Housing societies, real estate developers in Capital: CCP launches inquiry into deceptive marketing practices

ISLAMABAD: The Competition Commission of Pakistan (CCP) has launched a formal inquiry into deceptive marketing practices by housing societies and real estate developers operating in Islamabad and surrounding areas.

The decision follows extensive analysis by the Commission’s Market Intelligence Unit (MIU) and the Office of Fair Trade (OFT), which uncovered evidence of misleading advertisements and false claims made to attract consumers and investors.

According to CCP officials, the inquiry focuses on projects and developers that falsely claim to be located within the Islamabad Capital Territory (ICT) or approved by the Capital Development Authority (CDA), despite being situated outside their jurisdiction.

The initial findings revealed that several housing societies based in Rawalpindi, Attock, Taxila, and Murree are using the name “Islamabad” in their branding to deceive potential buyers and enhance their market value.

The Commission noted that many developers have engaged in deceptive practices, including the use of fabricated images, exaggerated digital renderings, and misleading videos portraying infrastructure and facilities that do not exist. The inquiry also found that these projects often make false assurances about the provision of basic utilities such as electricity, gas, and water, as well as amenities like schools, hospitals, and community centers that are not part of any approved plans.

The CCP observed that some housing societies falsely claim to possess official approvals or NOCs from the CDA and other government agencies. Others have used unauthorized endorsements from celebrities and sports figures to lend legitimacy to unapproved or underdeveloped schemes. Several developers have also introduced misleading installment plans that conceal hidden charges and offer unrealistic profit margins to lure investors, particularly overseas Pakistanis.

The CCP has urged consumers, investors, and overseas Pakistanis to assist in the inquiry by submitting relevant evidence, documents, or promotional material through the Commission’s Online Complaint Portal at www.cc.gov.pk.

The Commission emphasised that such deceptive marketing tactics mislead the public, distort fair competition, and damage investor confidence in Pakistan’s property market.

Deceptive marketing constitutes a violation of Section 10 of the Competition Act, 2010. Entities found guilty of such practices may face penalties of up to PKR 75 million or 10 percent of their annual turnover. The CCP has also warned that continued violations could result in further legal and corrective measures to protect public interest and ensure compliance with competition law.

The current inquiry in Islamabad follows a similar ongoing investigation in the Lahore region, which the CCP initiated after receiving a complaint from the Lahore Development Authority (LDA). In that case, reported by The Express Tribune in January 2020, the CCP began investigating 62 private housing schemes accused of misleading advertisements and misrepresenting their location and approval status. The LDA had provided evidence showing that several societies were using the name “Lahore” without authorization and were marketing unapproved plots to the public.

That Lahore inquiry established a precedent for regulatory intervention in the real estate sector, marking CCP’s determination to curb false advertising and safeguard consumer interests. The Islamabad action builds on that precedent, extending the Commission’s oversight to another key region where misleading marketing has become widespread.

Copyright Business Recorder, 2025