ISLAMABAD: During 2025, the Competition Commission of Pakistan (CCP) strengthened enforcement against deceptive marketing across real estate, consumer goods, automobiles, education, cosmetics, and agricultural machinery to protect consumers and promote fair competition.
In the real estate sector, the CCP initiated a major inquiry into misleading advertisements by housing societies and developers. Based on intelligence from the Market Intelligence Unit (MIU) and the Office of Fair Trade (OFT), the Commission found widespread misrepresentation. Many projects falsely claimed to be located in the Islamabad Capital Territory (ICT) or portrayed themselves as approved by the Capital Development Authority (CDA) despite being outside its jurisdiction. The CCP invited consumers, investors, and overseas Pakistanis to submit evidence through its online complaint portal.
A key case involved Kingdom Valley (Pvt.) Limited. The CCP imposed a PKR 150 million penalty for falsely marketing “Kingdom Valley Islamabad,” misrepresenting links with Naya Pakistan Housing Program and NAPHDA, and making misleading NOC claims. During 2025, the Islamabad High Court dismissed the company’s writ petition, while the Competition Appellate Tribunal (CAT) rejected a stay against recovery. The CCP recovered PKR 27 million by attaching bank accounts, and the CAT directed the company to deposit 50 percent of the penalty and submit post-dated cheques for the balance.
In the consumer goods sector, the CCP launched a nationwide probe into mercury-based skin whitening creams. Investigations revealed that several products contained dangerously high mercury levels while falsely claiming to be safe. The mercury content was concealed from ingredient lists, posing serious health risks to consumers.
In the automobile sector, the CCP fined Nishat Hyundai Motors PKR 25 million for deceptive pricing during the launch of the Hyundai Tucson. The Commission found that “introductory prices” were offered for less than 24 hours, followed by an immediate price increase, with disclaimers displayed in hard-to-read text.
In education, British Lyceum (Pvt.) Limited was fined PKR 5 million for a misleading newspaper advertisement that exaggerated teachers’ salaries and made unverifiable claims about size, affiliations, and governance.
In the agricultural machinery sector, Al-Ghazi Tractors Limited was fined PKR 40 million for falsely claiming “up to 30 percent extra diesel savings.” The CCP held that the claim was unsubstantiated and misleading for farmers.
In deceptive marketing litigation, the Competition Appellate Tribunal (CAT) dismissed Reckitt Benckiser’s appeal in the Strepsils case due to non-prosecution, effectively upholding CCP’s Rs150 million penalty for misleading health claims. CAT also upheld CCP’s findings against At-Tahur (Pvt.) Limited (PREMA Milk) for disseminating misleading comparative claims that harmed competitors. In another case, the Tribunal confirmed CCP’s decision against 3N LIFEMED Pharmaceuticals for falsely claiming international quality certifications for a kidney treatment product, while reducing the penalty on mitigating grounds. CAT further upheld CCP’s order against Diamond Paints for deceptive marketing practices, reducing the fine in view of the company’s admission and compliance-oriented approach.
