CCP’s Decision Regarding Misleading Advertising by Eden Builders Upheld

In a recent development, the Competition Appellate Tribunal (CAT) has dismissed the appeal filed by Eden Builders (Pvt) Ltd, upholding the decision of the Competition Commission of Pakistan (CCP) regarding misleading advertising claims about their housing project. In 2018, the CCP imposed a penalty of Rs. 2.5 million on Eden Builders for deceptive marketing campaigns related to their ‘Eden Life Islamabad’ project, violating Section 10 of the Competition Act, 2010. The CCP determined that Eden Builders’ claims were misleading. Specifically, their advertisement featured an illegible disclaimer about additional development charges not included in the quoted price, which was held misleading and tantamount to an omission of material price related information, thus violating Section 10 of the Competition Act. The allusion in the advertisement of approval by CDA was also held to be a false and misleading claim, as there was no such approval. Eden Builders filed an appeal against the CCP’s order before CAT. The Tribunal dismissed the appeal and upheld CCP’s order regarding Eden Builders’ violations of Section 10 of the Act.