CCP fines Kingdom Valley (Pvt.) Limited Rs150mn for ‘misleading advertising'
In order to curb deceptive marketing practices, the Competition Commission of Pakistan (CCP) has imposed a penalty of Rs150 million on Kingdom Valley (Pvt.) Limited, CCP said in a statement on Wednesday.
The company has been penalised for 'misleading advertisements' concerning its housing project.
In its statement, the CCP said its office of Fair Trade initiated an investigation as per a suo motu notice and found that Kingdom Valley (Pvt.) Limited falsely advertised its project as 'Kingdom Valley Islamabad', despite it being located in Mouza Choora, Tehsil & District Rawalpindi.
The CCP also found that the company misrepresented affiliations with the Naya Pakistan Housing Program (NPHP) and Naya Pakistan Housing and Development Authority (NAPHDA) and publicized the project as 'NOC Approved' without accurate or complete disclosure regarding its approval status.
'The Commission bench, comprising Saeed Ahmed Nawaz and Abdul Rashid Sheikh, concluded that the company had violated Sections 10(2)(a) and 10(2)(b) of the Competition Act, 2010, which prohibit dissemination of false or misleading information to consumers. Consequently, Rs. 75 million was levied for each violation, amounting to a total fine of Rs. 150 million,' the CCP said.
The commission also noted serious non-compliance, including the company's failure to submit audited financial statements and non-compliance with CCP's directives.
The company has also not filed financials with the SECP for several years, raising concerns about its governance and transparency, added the statement.
'The CCP reiterates its commitment to protecting consumers from deceptive marketing practices and ensuring fair competition in the housing and real estate sector.'
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