Pakistan’s Competition Appellate Tribunal reinforces action against misleading real estate marketing, upholding a heavy penalty on Kingdom Valley.
Limited, confirming a penalty of Rs 35 million for misleading advertising practices related to its housing project. According to Beyond Time News, the ruling supports strict action against deceptive marketing in the real estate sector.
Misleading Claims About Location and Approvals
The case centered on allegations that Kingdom Valley misrepresented its housing project by promoting it as located in “Islamabad”, while its actual site is in Mouza Choora, Rawalpindi. The company used billboards, social media campaigns, and other advertisements to market the project under a more attractive location label, which was found to mislead potential buyers.
Authorities also noted that the project was advertised as “NOC approved” even before receiving formal approvals, raising serious concerns about transparency and consumer protection.
Tribunal’s Findings and Decision
In its detailed judgment, the tribunal supported CCP’s findings and confirmed that the company engaged in false and misleading advertising, violating Section 10(2)(b) of the Competition Act.
The bench rejected the developer’s argument that such practices are common in the industry, stating that widespread misconduct cannot justify illegal actions. The tribunal stressed that clear deception in advertising cannot be excused under any circumstances.
It further highlighted that the real estate sector is particularly sensitive, as buyers often make life-changing financial decisions based on marketing claims.
Read more: CAT confirms penalty against Kingdom Valley case.
Rs 35 Million Penalty Maintained
The tribunal upheld the Rs 35 million fine, calling the misrepresentation of the project’s location a serious violation. It also warned that failure to pay the penalty within 20 days would result in the original CCP order being enforced in full, potentially increasing financial consequences for the company.
Strong Message for Real Estate Sector
This decision reinforces the CCP’s strict stance against misleading marketing in Pakistan’s property market, where consumers have frequently faced confusion due to exaggerated or false claims.
The ruling sends a clear message that transparency and honesty in advertising are essential, especially in real estate, where buyers depend heavily on accurate information before making investments.
