CAT upholds CCP order against Kingdom Valley

CCP has maintained Rs35m penalty for deceptive marketing.

The Competition Appellate Tribunal (CAT) has upheld the Competition Commission of Pakistan (CCP)’s order dated 27 May 2025 against Kingdom Valley (Pvt.) Limited, directing the real estate developer to deposit a penalty of Rs35 million for misleading consumers about the location and approval status of its housing project.

During the proceedings, the Commission observed that Kingdom Valley had engaged in deliberate deceptive marketing by portraying its project, actually located in Mouza Choora, Rawalpindi, as in Islamabad through billboards, social media, and other advertisements, thereby misleading consumers to command higher value. It is further added that the project was being widely promoted as “NOC approved” even before formal approvals were obtained, indicating a calculated strategy to deceive.

In its detailed judgment, the Tribunal endorsed the Commission’s findings, holding that the company had clearly misrepresented the project by advertising it as “Kingdom Valley Islamabad” despite its actual location in Rawalpindi. It noted that advertisements had been launched prior to obtaining approvals, reinforcing the element of deception.Rejecting the Kingdom Valley’s defence that similar practices were prevalent in the sector, the Tribunal observed that “the deception angle becomes insurmountable when violation occurs in broad daylight,” adding that “two wrongs never make one right.”While upholding the violation under Section 10(2)(b) of the Act, relating to dissemination of false or misleading information to consumers, the Tribunal maintained the penalty of Rs35 million, terming the misstatement of the project’s location a “grave default.”

It emphasised that such practices are particularly harmful in the real estate sector, where consumers are frequently misled by exaggerated claims, often resulting in significant financial losses.

The Tribunal further directed that failure to deposit the penalty within 20 days would result in restoration of the Commission’s original order in its entirety, exposing the company to higher financial liability.The ruling reinforces the CCP’s enforcement stance against deceptive marketing, particularly in the real estate sector, which has come under increasing scrutiny due to persistent consumer complaints and misleading advertising practices.