CAT Upholds CCP Order Against Kingdom Valley, Imposes Rs35m Penalty for Deceptive Marketing

Competition Appellate Tribunal Upholds Penalty Against Kingdom Valley

The Competition Appellate Tribunal (CAT) upheld the ‘s (CCP) order against Kingdom Valley (Pvt.) Limited on May 27, 2025. The company was directed to deposit a penalty of Rs35 million for misleading consumers about its housing project’s location and approval status.

The CCP observed that Kingdom Valley had engaged in deceptive marketing by portraying the project, actually located in Mouza Choora, Rawalpindi, as being in Islamabad through billboards, social media, and other advertisements. The project was also widely promoted as “NOC approved” before formal approvals were obtained, indicating a calculated strategy to deceive.

In its judgment, the Tribunal endorsed the Commission’s findings that Kingdom Valley had misrepresented the project by advertising it as “Kingdom Valley Islamabad.” It noted that advertisements had been launched prior to obtaining approvals, reinforcing the element of deception. The Tribunal rejected the company’s defense that similar practices were prevalent in the sector, emphasizing that “two wrongs never make one right.”

The penalty of Rs35 million was upheld for violating Section 10(2)(b) of the Act relating to dissemination of false or misleading information to consumers. The Tribunal emphasized that such practices are particularly harmful in the real estate sector, where consumers are frequently misled by exaggerated claims, often resulting in significant financial losses.

Failure to deposit the penalty within 20 days would result in restoration of the Commission’s original order in its entirety, exposing the company to higher financial liability. This ruling reinforces CCP’s enforcement stance against deceptive marketing practices, particularly in the real estate sector that has come under increasing scrutiny due to persistent consumer complaints and misleading advertising practices.