Pakistan’s competition watchdog took a tougher line in 2025, widening its enforcement net across housing, consumer goods, cars, education and farm machinery as it moved to curb misleading claims and protect buyers.
The Competition Commission of Pakistan said it acted after a rise in complaints and intelligence pointed to a pattern of deceptive marketing that left consumers exposed to financial loss and health risks. In several cases, penalties were upheld on appeal, signalling what officials described as a more assertive phase of enforcement.
Housing schemes under scrutiny
Real estate drew some of the strongest action. Investigators found many housing societies advertising themselves as being in the Islamabad Capital Territory or claiming approval from the Capital Development Authority when this was not the case. The claims were widely circulated online and in print, often aimed at overseas Pakistanis.
The commission opened a major inquiry after its Market Intelligence Unit and Office of Fair Trade flagged widespread misrepresentation. Consumers and investors were invited to submit evidence through an online complaints portal.
One of the most prominent cases involved Kingdom Valley (Pvt.) Limited, which was fined Rs150 million for marketing a project as “Kingdom Valley Islamabad” and linking it to the Naya Pakistan Housing Program and NAPHDA without basis. Courts later dismissed the company’s challenges, allowing the watchdog to recover part of the penalty by attaching bank accounts. The appellate tribunal ordered the firm to deposit half the fine and provide post dated cheques for the remainder.
Health and safety concerns
Away from property, the commission launched a nationwide probe into mercury based skin whitening creams. Several products were found to contain dangerously high levels of mercury while claiming to be safe. Investigators said the toxic ingredient was hidden from labels, raising serious concerns for users.
In the car market, Nishat Hyundai Motors was fined Rs25 million over the launch pricing of the Hyundai Tucson. The commission found that an “introductory price” was offered for less than a day before being raised, with disclaimers printed so small they were easy to miss.
Education providers also came under fire. British Lyceum (Pvt.) Limited received a Rs5 million penalty for a newspaper advertisement that overstated teachers’ salaries and made claims about size, affiliations and governance that could not be verified.
Farmers were another focus. Al Ghazi Tractors Limited was fined Rs40 million after advertising “up to 30 percent extra diesel savings”, a claim the commission said lacked evidence and risked misleading buyers making costly decisions.
Appeals and outcomes
Several major rulings were upheld during the year. The Competition Appellate Tribunal dismissed Reckitt Benckiser’s appeal in the Strepsils case for non prosecution, leaving a Rs150 million fine in place over misleading health claims.
It also backed findings against PREMA Milk for harmful comparative advertising and confirmed action against a pharmaceutical firm over false claims of international certifications, while reducing the penalty. A case against Diamond Paints was similarly upheld, with a reduced fine following the company’s cooperation.
The commission says the message is clear. Misleading consumers now carries a higher risk, and enforcement is no longer limited to one sector or a warning letter.
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