Tailors accused of stitch-up on graduation gown prices
STUDENTS are paying more for graduation ceremonies because an “anti-competitive” near monopoly on academic dress is forcing up prices, it has been alleged.
London’s oldest tailors has been accused of abusing its market position in the hire of ceremonial gowns, The Sunday Telegraph can reveal.
Ede & Ravenscroft was the subject of a complaint to the market regulator for allegedly “eliminating” and “deterring” competition by entering into exclusive contracts with 109 universities.
Some of the contracted universities insist that students must wear the “official supplier’s” garments or be denied entry to their graduation ceremonies.
The universities are paid commission, in some cases 20 per cent per robe. Gowns range from £45 to £50 to hire, while students can be charged up to £150 for photographs. However, the Competition and Markets Authority (CMA) has failed to investigate. While the CMA refused to comment, emails seen by this newspaper reveal that the decision not to investigate was due to an “administrative priority decision and does not reflect a substantive view on the merits of the case”.
Figures show that Glasgow Caledonian University gains £25,000 annually in commission from Ede & Ravenscroft, while Lancaster University receives around £19,000 from its arrangement.
The complainant, an established foreign supplier, also alleges that universities often receive other incentives. The University of Reading receives free staff robe hire worth £30,000. Brunel, Essex and BPP universities all state on their websites that graduates must hire all components of their graduation dress from the supplier.
A spokesman for Ede & Ravenscroft said that it operated in a “competitive market” and denied claims that its success was due to students being “obliged to do business with us”.
“Students have the right to choose from where they hire or buy their academic dress.
“We operate in a competitive market and bid for contracts with universities through their appointment processes,” they added.
“We have won tenders from our competitors, due to our competitive pricing, as well as our service to students on graduation day.
“Naturally we are not successful in all the tenders we bid for as we have formidable competitors who sometimes win contracts from us in what is a properly functioning market.
“The fact that we tender for and win contracts to supply academic dress for the teaching staff of an institution does not mean its students are obliged to do business with us.
“As a long-established, family-owned business we have invested heavily to ensure sufficient stock levels to be able to supply all the graduates of any one institution with the correct academic dress they require.
“The cost of manufacturing the gowns required for any one university can be more than £250,000.
“We are very focused on quality, as well as value, and are proud both of our heritage and how we invest to stay competitive in the modern world.”