The Competition Commission of Pakistan (CCP) has begun the process of launching formal inquiry into the methods of fraudulent marketing in the real estate sector.
Investigations have followed intelligence reports, which have identified extensive misrepresentation by various housing societies and developers.
According to a statement, the voice of the decision submitted by the CCP’s Market Intelligence Unit (MIU) and the Office of Fair Trade (OTT), which revealed that multiple projects were being misrepresented by the Capital Defense (ICT), due to the fact that it was located within the Islamabad Capital (ICT).
The inquiry will focus on real estate projects that are misleading buyers by using the name of Islamabad or making false claims of CDA registration to enhance reputation and attract investors.
The Commission has called on consumers, investors and Pakistanis abroad to come forward with evidence such as advertising, promotional content, or documents that can support the investigation. Permissions can be made via CCP’s online complaint portal.
Preliminary results suggest that multiple developers are engaged in incorrect advertising and misrepresentation, including:
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In fact, the use of “Islamabad” in branding for projects in Rawalpindi, Attock, Taxila, or Marri.
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Incorrect claims of disciplinary approval, NOCS, or CDA affiliations.
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Using fake images, exaggerated racing, and a fraudulent style of progress.
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Utilities and facilities like gas, water, schools and hospitals are not available in approved projects.
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Unauthorized verification, appreciation of celebrities, or promoting misleading offers of the installment with hidden expenses.
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Promotion of non -approved or even non -existent projects on investment in non -existent projects.
The CCP noted that these exercises have not only thwarted consumers and overseas Pakistanis but also distorted competition in the housing market and eliminated public confidence.
Under Section 10 of the Competition Act, 2010, fraud marketing has been convicted for 75 million or 10 % of the annual business being fined up to PKR. Permanent criminals may face additional legal and corrective measures to protect consumers and ensure fair competitiveness in the sector.