CCP launches probe into fake Islamabad housing ads

The Competition Commission of Pakistan (CCP) has launched a formal inquiry into deceptive marketing practices in the housing sector after intelligence reports revealed widespread misrepresentation by several housing societies and developers.

According to a CCP statement, the move follows extensive data gathered by the Commission’s Market Intelligence Unit (MIU) and Office of Fair Trade (OFT), which found that multiple housing projects have been falsely advertised as being located within the Islamabad Capital Territory (ICT) or approved by the Capital Development Authority (CDA), despite being outside its jurisdiction. The inquiry will target projects misleading buyers by using Islamabad’s name or falsely claiming CDA registration to gain credibility and attract investors.

The CCP has urged consumers, investors, and overseas Pakistanis to share evidence such as advertisements, promotional materials, or documents through its Online Complaint Portal to assist the investigation.

Preliminary findings indicate that several developers have engaged in false advertising and misrepresentation. Some have used “Islamabad” in branding for housing projects actually located in Rawalpindi, Attock, Taxila, or Murree, while others have falsely claimed regulatory approvals, NOCs, or CDA affiliations. Many have used fake images, exaggerated visuals, and misleading renderings of developments to attract buyers. Developers have also promised utilities and amenities such as gas, water, schools, and hospitals that do not exist in approved plans, while some have promoted unauthorized endorsements, celebrity testimonials, and installment offers with hidden costs. In several cases, unrealistic investment returns have been advertised for unapproved or even non-existent projects.

The Commission said such deceptive marketing has misled consumers and overseas Pakistanis, distorted competition in the housing market, and eroded public trust.

Under Section 10 of the Competition Act, 2010, deceptive marketing constitutes a violation punishable by a fine of up to Rs75 million or 10 percent of annual turnover. The CCP warned that persistent offenders may face additional legal and corrective measures to protect consumers and ensure fair competition in the sector.