The Competition Commission of Pakistan (CCP) has announced legal action against various housing societies and real estate developers operating in Islamabad and surrounding areas for allegedly engaging in false and misleading advertising about their projects.
According to a CCP statement, its Market Intelligence Unit and Office of Fair Trade have collected substantial data and evidence indicating that several housing schemes and developers have been enticing the public with false claims and deceptive promotional materials, causing financial losses to consumers and investors.
The inquiry primarily targets housing projects that falsely claim to be located within the Islamabad Capital Territory (ICT) or under the jurisdiction of the Capital Development Authority (CDA), despite being situated outside those limits.
The CCP has appealed to all stakeholders — including consumers, investors, and overseas Pakistanis — to submit evidence, documents, advertisements, or complaints through its online complaint portal to assist in the ongoing investigation.
Initial findings reveal that many developers misrepresent project locations, using the name “Islamabad” to market schemes actually located in Rawalpindi, Attock, Taxila, or Murree. Others falsely claim to hold NOCs or official approvals from CDA and related authorities.
In addition, several societies have been found using doctored images and exaggerated promotional videos to showcase non-existent development work, while falsely assuring the availability of basic amenities such as electricity, gas, water, schools, hospitals, and community centers.
The commission also noted that some developers use celebrities, actors, and sports personalities in advertisements to attract buyers and investors. Misleading payment plans and hidden charges in installment schemes are also under scrutiny.
The CCP warned that incomplete or under-construction projects offering unrealistic returns on investment are deceptive and damage both consumer trust and fair market competition.
Under Section 10 of the Competition Act, 2010, misleading advertising constitutes a violation punishable by a fine of up to Rs 75 million or 10% of the annual turnover. Persistent violations may lead to further legal actions to protect the public interest.
