competition law, after learning of allegations that some suppliers colluded over the price of key services and equipment.

Disabled students who are eligible can receive funding through the Disabled Student Allowances grant scheme, managed by the Student Loans Company (SLC), which acts on behalf of the UK and Welsh governments’ education departments. Under the current system, an independent needs assessor will provide SLC with recommendations for products and services along with quotations from suppliers, and SLC will work with the student to put the support in place.

The CMA is concerned that SLC – and so ultimately the taxpayer – may have paid over the odds for certain goods and services because some suppliers agreed prices before providing quotations. This alleged activity could also have reduced the overall amount which disabled students have available for purchasing equipment through the scheme.

While the CMA has been considering these allegations, SLC has told the CMA that it is making a number of changes to the way it procures goods and services for disabled students. The changes will increase price transparency and competition amongst companies, and should therefore limit the potential for anti-competitive behaviour to take place.

The CMA has not made a legal finding as to whether competition law has been broken at this stage, but it will keep this sector under review, remaining open to the possibility of further action if these concerns are not fully addressed.

The CMA runs a ‘Cheating or competing?’ campaign, which aims to educate businesses about which practices are illegal and urges people to come forward if they suspect a business has taken part in cartel behaviour, such as rigging contracts or price fixing. It has also issued a range of guidance to help businesses understand more about how to comply with competition law.