CCP steps up crackdown on deceptive marketing in 2025

December 30, 2025 (MLN):  The Competition Commission of Pakistan (CCP) significantly stepped-up enforcement during 2025, cracked down on deceptive marketing practices across real estate, consumer goods, automobiles, education, cosmetics, and agricultural machinery to protect consumers and ensure fair competition.

In the real estate sector, the CCP launched a major inquiry into misleading advertisements by housing societies and developers after intelligence from its Market Intelligence Unit (MIU) and Office of Fair Trade (OFT) revealed widespread misrepresentation, according to a press release issued.

Many projects falsely claimed to be located in the Islamabad Capital Territory (ICT) or misled consumers by portraying themselves as approved by the Capital Development Authority (CDA).

The Commission invited consumers, investors, and overseas Pakistanis to submit evidence through its online complaint portal.

A  case involved Kingdom Valley (Pvt.) Limited, which was fined Rs150 million for falsely marketing “Kingdom Valley Islamabad,” misrepresenting associations with the Naya Pakistan Housing Program and NAPHDA, and making deceptive NOC claims.

During 2025, the Islamabad High Court dismissed the company’s writ petition, while the Competition Appellate Tribunal (CAT) rejected a stay on penalty recovery.

The CCP recovered Rs27m by attaching bank accounts, and the CAT ordered the company to deposit 50% of the penalty and submit post-dated cheques for the remaining amount.

In the consumer goods sector, the CCP conducted a nationwide investigation into mercury-based skin whitening creams.

The probe found several products containing dangerously high mercury levels while falsely claiming to be safe, with the toxic ingredient concealed from product labels, posing serious health risks.

The automobile sector also saw enforcement action, as the CCP imposed a Rs25m fine on Nishat Hyundai Motors for deceptive pricing practices during the launch of the Hyundai Tucson.

The Commission found that so-called “introductory prices” were offered for less than 24 hours before an immediate increase, with disclaimers displayed in barely readable text.

In education, British Lyceum (Pvt.) Limited was fined Rs5m for a misleading newspaper advertisement that exaggerated teachers’ salaries and made unverifiable claims about the institution’s size, affiliations, and governance.

The agricultural machinery sector faced similar scrutiny, with Al-Ghazi Tractors Limited fined Rs40m for falsely claiming “up to 30% extra diesel savings,” a claim the CCP ruled was unsubstantiated and misleading for farmers.

Meanwhile, the Competition Appellate Tribunal upheld several key CCP enforcement actions during 2025. CAT dismissed Reckitt Benckiser’s appeal in the Strepsils case due to non-prosecution, effectively maintaining a Rs150m penalty for misleading health claims.

It also upheld CCP’s findings against At-Tahur (Pvt.) Limited (PREMA Milk) for harmful misleading comparative advertising.

In another case, the Tribunal confirmed CCP’s decision against 3N LIFEMED Pharmaceuticals for falsely claiming international quality certifications, though it reduced the penalty on mitigating grounds.

CAT further upheld the order against Diamond Paints for deceptive marketing, reducing the fine in light of the company’s admission and compliance-focused conduct.

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