In a significant move to curb deceptive marketing practices, the Competition Commission of Pakistan (CCP) has imposed a penalty of Rs. 150 million on Kingdom Valley (Pvt.) Limited for misleading advertisements concerning its housing project.
Acting on a suo motu notice, CCP’s Office of Fair Trade initiated an investigation and found that the company:
The Commission bench, comprising Saeed Ahmed Nawaz and Abdul Rashid Sheikh, concluded that the company had violated Sections 10(2)(a) and 10(2)(b) of the Competition Act, 2010, which prohibit dissemination of false or misleading information to consumers. Consequently, Rs. 75 million was levied for each violation, amounting to a total fine of Rs. 150 million.
In addition, the Commission noted serious non-compliance, including the company’s failure to submit audited financial statements and non-compliance with CCP’s directives. The company has also not filed financials with the SECP for several years, raising concerns about its governance and transparency.
The CCP reiterates its commitment to protecting consumers from deceptive marketing practices and ensuring fair competition in the housing and real estate sector.
Consumers and stakeholders are encouraged to report deceptive advertisements or anti-competitive behaviour to CCP via WhatsApp at 0304-0875255 or email at [email protected].
Editorial & Legal Practice Group
Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.
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Jurisdiction: Pakistan