The Competition Appellate Tribunal (CAT) has upheld a major decision by the Competition Commission of Pakistan (CCP) against a private developer. The case involves misleading marketing practices linked to a large housing society project.
The tribunal ordered Kingdom Valley (Pvt.) Limited to pay a penalty of Rs35 million. The company was found guilty of misleading consumers about the location and approval status of its housing society project.
According to the CCP, the developer promoted its project as being in Islamabad. In reality, the housing society is located in Mouza Choora, Rawalpindi. The project was advertised as “Kingdom Valley Islamabad” across billboards, social media, and other platforms.
Officials said the marketing campaign was designed to attract more buyers. By using the Islamabad name, the company allegedly increased the perceived value of the housing society.
The CCP also noted that the project was promoted as “NOC approved” before receiving formal approvals. This was seen as misleading and part of a planned marketing strategy.
The tribunal agreed with the CCP’s findings. It stated that the housing society was clearly misrepresented to consumers. It also confirmed that advertisements were launched before official approvals were granted.
Kingdom Valley defended its actions by claiming similar practices exist in the real estate sector. However, the tribunal rejected this argument. It said that widespread violations do not justify misleading consumers.
The judgment included a strong observation on accountability. The tribunal stated that deception becomes serious when it happens openly. It added that one violation cannot be excused by another.
The ruling confirmed that the company violated Section 10(2)(b) of the Competition Act. This section deals with false or misleading information provided to consumers.
The tribunal described the misrepresentation of the housing society location as a serious violation. It warned that such practices can cause financial losses for buyers.
It also ordered the company to deposit the penalty within 20 days. Failure to comply could result in further enforcement action and higher liability.
The decision reinforces regulatory action against misleading marketing in the real estate sector. Authorities say many buyers in a housing society are often vulnerable to false claims.
The ruling is expected to strengthen consumer protection. It also sends a clear message against deceptive advertising practices in future housing society projects.
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