CCP Slaps Rs150 Million Fine on Kingdom Valley for Misleading Advertising
The Competition Commission of Pakistan (CCP) issued a Rs150 million fine on Kingdom Valley (Pvt.) Limited for disseminating fraudulent marketing about its housing project. The action followed a suo motu notification and subsequent investigation by the CCP’s Office of Fair Trade.
According to the CCP, Kingdom Valley falsely promoted its housing scheme as “Kingdom Valley Islamabad,” despite the fact that the project is located in Mouza Choora, Tehsil & District Rawalpindi. This geographical deception was declared a purposeful attempt to deceive potential buyers by assuming proximity to and association with Islamabad, the federal capital.
Further investigation revealed that the corporation misrepresented its involvement in two significant government initiatives: the Naya Pakistan Housing Program (NPHP) and the Naya Pakistan Housing and Development Authority (NAPHDA). Kingdom Valley’s advertising materials suggested an official relationship with these initiatives, which was later proven to be incorrect.
The corporation also branded its project as “NOC Approved” (No Objection Certificate), a word that consumers commonly interpret as indicating legal approval and regulatory compliance. However, the CCP discovered that these assertions lacked complete and accurate information about the project’s real approval status.
The commission determined that these activities were a breach of Sections 10(2)(a) and 10(2)(b) of the Competition Act of 2010. These regulations specifically ban the dissemination of incorrect or misleading information that can influence consumer decisions and distort market competition. The CCP ordered a fine of Rs75 million for each of the two offenses, totaling Rs150 million.
Aside from the false ads, CCP also identified severe compliance concerns within the organization. Kingdom Valley failed to submit its audited financial accounts on time and did not follow several Commission requirements. Furthermore, it has not filed financial statements with the Securities and Exchange Commission of Pakistan (SECP) in several years, raising concerns about corporate governance and financial transparency.
The CCP emphasized its firm commitment to ensuring fair competition and protecting consumer interests in Pakistan’s real estate and housing markets. A Commission official noted that such practices weaken consumer trust and undermine market integrity.
To promote transparency and reduce anti-competitive behavior, the CCP invites the general public, including consumers and stakeholders, to report any deceptive advertising or unfair market practices. Reports can be filed through the Commission’s WhatsApp and email methods.
This momentous verdict is expected to set a precedent for future housing developers and warn that dishonest marketing methods will result in serious legal and financial consequences.
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