Govt regulator cracks down on unlicensed use of “Federation,” “Chamber,” “Association”

The Directorate General of Trade Organizations (DGTO), Ministry of Commerce, warned on Thursday individuals and groups against the illegal use of protected trade body titles such as “Federation,” “Chamber,” and “Association.”

The DGTO reminded the public that it was the sole regulatory authority mandated under the Trade Organizations Act, 2013 (TOA 2013) to license and regulate trade bodies in Pakistan.

The regulator cited Section 3(1) of the Act, and emphasized that no organization can operate as a trade body without a license from the federal government.

The DGTO further pointed to Section 5(3) of TOA 2013, stating that the use of the terms “Federation,” “Chamber,” or “Association” in the name or title of any entity is strictly prohibited unless the entity is duly licensed and registered with the DGTO.

The regulator noted that it had observed various groups and individuals operating illegal bodies “by using these protected titles, misleading the business community and creating confusion in the market”.

Clarifying a common misconception, the DGTO said the exemption under the proviso to Section 5(3) applies only to organizations formed for promoting Art, Science, Religion, Charity, or Sports—and does not apply to any group engaged in Trade, Commerce, Industry, or Services.

“All such unauthorized entities are directed to cease and desist immediately,” the notice stated.

It warned that non-compliance will trigger strict penal action under TOA 2013, including fines, personal liability, and disqualification from any registered trade organization.

The DGTO also advised the business community not to become members of unlicensed bodies, stressing that such entities hold no legal status. Businesses were urged to verify the license status of any trade body with the DGTO before joining, dealing, or engaging in any official interaction.