Strathallan fined for sharing fee details

Perthshire school one of 50 accused of breaking competition laws

News, 28 February 2006

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Strathallan School in Perthshire is among 50 UK independent schools fined for being part of a cartel that kept fees at too high a level.

The Office of Fair Trading (OFT) accused the 50 schools of breaking competition laws by sharing information about rises in fees with each other. Each of the schools will pay a £10,000 fine, as well as an ex-gratia contribution of around £60,000 to a charitable educational fund, following an agreement between the OFT and the Independent Schools Council.

The fine is the result of a two-and-a-half-year investigation by the OFT. Strathallan was the only Scottish school in the 50, which also included Eton College and Harrow. The investigation claimed the schools exchanged information on planned feee increases for 2001-02, 2002-03 and 2003-04.

The schools had argued they had not been aware of changes in competition law, but that they stopped sharing information as soon as they were told.

The OFT described the fines imposed as "innovative and proportionate". However, while the schools have admitted contravening the Competition Act, they have not admitted liability.

Fiona Valpy of the Scottish Council of Independent Schools said independent schools did not exist to make huge profits so the fines would still have a financial impact.

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