KEY POINTS
- Regulator launches inquiry into deceptive marketing practices in real estate sector.
- Developers accused of misrepresenting Islamabad location and CDA registration.
- Commission urges public, investors, and overseas Pakistanis to submit evidence.
- Violators face penalties up to PKR 75 million or 10% of turnover.
ISLAMABAD: The Competition Commission of Pakistan (CCP) has initiated action against deceptive marketing practices by real estate developers and housing societies, it announced on Tuesday.
The decision follows extensive analysis by the CCP’s Market Intelligence Unit (MIU) and the Office of Fair Trade (OFT), which uncovered widespread misrepresentation across the country in the sector.
Misleading claims
According to the CCP, several housing societies and developers have been found falsely claiming to be located within the Islamabad Capital Territory (ICT) or registered with the Capital Development Authority (CDA), despite operating beyond the capital’s jurisdiction.
Projects based in Rawalpindi, Attock, Taxila, and Murree were reportedly marketed using Islamabad’s name to attract buyers and investors.
The Commission stated that such practices not only deceive consumers but also distort market competition and erode trust in legitimate developers.
Public asked to provide evidence
The CCP has called upon consumers, investors, and overseas Pakistanis to assist its inquiry by sharing relevant documents, advertisements, or promotional materials that could substantiate allegations of deceptive conduct. Evidence may be submitted through the CCP’s Online Complaint Portal at www.cc.gov.pk.
A CCP spokesperson stated the initiative aims to “safeguard public interest and ensure fair play in Pakistan’s housing sector,” stressing that transparency in real estate marketing is critical for investor confidence.
Range of deceptive tactics under review
Preliminary findings by the Commission indicate several developers were engaged in false claims of regulatory approval, using fake images, exaggerated renderings and unauthorised celebrity endorsements to promote unapproved projects.
Others allegedly offered misleading instalment plans, inflated promises of amenities, and unrealistic investment returns in schemes lacking official authorisation.
The CCP warned that these tactics particularly exploit overseas Pakistanis, who are often targeted through online campaigns and social media marketing materials.
Legal consequences for violators
Deceptive marketing constitutes a violation of Section 10 of the Competition Act, 2010. Undertakings found guilty may face penalties of up to Rs 75 million or 10 per cent of their annual turnover, whichever is higher.
The Commission added that continued violations could invite further legal and corrective measures to protect consumers and maintain fair competition in the market.
The CCP reaffirmed its commitment to monitoring advertising and promotional content in the real estate sector to curb manipulation and protect public trust.
