CCP Fines Kingdom Valley Rs150 Million for Misleading Ads

The Competition Commission of Pakistan (CCP) has levied a substantial penalty of Rs150 million on Kingdom Valley (Pvt.) Limited due to deceptive marketing tactics, as revealed in a statement released on Wednesday.

The penalty was imposed on the company for its utilization of “misleading advertisements” pertaining to its housing development project.

According to the CCP’s statement, the Fair Trade office took immediate action by launching an investigation following a suo motu notice. The probe revealed that Kingdom Valley (Pvt.) Limited had falsely promoted its project as “Kingdom Valley Islamabad,” despite its actual location in Mouza Choora, Tehsil & District Rawalpindi.

Furthermore, the CCP discovered that the company misrepresented its affiliations with the Naya Pakistan Housing Program (NPHP) and the Naya Pakistan Housing and Development Authority (NAPHDA). They also advertised the project as “NOC Approved” without providing accurate details regarding its approval status.

“The Commission bench, which included Saeed Ahmed Nawaz and Abdul Rashid Sheikh, determined that the company had contravened Sections 10(2)(a) and 10(2)(b) of the Competition Act, 2010, which specifically prohibits the dissemination of inaccurate or deceptive information to consumers. As a result, a penalty of Rs. 75 million was imposed for each violation, culminating in a total fine of Rs. 150 million,” the CCP stated.

The commission also highlighted significant instances of non-compliance, such as the company’s failure to submit audited financial records and its disregard for CCP’s directives.

The statement further noted that the company has neglected to file financial statements with the SECP for several years, raising concerns about its governance and overall transparency.

“The CCP reaffirms its dedication to safeguarding consumers from misleading marketing practices and ensuring equitable competition within the housing and real estate market.”