CCP warns consumers against bogus housing schemes

Business Recorder

2 days ago

ISLAMABAD: The Competition Commission of Pakistan (CCP) has warned consumers that bogus housing schemes and deceptive marketing practices continue to harm growth in real estate sector.
According to an order issued by the CCP against a housing society of Islamabad, the importance of responsible and accurate advertising in relation to real estate should not, in any circumstance, be undermined. The real estate market plays a vital role in the development of any country's economy as numbers of other associated sectors have close links with this sector. At the same time, the degree of regulation remains inadequate to the extent that bogus housing schemes and deceptive marketing practices continue to harm growth in this sector, ultimately causing a loss to the overall sustainability of Pakistan's economy.
The Commission, at the outset, also bears in mind the specific circumstances of consumers that often fall victim to misleading claims in relation to real estate investments they may make.
For the majority of the population in this country, it almost takes a lifetime of savings or obtaining credit or loans from banks to make an investment such as the acquisition of a plot to secure a more stable future. Such a transactional decision is a much more complicated and difficult one as compared to buying everyday household product from a supermarket.
'Therefore, we cannot stress enough, the higher burden placed on undertakings which operate in the real estate market, in relation to the accuracy of any claims or representations that they make in the course of their marketing campaigns, CCP order maintained.'
In this case, the CCP Bench considered the seriousness of the infringement, particularly the nature of the deceptive marketing practices, effect on competitors and third parties, and Respondent's refusal to cooperate with the Commission for carrying out its investigations. The advertisement was disseminated widely through digital and print media. Accordingly, there is dire need to deter the Respondent and other such undertakings from committing such deceptive marketing practices in future in order to protect the market integrity and consumers' interests.
The quantum of the penalty has been determined after taking into account all the relevant factors as enumerated in CCP, Fining Guidelines. Deceptive marketing and dissemination of false and misleading information appears to be the business strategy of housing scheme being advertised as another scheme of Islamabad as it started immediately after its incorporation and well before the promulgation of the PHATA Affordable Private Housing Scheme Rules 2020.
Therefore, the CCP Bench hereby imposes a penalty of Rs 75,000,000/- (Seventy Five Million Rupees) upon the Respondent for violation of Section 10(2) (b) of the Act.
The Bench also imposes a penalty of Rs 75,000,000/- (Seventy Five Million Rupees) upon the Respondent for violation of Section 10(2)(a) of the Competition Act.
Copyright Business Recorder, 2025