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. The company was directed to deposit a penalty of Rs35 million for misleading consumers about its project’s location and approval status.

During proceedings, the CCP noted that Kingdom Valley had used billboards, social media, and advertisements to portray its project in Islamabad when it is actually located in Rawalpindi. The Commission also observed that the project was being promoted as “NOC approved” before formal approvals were obtained, indicating a deliberate strategy to deceive.

The Tribunal endorsed the CCP’s findings, holding that Kingdom Valley had misrepresented the project by advertising it as “Kingdom Valley Islamabad.” It noted that advertisements were launched prior to obtaining approvals, reinforcing the element of deception. The Tribunal rejected the company’s defense, stating that similar practices are prevalent in the sector but emphasized that such violations are insurmountable.

The penalty of Rs35 million was upheld for violation under Section 10(2)(b) of the Act, relating to dissemination of false or misleading information to consumers. The Tribunal emphasized that misstatements of a project’s location can be particularly harmful in the real estate sector, where exaggerated claims often result 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 against deceptive marketing practices, especially in the increasingly scrutinized real estate sector.