The Competition Commission of Pakistan (CCP) has begun the process of launching a formal inquiry into deceptive marketing practices within the real estate sector.
The investigation follows intelligence reports indicating widespread misrepresentation by various housing societies and developers.
According to a statement, the decision stems from extensive data collected by the CCP’s Market Intelligence Unit (MIU) and the Office of Fair Trade (OFT), which revealed that several projects are falsely marketing themselves as being located within the Islamabad Capital Territory (ICT) or approved by the Capital Development Authority (CDA), despite being situated outside its jurisdiction.
The inquiry will focus on real estate projects that have been misleading buyers by using Islamabad’s name or falsely claiming CDA registration to enhance credibility and attract investors.
The Commission has urged consumers, investors, and overseas Pakistanis to come forward with evidence such as advertisements, promotional materials, or documents that may support the investigation. Submissions can be made via the CCP’s Online Complaint Portal.
Preliminary findings show that several developers have engaged in false advertising and misrepresentation, including:
-
Using “Islamabad” in branding for projects actually located in Rawalpindi, Attock, Taxila, or Murree.
-
Falsely claiming regulatory approvals, NOCs, or CDA affiliations.
-
Employing fake images, exaggerated renderings, and deceptive visuals of developments.
-
Promising utilities and amenities such as gas, water, schools, and hospitals that do not exist in approved plans.
-
Promoting unauthorized endorsements, celebrity testimonials, or misleading installment offers with hidden costs.
-
Advertising unrealistic returns on investments in unapproved or even non-existent projects.
The CCP noted that these practices have not only misled consumers and overseas Pakistanis but also distorted competition in the housing market and eroded public trust.
Under Section 10 of the Competition Act, 2010, deceptive marketing constitutes a violation punishable by a fine of up to PKR 75 million or 10% of annual turnover. Persistent offenders may face additional legal and corrective measures to protect consumers and ensure fair competition in the sector.
