Islamabad: The Competition Commission of Pakistan (CCP) has initiated a formal inquiry into deceptive marketing practices in the real estate sector, focusing on projects that have misrepresented their location or regulatory approvals to attract buyers.
The investigation follows intelligence reports and data collected by the CCP’s Market Intelligence Unit (MIU) and the Office of Fair Trade (OFT), which indicated that several housing societies and developers were falsely promoting their projects as being within the Islamabad Capital Territory (ICT) or approved by the Capital Development Authority (CDA), despite being located outside its jurisdiction.
The CCP’s inquiry will examine real estate projects that have misled buyers by using Islamabad in their branding, falsely claiming CDA registration, or presenting unverified amenities and services. Preliminary findings suggest that developers have engaged in practices including:
Using “Islamabad” in marketing for projects actually located in Rawalpindi, Attock, Taxila, or Murree.
Falsely claiming regulatory approvals, NOCs, or CDA affiliations.
Employing misleading visuals, fake images, or exaggerated renderings of developments.
Advertising amenities such as schools, hospitals, gas, and water connections that are not part of approved plans.
Promoting unauthorized endorsements, celebrity testimonials, or misleading installment offers.
Advertising unrealistic returns on investment for unapproved or non-existent projects.
The CCP has urged consumers, investors, and overseas Pakistanis to submit evidence supporting the investigation, including advertisements, promotional material, or other relevant documents, through its Online Complaint Portal.
Under Section 10 of the Competition Act, 2010, deceptive marketing practices are punishable with fines of up to PKR 75 million or 10% of a company’s annual turnover. Persistent offenders may face additional legal measures to protect consumers and maintain fair competition in the housing sector.
Officials said the inquiry aims to safeguard buyers, enhance transparency in the real estate market, and restore public trust while ensuring compliance with regulatory standards.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
