In a significant move to curb deceptive marketing practices, the Competition Commission of Pakistan (CCP) imposed a hefty fine on a housing society for false and misleading advertisements.
“The commission imposed a penalty of Rs150 million on Kingdom Valley Pvt Ltd for misleading advertisements concerning its housing project,” read a statement by the CCP.
The CCP’s Office of Fair Trade initiated an investigation after taking notice and found that the company “falsely advertised its project as Kingdom Valley Islamabad, despite it being located in Mouza Choora, tehsil and district Rawalpindi”.
It added that the company misrepresented affiliations with the Naya Pakistan Housing Program (NPHP) and Naya Pakistan Housing and Development Authority (NAPHDA).
Furthermore, it was noted that the company publicised the project as ‘NOC [no-objection certificate] Approved’ without accurate or complete disclosure regarding its approval status.
The commission’s bench, comprising Saeed Ahmed Nawaz and Abdul Rashid Sheikh, concluded that the company violated Sections 10(2)(a) and 10(2)(b) of the Competition Act, 2010, which prohibits dissemination of false or misleading information to consumers.
Consequently, the companied imposed a fine of Rs75 million for each violation, amounting to a total fine of Rs150 million.
In addition, the commission noted serious non-compliance on behalf of the company, including its failure to submit audited financial statements.
The company has not filed financials with the Securities and Exchange Commission of Pakistan for several years, raising concerns about its governance and transparency.
In the statement, the CCP reiterated its commitment to protecting consumers from “deceptive marketing practices and ensuring fair competition in the housing and real estate sector”.
It urged buyers and stakeholders to report deceptive advertisements or anti-competitive behaviour to the commission.
